VISHAL JAIN

Market percentage of videocon air conditioners

A

Research project report on“MARKET SURVEY OF VDEOCON A.C.”

Submitted for the fulfillment for the award of Master of Business Administration (MBA) degree from Uttar Pradesh Technical University (UPTU), Lucknow.

Submitted By:VISHAL JAIN

MBA IV Semester Roll No-0802970406

Under the guidance of

Mr.MRINAL VERMAYear 2009-10

Krishna Institute of Engineering and Technology(Department of Management Studies)

13 KM Stone, Ghaziabad - Meerut Road, Ghaziabad – 201206 (U.P.)

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To whom it may concern

This is to certify that Mr. Vishal Jain, Roll no.0802970406, is the student of MBA final semester and has successfully completed his project on “MARKET SURVEY OF VDEOCON A.C.”

Date. HOD

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To whom it may concern

This is to certify that Mr.Vishal Jain, Roll no.0802970406, is the student of MBA IV semester. He has worked on the research project titled “MARKET SURVEY OF VDEOCON A.C.” under my supervision and guidance. This is an original and authenticated work done by him.

Date. Mr.Mrinal Verma (Guide)

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Declaration

I Vishal Jain, Roll no.0802970406, student of MBA IVth Semester of KIET School of management, Ghaziabad hereby declare that the research project report on “MARKET SURVEY OF VDEOCON A.C.”, is an original and authenticated work done by me. I further declare that it has not been submitted else where by any other person in any of the university for the award of any degree or diploma.

Date Vishal Jain

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Acknowledgement

Research project is an integral part of the MBA program in KIET(Department of Management Studies).I would like to take this opportunity to express my gratitude to all the people who in some way or the other helped me to accomplish this challenging project in Market Survey of Videocon AC.I received great inputs and inspiration at various stages of the project from my guide, Mr.Mrinal Verma (Faculty Mentor) and I am indebted to him for his earnest out of the way he helps. He had been a constant source of encouragement and re-assurance throughout my stint with my project.

I am thankful to all the members of Videocon Ltd.who have given their support in the project work.The major source of books for me was the library of Krisna Institute of Engeenering and Technology and websites of Videocon. . My social gratitude is to Mr.K.R.Chaturvedi (HOD-MBA). Last but not the least; I am thankful to all my friends and colleagues for all the support they provided.

Vishal Jain

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PREFACE

In the present age only sales is not important for any organization.

Now people want something different, if you are capable to give that

particular thing in your product than sales will be definite.

Now people choose different kind of product and if you want to know

that what people want you have to go through common people. But in

the age of electronic era air conditioners are still very much effective.

A.C. are very much effective medium for get rid of from heat of

summer season.

VIDEOCON ELCETRONICS is one of the India’s biggest electronic

gadgets manufacturer and 1st Indian Multinational Company.

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Contents

Executive Summary 08-09

Chapter I

Introduction 09-10 Company Profile 11-29 Air conditioners 30-33 Products 34-47

Chapter II

Research Methodology 48-51 Data Analysis & Results 52-60 Objective of Research 61

Chapter III

Findings 62-65 SWOT Analysis 66-67 Limitations of the study 68

Appendix

Conclusion 69-70 Bibliography 71 Questionnaire 72-74.

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EXECUTIVE SUMMARY

Training has always played an essential role in imparting a working

knowledge. I would like to give my sincere thanks to Mr. ASHUTOSH

MISHRA for my training in CORPORATE SALES (A.C.) where I got to

know about the marketing strategies of VIDEOCON and other

competitors in the market like DAIKAIN, L.G, and HITACHI. VIDEOCON

is a one of the leading marketing shareholder in the consumer

durable industry. It manufactures air conditioners, refrigerators, TV’s,

washing machines, microwaves, and music system. In today’s

cutthroat competition no customer is permanent unless he/she is

highly satisfied with the product & brand. If the consumer is satisfied

he will purchase other products of the same company. The air

conditioner industry is growing very fast as the demand for Videocon

air conditioners has increased this year because of its unique pricing

strategy.

In this project I did comparative study of all the major players dealing

in air conditioners .The project is the systematic collection of data

from various dealers in Delhi, the entire data is analyzed on various

basis like consumer preference for the Videocon products. What all

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are the major consideration while buying a Videocon A.C .The project

also include various charts which gives a clear cut figures.

Demonstrating the various aspects of the market preference for the

Videocon A.C, Project has been of vital importance as it made me to

know about the various markets and the price strategies being

followed in the competitive market. This project also include a part of

marketing being done by me for the CORPORATE SALES (A.C.). It

revealed many aspects as to how important is Advertising is to

organization and lack of awareness among the customers restricted

them from availing the various facilities of the product. The

methodology consist of in-depth study of primary data comprising

interaction with the managers and other officials while secondary

data comprising of the various data collected after visiting sites of

Videocon India.

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CHAPTER - I

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INTRODUCTION

The project has been undertaken in a wellknown Indian MNC

company “VIDEOCON”. The main objective behind the project is to

know about the consumer preference for the product when other

competitors like L.G, HITACHI, DAIKAIN are there in the market, and

to get an insight into the price strategy of the company as well as

the post launch status of the company and to find the various

reasons because of which the company is able to survive the edge

cutting competition and what are the other marketing strategy of

the company. A survey has been done and data has been collected

from various companies all over GURAGON and some part of DELHI

thus a report has been prepared. In this scheme we meet to

purchase manger of a company and told about corporate sales

scheme in that we provide A.C. at lower price because of this

scheme attract manager to purchase it. The dealers give

promotional leverage to some brand of air conditioners. They also

give more the shelf space to those products as the shelf space is

directly correlated with the kind of margins received & schemes

given to the multi brand dealers i.e. more the margin more the

space. Hence, one may conclude that maximum promotional

leverage is given to the brand giving maximum margins & offering

the best schemes.

VIDEOCON IN INDIA

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Videocon is the fastest growing home appliances company of India.

Now it is the first Indian home appliances company. Videocon start

its new mission with new Videocon symbol. It new symbol show

dedication of company to maintaining the highest international

standards of excellence through quality, technology and innovation.

For over a decade now, Videocon has been bringing the latest and

very best in Consumer Electronics and Home Appliances. Videocon

continue innovate new international technology to suit Indian as well

as international needs, and crafting it to improve the quality of life -

as millions of satisfied customers will agree.

The new symbol of Videocon that is in three color orange, while, and

green the India`s flag color .. A symbol that proclaims a paradigm

shift. A sign that represents the new force that is Videocon. Thus

recapitulating our principle of reaching out and touching the lives

millions of people. Worldwide.

INDIA TODAY. THE WORLD TOMORROW

A MAN OF ALL SEASONS:

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A Man of ideas. A man of substance. A man of vision. Shri Nandlal

Madhavlal Dhoot, the founder of the Videocon group, completed his

education in Ahmednagar, Pune, and in Maharashtra, India. A

successful sugarcane and cotton grower, he boldly ventured forth and

imported machinery from Europe, setting up the Gangapur Sakhar

Karkhana (Sugar Mill) in 1955, at a time when the village had no

electricity, thereby unleashing an industrial revolution.

The die was cast. Over the years, Nandlalji's pioneering spirit found

expression in a myriad ways, earning him the well-deserved

reputation of the doyen of industrial activity in Marathwada, India.

In early 80s, Nandlalji initiated his three sons - Venugopal, Rajkumar

and Pradeep into the business. Through a technical tie-up with

Toshiba Corporation of Japan, he launched India's first

world-class Colour Television. Videocon is a household name across

the nation - India's No.1 brand of Consumer Electronics and Home

Appliances, trusted by over 50 million people to improve their quality

of life.

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The Videocon Group is committed to create a better quality of life for

people and furthering the interests of society, by being a responsible

corporate citizen.

CREATING HAPPINESS

We will bring happiness into every home, offering high quality

consumer durables at affordable prices, spreading the culture of

convenience, entertainment and comfort, far and wide.

ACHIEVING PROGRESS

We will pursue innovative technologies in the fields of Electronics and

Energy, create products and services that will improve the quality of

life, realise the goals of the world community and protect the

environment.

SUSTAINING GROWTH

We will be a source of pride to our business associates by ensuring

mutual prosperity and growth through the implementation of forward-

looking corporate strategies, aimed at identifying opportunities and

responding intelligently to the dynamics of change.

PURSUING EXCELLENCE

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We will provide a conducive environment for enabling our employees

to develop their potential and make a significant contribution to the

Group's success.

Where fields of sugarcane grow tall and proud.

Where bushes of cotton bud bloom.

Where tourists flock to the world-famous caves of Ajanta and Ellora.

Where India's NO.1 Consumer Electronics and Home Appliances take

shape, to take millions of Indians into a better, brighter future.

This is Marathwada, India, where the Dhoot family launched Videocon

International Limited in 1984, with the avowed purpose of producing

world-class Colour Television through a technical tie-up with Toshiba

Corporation of Japan. Within a decade, Videocon emerged as India's

leading brand of both Colour and Black & White Televisions and

continues to dominate this highly competitive market.

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http://www.videoconworld.com/index.php


The leader innovates. The leader forges ahead. The leader breaks

new ground. Harnessing the advanced technology, relentlessly

pursuing quality to achieve various international standards of Quality

Control. Breaking through, time and again, with innovative products

for a better life.

PROFILES OF LEADERSHIP

Futuristic Neuro Fuzzy Logic Washing Machines, User-friendly - No-

Frost Refrigerators, the very latest music systems. The most

sophisticated Colour Television and DVDs. High-Tech Air-conditioners.

Videocon today, is a multi-faceted group, with 9 state -of-the-art

manufacturing facilities all over India. Highly qualified engineers,

trained in Japan, backed by 6500 technical and support staff, work

together in close unison to produce India's leading branch of

consumer electronic products and home appliances.

THE VIDEOCON COMPLEX AT AURANGABAD

Videocon's production facilities are located at Chitegaon and

Bhalgaon , both backward areas, near Aurangabad, India.

Fast forwarding into the modern era, with due support from the

Government of Maharashtra, India.

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Videocon's modern VCD plant at Bhalgaon products produces VCRs

for the Indian and International markets

The sophisticated Refrigerator plant of Videocon Appliances Ltd.,

at Chitegaon

The state -of-the-art Washing Machine plant of Videocon

Appliances Ltd., at Chitegaon.

Videocon International's Colour TV plant at Chitegaon.

In 1985, through a technical tie-up with Toshiba Corporation of Japan,

Videocon International Limited launched India's first world class

Colour Television. Today, Videocon International Ltd., the flagship

company of the Videocon Group, is India's leading manufacturer of

Consumer Electronic products. Fired by a passion for innovation,

Videocon has kept pace with the changing face of technology,

constantly upgrading its manufacturing facilities to incorporate

advanced technology and high standards of quality into its product

range, right across the spectrum.

TECHNOLOGY WITH A HEART

Committed to giving the consumer the best the world has to offer,

Videocon has developed near zero wastage technology which helps

reduce manufacturing costs by optimising material inputs. Coupled

with quality-consciousness at every stage, the consumer benefits

enormously by getting premium products at affordable prices.

The company currently manufactures Colour TVs, Black & White TVs

and Audio products. At its modern plant at Chitegaon and

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Aurangabad, the Company has also undertaken complete backward

integration to manufacture all critical and important components of

its products, such as Electronic Tuners, FBTs, ATDMs and Deflection

Yokes, thereby reducing costs, ensuring quality control and becoming

vertically integrated. It has set up a unit at Gandhinagar in Gujarat for

manufacturing Black & White TV picture Tubes.

THE SOUND OF EXCELLENCE

Videocon produces a sophisticated range of Home Audio Systems,

Stereo Radio, Recorders and Personal Stereos, as well as the

conteporary international range of VIDEOCON Digital Hi Fi Systems.

FIRST WITH THE BEST

Continuous up gradation and indigenous manufacturing has been and

continues to be an integral part of the company's philosophy.

Perceived as an innovator in its field, Videocon has notched up many

exciting firsts, by exploring the world's most advanced technologies.

In Color TVs, Videocon was the first Indian Company to introduce

Picture-In-Picture, Turbo Sound, Surround Sound, Larger Screen Sizes,

the Full Flat Square Tube, Bazooka technology and the Freedom

series : affordable high quality range of Colour TVs for the price-

conscious consumer.

GLOBAL AMBITION

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Looking beyond India, Videocon is now a global player, acknowledged

by the world. It is the first Indian company to win the prestigious CE

approval for exporting its Colour TV to Europe. Videocon is now

entering world market with its operations in the Middle East, Europe,

Indonesia and South Africa.

Videocon Narmada Glass (VNG): a division of Videocon International

Ltd., has the distinction of having set up India's first plant for the

manufacture of Glass Shells for Colour Television Picture Tubes, in

technical collaboration with Techneglas Inc., USA (formerly known as

OI-NEG TV Products Inc., USA), world leader in Glass Shell

Technology.

The projects in 1990, when the then Prime Minister of India, the late

Shri Rajiv Gandhi, laid the foundation stone for the project.

The Videocon Group, with the objective of backward integration,

joined hands with Gujarat Narmada Valley Fertilizers Co. Ltd., (GNFC)

for the implementation of this 100% import substitution project, the

largest investment (Rs. 450 crores) in electronic component industry

in the country. The plant, with an installed annual capacity of 1.7

million Glass Shells for Colour Picture Tubes and 0.25 million glass

Bulbs for Black & white Picture Tubes and Monochrome Monitor

Tubes, is located at Village Chavai, District Bharuch, Gujarat.

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THE HEIGHTS OF SUCCESS

The CTV Glass Shells manufactured by VNG are at par with

international standards and the Color Picture Tubes made with VNG

glass have already received VDE approval .The facilities include a

state-of-the-art Tool Room and Mould Shop to manufacture and

maintain its mould requirements. Having initially successfully

established its 20V, 19V and 13V CTV glass parts, VNG has now

developed the 20V 2R the latest models.

A PICTURE PERFECT FUTURE

Till 1994, Indian manufacturers of CTV Picture Tubes were importing

Glass Shells. VNG's production has replaced these imports, thereby

saving almost Rs.200 crores of precious foreign exchange every year.

VNG has now surpased the norms of performance guranteed by the

collaborator, Techneglas Inc., USA. and is operating the plant with

150% capacity utilisation - with efficiencies exceeding international

standards.

Promoted by the Videocon Group, Videocon Appliances Ltd. was

incorporated in 1988.

Making the Group's diversification into the Home Appliances,

Videocon has continued with its mission of bringing the benefits of

innovative technology to millions of homes.

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THE WASHING MACHINE REVOLUTION

The company's first priority was to launch an international quality

washing machine, thereby liberating the Indian housewife from the

daily back-breaking, time-consuming drudgery of washing clothes by

hand. Videocon introduced India's first Twin Tub Washing Machine, in

collaboration with Matsushita Electric Industrial Co. Ltd., Japan.

Videocon quickly become the market leader. Today, Videocon

produces India's widest range of washing machines, at its state-of-

the-art plant at Chitegaon, Aurangabad, India. The only fully

integrated washing machine plant in India with ISO 9002 certification,

it is the second largest among Matsushita's licensees, worldwide.

CLEANING UP THE MARKET

The Videocon range includes washers, Semi-automatic and fully

Automatic Washing Machines, Fuzzy Control Washing Machines and

India's first Neuro Fuzzy Logic Washing Machine.

FIRST WITH NO - FROST TECHNOLOGY

Focusing its attention on an industry that underwent a technological

stalemate for over a decade, Videocon turned it around. Entering the

market in 1992 with breakthrough technology, Videocon pioneered

India's first No-Frost Refrigerators, produced in technical (design and

drawing) collaboration with Matsushita Refrigeration Co., Japan.

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Videocon has also significantly upgraded the conventional refrigerator

by introducing features such as clean back, double-door, and

automatic defrosting. The refrigerator plant has modern

manufacturing facilities including Paint Shop and PUF Machines.

A BREATH OF FRESH AIR

Videocon offers the widest range of Room Air-conditioners in India,

manufactured under a design and drawing agreement with

Matsushita Electric Industrial Co. Ltd.

It was the first company to introduce Air-conditioners with Rotary

Compressors and to launch Neuro Fuzzy Logic Split Air-conditioners.

With a view to achieve self-sufficiency, build quality and reduce

manufacturing costs, Videocon Appliances makes various

components such as Moulds, Refrigerator Fan Motors, Washing

Machine Motors, Compressors, Cooling coils and Mechanism Cases.

DISH WASHER

Videocon has just launched Dish Washer model VA 1200 which has

specially designed for cleaning of utensils & dishes. This stand alone

Dish Washer can handle the toughest cleaning jobs in the Kichten.

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Videocon VCR Limited, incorporated in 1989, was promoted by the

Videocon Group with equity participation by Toshiba and Mitsubishi,

Japan, It manufactures Video Cassette Recorders and Video Cassette

Player.

The Company's hi-tech, modern manufacturing plant, located at

Bhalgaon in Aurangabad, Maharashtra, has a production capacity of

3,00,000 units per annum. The products manufactured at this plant

have earned the prestigious BS & CE approvals for export to Europe.

In fact, Videocon VCR Limited has a buy-back arrangement with

Toshiba Corporation, Japan, and it re-exports its VCR's VCPs to

Toshiba for their global marketing.

Videocon has recently launched a centre drive Video Cassette

Recorder with prodrum, and a Video Cassette player with line

recording facility, incorporating the latest in video technology like

menu driven controls for easy operation. Always at the cutting edge

of technology, Videocon VCR Limited is the undisputed market leader

today.

Incorporated in 1986, Videocon Leasing And Industrial Finance Ltd.,

was taken over and renamed by the Videocon Group in 1991.

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The company is engaged in lease and hire purchase financing, bill

discounting, prompt receipts of outstanding and lease rentals, giving

loans and advances, merchant banking and investment activities. It is

a SEBI Registered Category I Merchant Banker and has underwritten

over twenty-seven issues, acted as Lead Manager to two public issues

and Co-Manager for a rights issue. The Company is also a member of

the OTC Exchange of India.

AN ENVIABLE TRACK RECORD

Some of the Company's customers include Indian Hume Pipe Co. Ltd.,

Western Paques Ltd., Toshniwal Agrochem Ltd., V.M. Jog Construction

Ltd., South Sea Distilleries Ltd., Jain Irrigation Systems Ltd., Ashima

Fabrics and 20th Century Finance Corporation Ltd.

By Carefully assessing the credit requirements of potential customers

before sanctioning any assistance, the Company has received all

lease rentals hire purchase installments, etc. on time, achieving a

100% recovery rate.

TAKING ON THE CHALLENGE

The financial sector in India is undergoing a metamorphosis.

Liberalisation and wide-ranging economic reforms have generated

immense opportunities for established financial companies in the

private sector. With its strong operational base, Videocon Leasing And

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Industrial Finance Ltd., is poised to seize these opportunities and

forge ahead into new areas of business.

Videocon lays great emphasis on the training and development of its

work force, providing every opportunity for growth and advancement,

including training stints overseas.

1995 was a landmark year for Videocon. It clearly reaffirmed its

leadership in Colour TVs, Black & White TVs, VCRs and VCPs, Washing

Machines as well as No-Frost Refrigerators. Then Videocon began to

reach out to the core. To industries at the heart of a nation:

Petroleum, Power, Construction and Housing. Leading India into the

future. With Confidence. With determination. With a commitment to

excellence, rooted in the pioneering vision of a pathbreaker.

In the high technology area of oil field development, Videocon has the

distinction of being the first Group in the Private Sector to have been

awarded a Production Contract, in an Unincorporated Joint Venture

with Command Petroleum Limited, of Australia (presently its

successor is Cairn Energy of (UK), Marubeni Corporation of Japan and

Oil & Natural Gas Corporation Limited, India, to develop and further

explore RAVVA Oil and Gas Field in the Bay of Bengal, off the coast of

Andhra Pradesh.

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Videocon Petroleum Limited, capitalized at U.S. $20 million, has a

25% participating interest in the RAVVA Field.

Phase I of the RAVVA Development Plan, envisaging production

plateau rate of 35,000 BOPD and 0.7 MM3 of gas per day, as per PSC

has been achieved in December 1996 and maintained since then.

As many as 13 additional information obtained during development

drilling, the initial reserves have now been reassessed at an

increased level of 223 MMBBLs recoverable oil reserves (251 MMBOE

of oil and gas), more than double that was originally envisaged, and

sufficient to raise the Production Rate to 50,000 BOPD. Ten

Exploration Wells have also been drilled in the RAVVA concession

area and some of these have gone to establish additional

hydrocarbon reserves, mostly as at shallower levels, approximately 3

billion cubic meters of Gas (19.5 MMBOE). These are being assessed

in greater detail and will be taken up for development in the Second

Phase, either as Satellite Fields or new discoveries.

Onshore Gas and Oil processing facilities, Oil export lines, tanker

loading facilities, water injection and gas lift facilities have a capacity

to handle over 50,000 barrels of Oil and 70,000 cubic meters of Gas

per day.

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Joint Venture has crossed the 25 million-barrel cumulative production

mark in July 1998. Expenditure incurred is more than U.S. $300

million and gross revenue in excess of U.S. $400 million.

Oil has being sold to HPCL as Nominee of Government for refining in

the Vizag Refinery and Gas is sold to GAIL, both at International Price.

Videocon Power Limited is a new company promoted by Videocon

Group for implementation of 2 X 525 MW Power Project in Tamil

Nadu, India, at an estimated cost of Rs. 4,500 Crores.

The Videocon Group has been entrusted by the TamilNadu Electricity

Board with the implementation of Stage -II of the North Madras

Thermal Power Project. Stage II of this Coal based Project will be

located at Ennore and Puludivakkam villages in Ponneri Taluka in

Chegnai, MGR District, about 20 Km. north Of Madras. The site is

located on the seashore, along the Bay of Bengal. Just to the north of

the site is the proposed new coal handling satellite port at Ennore,

which is expected to be functional by year 1999, with an annual

handling capacity of 16 million tons of coal.

The project has received almost all clearances, such as, N.O.C. from

Pollution Control Board, Environment Clearance, Civil Aviation

Clearance, Techno-Economic Clearance by C.E.A. etc., The P.P.A. is

27


finalised between the Parties and awaits formal approvals of the TNEB

and Government of Tamil Nadu.

For the Cool requirements of the proposed project, Utkal Block `B-1'

of Talcher Coalfield has been allocated to Videocon Power Ltd., as a

captive coal mining block, by Ministry of Coal, Government of India.

Videocon has promoted a new company to mine and beneficiate the

coal. The coal Mining Company which will be managed by one of the

well known international Coal Mining Companies will also be

executing the Fuel supply Agreements with VPL. The coal will be

brought by the rail-cum-ship route to Ennore Satellite Port, adjacent

to the plant site. The project is proposed to be completed and

commissioned by the year 2000, and the entire power generated will

be sold to the Tamil Nadu Electricity Board.

Incorporated in October 1995, Holzmann Videocon Engineers Ltd.,

(HVE) is a joint venture in which Philipp Holzmann AG Germany and

Videocon are equal partners.

Philipp Holzmann AG in one of the world's largest construction

companies, with more than 150 years of experience. It carries out

and manages construction projects in the civil engineering sector,

specializing in the area of harbour construction, bridges, dams, roads,

railroads, multi-storeyed buildings, airports and industrial plants. It

has a strong presence in more than 70 countries around the world,

including the U.S.A. Half of Frankfurt has been built by the company.

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Its annual turnover is more than U.S. $10 billion. HVE's objectives are

to participate in major infrastructure and industrial projects, either as

a contractor or on a Build Own Operate Transfer (B.O.O.T.) basis.

HVE has been short listed as a contractor for the prestigious Delhi

Mass Rapid Transit System. The company is also bidding for hydro

and thermal power project. It is involved in the construction of public

building as well as residential and commercial complexes in Mumbai,

New Delhi, Pune and Goa.

HVE's head office is located at Delhi and its regional office is in

Mumbai.

AIR CONDITIONERS

As India's largest exporter of Air Conditioners, Videocon has always

been at the forefront of technological innovation. The company has

many technological first to its credit. Videocon was the first to offer

Rotary Air Conditioners and Air Conditioners with oxy-ions. Videocon

Air Conditioners can generate more negative oxy-ions, approx 10 lac

ions/cc, more than even the best nature can provide, to keep you

29


recharged and refreshed. Videocon is the first Indian company to set

up an advanced manufacturing facility in Muscat and Italy to supply

state-of-the-art Air Conditioners to global brands.

Videocon presents a state-of-the-art range of Air Conditioners

equipped with a unique Ion Recharger. The oxy-ion generator

produces negative oxy-ions to remove air-borne pollutants such as

smoke and dust particles. The positively charged atoms in the

pollutants are neutralized by negative ions released by the oxy-

ioniser. Thereby, ensuring an improved quality of air in your homes

and offices.

As India's largest exporter of Air Conditioners, Videocon has always

been at the forefront of technological innovation. The company has

many technological first to its credit. Videocon was the first to offer

Rotary Air Conditioners and Air Conditioners with oxy-ions. Videocon

Air Conditioners can generate more negative oxy-ions, approx 10 lac

ions/cc, more than even the best nature can provide, to keep you

recharged and refreshed. Videocon is the first Indian company to set

up an advanced manufacturing facility in Muscat and Italy to supply

state-of-the-art Air Conditioners to global brands.

30


Videocon presents a state-of-the-art range of Air Conditioners

equipped with a unique Ion Recharger. The oxy-ion generator

produces negative oxy-ions to remove air-borne pollutants such as

smoke and dust particles. The positively charged atoms in the

pollutants are neutralized by negative ions released by the oxy-

ioniser. Thereby, ensuring an improved quality of air in your homes

and offices.

The air we breathe is not what it used to be. Every but of smoke, dust

and pollution which has been released into our fragile ionosphere

remains suspended. And negative ions are nature's way of getting rid

of them. Since polluting chemicals are positively charged atoms, any

source that generates negatively charged atoms can neutralize them.

An oxy-ioniser replenishes negative ions, which reduce pollution and

other impurities. Thereby, recharging the air.

Videocon Air-Conditioner With Oxy-Ioniser

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From India's No. 1 Home Appliance and Consumer Electronic

Company, comes the new range of air conditioners equipped with ion

recharger. Designed to help air-borne pollution and improve the

quality of air in our homes and offices. These state-of-the-art

machines have advanced oxy-ion generators that produce negative

oxy-ions to help cut down air pollution and help you feel relaxed,

refreshed energized and recharged.

PRODUCTS

Videocon Window AC

MODEL No: VAW 1022

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0.8 TR 20 Micron anti bacterial filter Multi-directional flow Fan speed (turbo / quiet) Sleep mode function Real time clock (in LCD

remote) 24 hrs ON/OFF Timer Full function remote

Soft touch digital panel Anti-corrosive blue fins for heat

exchanger (condenser) Anti-freeze thermostat

1 yr warranty on air conditioners

Resin coating for sheet metal (internal & external)

6 yrs warranty on compressor

3 mins times delay

Technical Specification: Model No: VAW 1022

No. of rows (evaporator/ condenser)

2/2

Cooling capacity 9200 BTU/hr / 2430 Kcal/hrCompressor Type RotaryTemperature Control ThermisterMoisture Removal 1.6 ltr/hrAir Circulation (High) 360 m3/hr / 212 ft3/minWeight (NET/GOSS) 35 KgDimensions 345mm x 500mm x 490mm

MODEL No: VAW 1222

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1.0 TR 20 Micron anti bacterial filter Multi-directional flow Fan speed (turbo / quiet) Sleep mode function Real time clock (in LCD

remote) 24 hrs. On/Off Timer Anti-freeze thermostat 6 yrs warranty on compressor 1 yr warranty on air

conditioners 3 mins times delay


Full function remote Soft touch digital panel Anti-freeze thermostat

Anti-corrosive blue fins for heat exchanger (condenser)


No. of rows (evaporator/condenser) 2/2Cooling Capacity 12300 BTU/hr / 3075 Kcal/hrCompressor Type RotaryTemperature Control ThermisterMoisture Removal 2 ltr/hrAir Circulation (High) 500 m3/hr / 295 ft3/minWeight (NET/GOSS) 42 kgDimensions 325mm x 560mm x 610mm

MODEL No: VAW 1822

34


1.6 TR 20 Micron anti bacterial filter Ventillation Multi-directional flow Fan speed (turbo / quiet) Sleep mode function Real time clock (in LCD

remote) 24 hrs ON/OFF Timer Anti-corrosive blue fins for

heat exchanger (condenser) Anti-freeze thermostat 6 yrs warranty on compressor 1 yr warranty on air

conditioners

3 mins times delay

Full function remote Soft touch digital panel Auto swing Anti-freeze thermostat



No. of rows (evaporator/condenser) 2/2Cooling Capacity 18700 BTU/hr / 4675 Kcal/hrCompressor Type RotaryTemperature Control ThermisterMoisture Removal 2.9 ltr/hrAir Circulation (High) 760 m3/hr / 490 ft3/minNet Weight 63 KgDimensions 428mm x 660mm x 640mm

MODEL No: VAW 1823

35


1.6 TR 20 Micron anti bacterial filter Ventilation Multi-directional flow Fan speed (turbo / quiet) Sleep Mode Function Real time clock (in LCD


conditioners

3 Min Time Delay

Full function remote Soft touch digital panel Auto swing Anti-freeze thermostat



No. of rows (evaporator/condenser) 2/3Cooling Capacity 18700 BTU/hr / 4675 Kcal/hrCompressor Type RotaryTemperature Control ThermostatMoisture Removal 2.9 ltr/hrAir Circulation (High) 760 m3/hr / 490 ft3/minWeight (NET/GOSS) 64 kgDimensions 428mm x 660mm x 640mm

Model No: VAW 1833i

36


1.6 TR Ion recharger 20 Micron anti bacterial filter Ventilation Multi-directional flow Fan speed (turbo / quiet) Sleep mode function Real time clock (in LCD

remote) Anti-corrosive blue fins for

heat exchanger (condenser & evaporator)

6 yrs warranty on compressor 1 yr warranty on air

conditioners

3 mins times delay

24 hrs ON/OFF Timer Full function remote Soft touch digital panel Auto swing Anti-freeze thermostat


Technical Specification: Model No: VAW 1833 i

No. of rows (evaporator/condenser) 3/3Cooling Capacity 18700 BTU/hr / 4675 Kcal/hrCompressor Type RotaryTemperature Control ThermisterMoisture Removal 2.9 ltr/hrAir Circulation (High) 760 m3/hr / 490 ft3/minWeight (NET/GOSS) 66 kgDimensions 428mm x 660mm x 640mm

Model No: VAW 2434

37


2.1 TR 20 Micron anti bacterial filter Ventilation Multi-directional flow Fan speed (turbo / quiet) Sleep Mode Function Real time clock (in LCD


conditioners

3 Min Time Delay

Full function remote Soft touch digital panel Auto swing



No. of rows (evaporator/condenser) ¾Cooling Capacity 25200 BTU/hr / 6300 Kcal/hrCompressor Type RotaryTemperature Control ThermisterMoisture Removal 4 ltr/hrAir Circulation (High) 860 m3/hr / 540 ft3/minWeight (NET/GOSS) 80 kgDimensions 428mm x 660mm x 720mm

Videocon Split AC

MODEL NO: VAS T102

38


0.8 TR 20 Micron anti bacterial filter Multi-directional flow 3 Fan speed Sleep mode function 24 hrs ON/OFF Timer Auto restart

LCD remote Auto swing Silent operation Resin coating for sheet metal

(internal & external) Singer Up Mechanism


6 yrs warranty on compressor 1 yr warranty on air


Anti-freeze thermostat

Technical Specification: Model No: VAS T102

Cooling Capacity 9000 BTU/hr / 2250 Kcal/hrCompressor type RotaryTemperature Control ThermisterMoisture Removal 1.7 ltr/hrAir Circulation (High) 500 m3/hr / 300 ft3/minDBA 29Net weight (indoor) 8 kgNet weight (outdoor) 24 kgDimensions(indoor) (mm) 260mm x 785mm x 195mm

Dimensions (outdoor) (mm) 500mm x 600mm x 232 mm

39



Cooling Capacity 12000 BTU/hr / 3000 Kcal/hrCompressor Type RotaryTemperature control ThermisterMoisture removal 2 ltr/hrAir circulation (high) 500 m3/hr / 300 ft3/minDBA 32Net weight (outdoor) 8 kgNet weight (outdoor) 31 kgDimensions (indoor) 260mm x 785mm x 195mmDimensions (outdoor) 552mm x 700mm x 256mm

40

1.0 TR 20 Micron anti bacterial

filter Multi-directional flow 3 Fan speed Sleep mode function 24 hrs ON/OFF Timer Auto restart


(internal & external)


Anti-freeze thermostat 6 yrs warranty on

compressor 1 yr warranty on air

conditioners

3 mins times delay


Model No: VAS T182

1.6 TR 20 Micron anti bacterial

filter Multi-directional flow 3 Fan speed Sleep mode function

24 hrs ON/OFF Timer LCD remote Auto swing Silent operation Resin coating for sheet metal



Auto restart Anti-freeze thermostat 6 yrs warranty on


conditioners

3 mins times delay


Cooling Capacity 19300 BTU/hr / 4825 Kcal/hrCompressor type RotaryTemperature control ThermisterMoisture removal 2.9 ltr/hrAir circulation (high) 780 m3/hr / 460 ft3/minDBA 36Net weight (indoor) 14 kgNet weight (outdoor) 42 kgDimensions(indoor) (mm) 310 (h) x 1020 (w) x 195 (d)Dimensions(outdoor)(mm) 550 (h) x 760 (w) x 260 (d)

41


Model No: VAS T242

2.1 TR 20 Micron anti bacterial filter Multi-directional flow 3 Fan speed Sleep mode function 24 hrs ON/OFF Timer Auto restart

LCD remote Anti-corrosive blue fins for heat

exchanger (condenser) Anti-freeze thermostat 6 yrs warranty on compressor 1 yr warranty on air conditioners

3 mins times delay

Auto swing Silent operation



Cooling Capacity 25200 BTU/hr / 6300 Kcal/hrCompressor Type RotaryTemperature control ThermisterMoisture removal 4 ltr/hrAir circulation (high) 880 m3/hr / 520 ft3/minDBA 40Net weight (indoor) 14 kgNet weight (outdoor) 55 kgDimensions (indoor) 310mm x 1020mm x 210mmDimensions (outdoor) 650mm x 865mm x 310mm

42


Videocon Tower AC

Model No: VA 2400 SPT

1.6 TR Ion recharger 20 Micron anti bacterial

filter Multi-directional flow 2 Fan speed 24 hrs ON/OFF Timer Auto restart LCD remote Auto Swing 6 yrs warranty on



Self diagnosis function

Silent operation Resin coating for sheet metal

(internal & external) Anti-corrosive blue fins for heat

exchanger (condenser)


Technical Specification: Model No: VA 2400 SPT

Cooling Capacity 25200 BTU/hr / 6300 Kcal/hrCompressor Type RotaryTemperature control ThermisterMoisture removal 4 ltr/hrAir circulation (high) 1020 m3/hr / 600 ft3/minDBA 46Net weight (indoor) 50 kgNet weight (outdoor) 86 kgDimensions (indoor) 1900mm x 600mm x 270mmDimensions (outdoor) 600mm x 835mm x 315mm

43


Model No: RC 30 SPT

Technical Specification: Model No: RC 30 SPT

Cooling Capacity 36000 BTU/hr / 9000 Kcal/hrCompressor type ReciprocatingTemperature control ThermisterMoisture removal 7 ltr/hrAir circulation (high) 1860 m3/hr / 1100 ft3/minDBA 50Net weight (indoor) 55 kgNet weight (outdoor) 110 kgDimensions (indoor) 1900mm x 600mm x 350mmDimensions (outdoor) 600mm x 835mm x 450mm

Videocon Cassette AC

Model No: RC 30 SPCA

44

2.1 TR Ion recharger 20 Micron anti bacterial

filter Multi-directional flow 2 Fan speed 24 hrs ON/OFF Timer Auto restart LCD remote Auto swing 6 yrs warranty on



Self diagnosis function









Technical Specification: Model No: RC 30 SPCA

Cooling Capacity 36000 BTU/hr / 9000 Kcal/hrCompressor type ReciprocatingTemperature Control ThermisterMoisture Removal 7 ltr/hrAir Circulation (High) 1400 m3/hr / 825 ft3/minDBA 45Net weight (indoor) 40 kgNet weight (outdoor) 110 kgDimensions (indoor) 295mm x 870mm x 870mm

Dimensions (outdoor) 650mm x 1175mm x 450mm

Model No: VA 2400 SPCA

45


Technical Specification: Model No: VA 2400 SPCA

Cooling Capacity 25200 BTU/hr / 6300 Kcal/hrCompressor type RotaryTemperature Control ThermisterMoisture Removal 4 ltr/hrAir Circulation (High) 1100 m3/hr / 650 ft3/minDBA 43Net weight (indoor) 32 kgNet weight (outdoor) 86 kgDimensions (indoor) 295mm x 870mm x 870mm

Dimensions (outdoor) 600mm x 835mm x 315mm

46

2.1 TR Ion recharger 20 Micron anti bacterial filter Multi-directional flow 2 Fan speed Real time clock 24 hrs ON/OFF Timer Auto restart Anti-freeze thermostat 6 yrs warranty on compressor 1 yr warranty on air

conditioners 3 mins times delay Self diagnosis function LCD remote Auto swing





CHAPTER - II

RESEARCH METHODOLOGY

47


A survey has been done and data is collected from various

company`s purchase manager all over Guragon and some part

of Delhi. Primary data has been collected by interviewing

customers and purchase managers, while secondary data has

been collected from the sites of Videoconworld.com.

Sampling plan for survey

Sampling units Purchase manager and customer

Sampling size 5 companies and 200 customer

Sampling area Gurgaon

48


Questionnaire Methodology

The questionnaire has to be self administered in order to know the

exact views & some other suggestions of the purchase manager and

customers the questionnaire were administered in the form of a small

interview.

The advantages of the questionnaire method is its versatility, almost

every problem of making research can be approached from the

questionnaire standpoint. Every marketing problem involves people &

its solution can be obtained by asking these people about the

problem.

Data analysis procedure

The data has being analyzed using excel wherein various factors have

been determined & their frequencies have been measured. Some of

the factors to determine are as following.

Brands

49


The various brands selling in the market from the dealer’s point of

view the predominant brands in terms of sales, after sales services &

services provided quality etc.

Awareness level

The awareness level regarding the different types of air conditioners

is judged according to the people purchasing it.

Purchase manager and customer network

Various attributes were rated & then ranked by the purchase

manager and customer involved in purchase of the product namely,

excellent, good, satisfactory & poor and what changes they want to

improve Videocon A.C.

Positioning level

The positioning of air conditioners is judged by the total number of

customers asking for the brand name & are willing to pay for the

same. This is also termed as the pull factor.

DATA ANALYSIS AND RESULT

50


The market survey showed that the sales volume of Videocon is the

highest followed by Daikain, Carrier, Hitachi, LG and other AC

companies.

QUALITY OF AIR CONDITIONERS

51


Daikain serves as the top leader in providing best quality to its

customers, followed by Hitachi and then Videocon.

CUSTOMER CONSIDERATION OF PRICE

52


According to the market survey conducted 300 company`s manager

and customers considered price as a major determinant while buying

Videocon air conditioners, because Videocon started new scheme

“Corporate Sales”.

POSITIONING OF VIDEOCON AIR CONDITIONER IN THE MARKET

53


Amongst the dealers surveyed 41 % agreed that the positioning of

Videocon air conditioner in the market is excellent whereas 33%

feels that it is good , & 17% says that is satisfactory and remaining

13% says poor.

MAINTAINENCE OF GOOD PUBLIC RELATION

54


According to the market survey conducted, About 77% of the

correspondent say that Samsung maintains a good public relation

with its dealers whereas 23% does not have the same response.

INSTALLATION AND OPERATION

55


According to the market survey conducted, Hitachi leads the market

in providing services in terms of installation & operation followed by

Videocon, Daikain, Blue Star, Carrier, Voltas, LG and then ogeneral.

ADOPTION OF VARIOUS PROMOTIONAL TOOLS

56


Advertisement is regarded as one of the major promotional tools with

a share of 51% followed by sales promotion, personal selling and

direct marketing

MAINTAINENCE OF SUFFICIENT NETWORK

57


Amongst the Managers, dealers, Customer surveyed 79% said that

Samsung maintained a sufficient network whereas while 21%

provided negative response.

58


RESEARCH OBJECTIVE The Objective is-

To compare the superiority of VIDEOCON with other

competiting Companies in the AC’S segment.

To compare the sales volume of AC’S of different

companies.

To know which company is providing better postsale

service with low maintenance cost.

To know the cost incurred by companies in AD Campaigns.

To judge the position of VIDEOCON AC’S in the Indian

market.

59


CHAPTER-III

60


FINDINGS

The major findings of the research includes -

1.The brand awareness of VIDEOCON air conditioners is very high. In

this respect VIDEOCON have a better standing in the market as

compared to other brands. As a result it caters to a large market

share in the air conditioner market.

2.The dealer network of VIDEOCON is very strong. This implies that

VIDEOCON maintains a good public relation with its dealers and in

turn receives a good promotional leverage from its dealers.

3.The quality rating of VIDEOCON is not high. In this respect brands

like Daikain, Carrier have better rating in the market.

4.Brand positioning of VIDEOCON air conditioner is good i.e. the

position in the minds of the consumer is quite appreciable.

61


Individual findings for questionnaire are: -

Percentage of market share

VIDEOCON serves as the market leader with highest sales volume &

contributed to the affordable price of VIDEOCON air conditioners.

Best quality

Daikain is providing the best quality air conditioners with a total share

of 39% as compared to VIDEOCON with the share of 36%.

Consideration of price while buying Samsung A.C.

About 79% of the respondent claimed that customers do consider

the price of VIDEOCON air conditioners while buying, whereas 21%

says that it does not effect their purchase decision.

Positioning of VIDEOCON A.C in the market

According to the survey conducted, the Managers ,dealers of Guragon

and some part of Delhi were interviewed it was found that 41% rates

the positioning of VIDEOCON A.C as excellent, 29% claimed it as

good, where as 17% say that it is satisfactory 13% say it is poor.

62


Maintenance of good public relations with Customer

The survey conducted in Guragon shows that 77% of the dealers say

that VIDEOCON is maintaining good public relations with its

customers, where as only 23% of customers say that it is not

maintaining good public relations.

Provision of services in terms of installation and operation

Hitachi once again as serves out to be best in providing services in

terms of installation and operation followed by Videocon, Daikain,

Carrier and then Blue Star.

Adoption of various promotional tools

The most popular promotional tool is Advertising with total share of

almost 51% followed by sales promotion with a share of 27%. Further

personal selling and direct marketing being at 14% and 8%

respectively

Maintenance of sufficient network

63


The percentage of respondent who claim that VIDEOCON maintains a

good & sufficient network with its customers is about 79% and only

21% feels that VIDEOCON does not maintain a sufficient network.

64


SWOT ANALYSIS

Swot (strength, weakness, opportunity & threat) analysis of

Videocon air conditioners.

It is no doubt about the fact that Videocon is considered to be “huge

marketing success ”.

A swot analysis of its marketing function is as follows:

Strengths

Premium pricing

Focus on technology & quality

In-house manufacturing facility

Product design

Weakness

Low quality as compared to other brands

65


Little presence in “A” class area

Opportunity

Large market potential

Wide production portfolio

Consumer willingness to change brand.

Threats

Highly competitive market, therefore, a stiff competition from

domestic and other multinational companies.

66


APPENDIX

LIMITATIONS

67


The study had the following limitation mainly in the survey work that

was done.

1. The survey sample is only from a small geographical area,

Managers in Guragon & Delhi. This may result in the sample not being

true representation of the entire market for air conditioners.

2. While all attempts have been made to keep the survey free of the

bias. There may be bias introduced in a few interviews.

3. The survey was limited to few Managers, which form only a part of

the entire market, and also consider people who have AC.

CONCLUSION

1. Improvement in quality

68


The company should try to position itself as a brand, which is not only

affordable but also provides good quality air conditioners to its

customers, which will create brand loyalty in their minds.

2. Brand Positioning Through Advertisement

An advertisement in electronic medium is one of the popular medium.

The companies have always been looking forward to as it reaches its

wider audience & can create a stronger brand appeal.

The company can always announce various incentives & schemes

during the commercials. For example, free passes for a film premiere

or free installation services from the company on first come first

served basis.

Also it can feature its one of its distinguishing service that makes it a

foot ahead of its competitors for example Voltas has used “any time

service” advertisements to make a strong brand image in the minds

of the consumers.

Using a brand ambassador is another good idea to promote the brand

name of air conditioner

69


Managers

For Manager of the company can resort to one of the following ways

to increase the sales: -

1. The company should conduct separate workshops for the sales

representatives of these dealers about various Videocon

products.

2. Increase Customer`s margins & offer better schemes to these

Customer to receive good promotional leverage.

Provision of schemes & offers

The company is well placed amongst its competitors as the survey

results showed that it is best & most preferred air conditioner. So the

company should try to maintain and enhance this position by giving

more value to the customers and offering special replacement

schemes. Also the company should make provisions regarding

various financial schemes available to its customers, special off

season discounts etc.

BIBLIOGRAPHY

70


Books Consulted :-

“Journal of Marketing” April 2004, Volume 66

Kothari, C.R. “Research Methodology”, (2005), Wishwa

Publication

Kotler, Philip “Marketing Management” (2006), Pearson

Education (Singapore)

Web Sites visited: -

www.indiainfoline.com

www.videoconworld.com

www.google.com

www.indiatimes.com

71

http://WWW.INDIATIMES.COM/

http://WWW.GOOGLE.COM/

http://WWW.SAMSUNG.COM/

http://WWW.INDIAINFOLINE.COM/


Questionnaire

Hello Sir/Madam, Videocon Industries (a/c division) as a part of its ongoing Endeavour to constantly update and upgrade itself in line with the users valuable inputs & feedback, would like to know your response towards the new changed Videocon as.

COMPANY NAME & ADDRESS

Q1. Which A/C do you prefer to buy for your office/home ?

VIDEOCON LG DAIKAIN CARRIER

Q2. which model do you prefer to buy & why ? Window Split Cassette Tower

Q3. Which according to you is most interesting feature in your preferred A/C ?

Q4. On the scale of 1 to 5, please rate the following feature which affects your purchase ?

Brand Cost Cooling Efficiency

Noise Level Looks After Sales Service

Q6. Please rate the following brands on a scale of 1 to 5 ?

72


VIDEOCON LG DAIKAIN CARRIER

Brand image

Product quality

Service Backup

Value for money

Q7. Have you ever purchase/used Videocon A/C ?

YES NO

Q8. Have you noticed any recent changes in Videocon A/C ?

Q9. Do you like these changes ?

Q10. Which improvement would you suggest So as to make Videocon your 1st preferred A/C ?

Q11. Any other suggestion/Complaint/Comment on your previous Videocon purchase ?

73


Contact Persons Name :

Designation :

Phone : ` Email :

74

Documents

VISHAL JAIN