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Fatima College of Business Administration

Hubli-580023

Project report

On

Consumer electronics and Home appliances

Submitted in partial fulfillment of the requirements for the degree of

Bachelor of Business Administration

Place: Hubli

Date:

FATIMA COLLEGE OF BUSINESS ADMINISTRATION, HUBLI-23 1

EXAMINER’S CERTIFICATION

The project report of

Titled

“A detailed analysis of

Product segmentation of

Consumer electronics and home appliances”

Is approved and is acceptable in quality and form

Internal Examiner External Examiner


Acknowledgment

I forward my gratitude to the almighty God for showering His grace on me. I also thank

my parents for their support and help.

I extend my depth of gratitude to Mr. Sham Devraj, sales manager for Videocon

International Ltd Hubli, for giving me an opportunity to do my project in Videocon

International Ltd. I would like to thank all the staff members of the firm who guided,

helped and co-operated with me in completing this project. I would like to also

acknowledge my gratitude to my internal guide prof. Rajendra prasad for their kind help

and support Last but not least I would to thanks all my friends who have helped directly

or indirectly in competing this project.


TABLE OF CONTENT

1. EXECUTIVE SUMMARY

2. INDUSTRY OVERVIEW

CONSUMER DURABLE BACKGROUND

DEMAND AND SUPPLY

OUTLOOK

CONSUMER APPLIANCES

3. COMPANY PROFILE

4. COMPETITORS PROFILE

5. PROJECT OVERVIEW

THEORETICAL BACKGROUND OF THE STUDY

STEPS IN RESEARCH DESIGNING PROCESS

MARKETING MIX

4 P’S

MARKET SEGMENTATION

6. ANALYSIS

GRAPHICAL PRESENTATION

FINDINGS

CONCLUSION

RECOMMENDATIONS

LIMITATIONS OF THE PROJECT

7. ANNEXURE

QUESTIONNAIRE

BIBLIOGRAPHY


EXECUTIVE SUMMARY

INTRODUCTION

This project is carried out in Videocon International LTD. Videocon which was established in

the year 1984/85 has grown to an immense height in a very short period of time.

They work for the purpose of giving a better standard of living to their employees and to give

excellent products to their prospective customers.

The ever rising demand for the consumer goods especially in the section of Entertainment and

home appliances products has given rise to the variety of Products in this field and with rang of

brands.

Human needs are innumerable when compared to their requirement. These Innumerable human

need have given way to the development of many businesses Tycoons to venture in the field of

consumer electronics.

In present day three are many branded products like VIDEOCON, BPL, SONY, PHILIPS,

THOMSON, ONIDA, SANSUI, SAMSUNG, LG, etc…

They have ventured in the field of consumer electronics products like Television Computer

monitors, Radio, VCR, VCD, Washing Machine, Refrigerator Kitchen appliances like grinder,

mix, microwave oven, dishwasher etc…

There is a lot of competition in the present day’s consumer electronics market. Some of the

Indian companies like Videocon, BPL are facing wide and tough Competition from the foreign

companies like Samsung, LG, Thomson etc., in Product range, pricing, placing and distribution.


SCOPE OF THE PROJECT

The project was exclusively conducted for distributors and dealers of consumer durables of the

entire North Karnataka region. The time frame of this project lasted for about 2 months.

PROJECT TITLE

“A detailed analysis of product segmentation of consumer electronics and home appliances”.

OBJECTIVE OF THE PROJECT

1. To determine the fastest moving segment in the market.

2. To know which is the fastest moving brand under each segment by fixing marketing mix.

3. To know the customer perception towards the products of Videocon.

4. To study and highlight the product awareness in the market.

5. To make understand and to approach the features and the brand image to the target group

of customers.

6. To bring forth at any new happening in the consumer market which has /had a positive or

negative effect on the sales of Videocon products.

QUESTIONNAIRE ADMINISTRATION

In this project, the questionnaire was designed for dealers and distributors of Videocon as well as

their competitors of North Karnataka region.

The questionnaire was administered personally.

QUESTIONNAIRE ADAPTED WAS-

Open-ended questions

Multiple-choice questions

Dichotomous questions

DATA COLLECTION INSTRUMENT

In this project personal interview and questionnaire was adapted for collecting the data.


ANALYSIS AND INTERPRETATION

From the required data collected from the dealers and distributors by way of questionnaire and

personal interview, the necessary coding sheet was prepared. Then with the help of these coding

sheet data was analyzed and based on this analysis, conclusions and recommendations was

formulated.

SAMPLING PLAN

The study was carried out in entire North Karnataka region, which includes 10 districts namely:

Bagalkot, Belgaum, Bellary, Bidar, Bijapur, Dharwad/hubli, Gadag, Gulbarga, Koppal, and

Raichur.

SAMPLING UNIT

The sampling unit consists of Dealers and Distributors of North Karnataka region

SAMPLE SIZE

150

SOURCES OF DATA

The required data was collected from Primary data & Secondary data.

Primary data

Questionnaire method

Personal interview

Secondary data

Company broachers, Internet, Newspapers and Magazines.


FINDINGS

During the survey it came to know that 21” FLAT segment dominated the Color

Television with 40% of total sales, whereas 21% and 20% are captured by 20” and 21”

respectively.

In the Washing Machine segment 70% of sales are contributed by Semi-Automatic

segment, whereas 26% of sales are contributed by Fully-Automatic.

During the survey it came to know, that Direct-Cool segment with 73% of sales

dominates over Frost-Free segment, which has 27% of total sales.

After the survey it was found that out of 47749 Color Televisions sold per year Videocon

stood up at 4th place with 5486 numbers roughly about 11% of total Television sales,

whereas LG, Onida and Samsung has got 31%, 16% and 14% of total sales.

In Washing Machine segment out of the total 6343 Washing Machine sold per year,

Videocon stood at 3rd place with 1043 numbers coming up to 16% of total sales whereas

LG and Samsung stood at 34% and 17% of total sales.

In Refrigerator segment out of the total 18619 Refrigerators sold per year, Videocon

stood at 4th place with 2342 numbers coming up to 13% of total sales whereas LG, Godrej

and Samsung stood at 36%, 16% and 15% respectively.

The sales of 29” color television is not much in urban areas, but the consumers are

showing more interest in having it.


CONCLUSION

During the survey it was found that in Northern region of Karnataka the market segmentation of

color television, in urban areas 21”FLAT is the fastest moving brand whereas in rural area14” is

the fastest moving brand.

Whereas the demand for refrigerator direct cool is more compared to washing machine semi-

automatic as well as Televisions, so from the above points it comes to know that if the company

applies some good strategies and breaks the market according to customers needs then it can

become the No-1 company.

RECOMMENDATIONS

The company should identify segment and geographical location where competitors are

weak and cater to those segments.

Target group specification should be improved to make Videocon the fastest moving

brand.

The company should identify each group of customers on geographic location and on

basis of it; the company should have exclusive showrooms of Videocon in major

marketing areas.

To capture the rural market the company should segment all the target groups of

customers of rural market.

Offers and schemes should be revised from time to time so as to increase the sales of

each segment.

Videocon can go for product innovation so that a product appearance, features,

performance can further improved to provide customer delight.



However, the project was very structured one but still it has the following limitations.

The area into consideration was limited for the study of the project, as the considered area

and the facts collected cannot be compared at large to the entire Karnataka.

The project required analysis of different areas. With the limitations of time and

resources at disposal, it is very difficult to carry out the entire thing in full depth.

Analysis of the study is based on the assumption that information collected from the

respondent was correct.

CONSUMER DURABLES

BACKGROUND

Prior to liberalization, the Consumer Durables sector in India was restricted to a handful of

domestic players like Godrej, Allwyn, Kelvinator and Voltas. Together, they controlled nearly

90% of the market. They were first superceded by players like BPL and Videocon in the early

1990s, who invested in brand building and in enhancing distribution and service channels. Then,

with liberalization came a spate of foreign players from LG Electronics to Sony to Aiwa.

Both rising living standards, especially in urban India, and easy access to consumer finance have

fuelled the demand for consumer durables in the country. In addition, the entry of a large number

of foreign players means the consumer is no longer starved for choice. However, this has also

resulted in an over-supply situation in recent times as growth levels have tapered off.

MAJOR PLAYERS

The major players in the consumer durables industry, operating in different sectors such as air

conditioners, washing machines, refrigerators & television include:

Whirlpool of India Ltd., Philips (India) Ltd., BPL Ltd., Sony Corporation Ltd., Samsung India

Ltd., LG Electronics India Ltd., Videocon International Ltd., Thomson Ltd. & Daewoo Ltd.


DEMAND/SUPPLY

The color television (CTV) segment of the consumer durables industry has been hit by stagnant

demand in recent times. CTV manufacturers like BPL and Videocon have affected price cuts

while others have lowered production levels in the face of rising inventories. They have also

initiated drives to clear old stocks.

The results are mixed. For instance, demand for 14-inch CTVs was hit by the reduction in the

prices of 20-inch CTVs. Demand for larger sets (25 & 29 inch) has also slowed because of the

price factor. So, companies like LG and Samsung are now expected to reduce prices in the

premium categories.

As for the other segments, air conditioner demand was up in recent months. In the case of

refrigerators, a chunk of the sales are still in the direct cool segment as against the frost-free one,

But replacement buyers tend to go for technologically improved models. Hence, sales of frost-

free refrigerators have grown steadily over a period.

The washing machine market consists of two broad segments - semi-automatic and fully

automatic. The first accounts for a chunk of the market. In terms of loading type, top loading

machines sell in greater numbers than front-loading ones.

OUTLOOK

Companies like LG Electronics are exploring the online route to grow their business. It plans to

connect around 1,700 direct dealers and distributors to its recently launched B2B portal,

www.lgdealernet.com as part of its drive to become an integrated online business undertaking by

the end of 2003.

In the CTV segment, a number of new and innovative products are being launched.

Technological up-gradation and pricing are the key drivers in this highly competitive market.

Even in the case of washing machines and refrigerators, new models are being developed. In

refrigerators, companies like Electrolux (which has four established brands in Electrolux,

Kelvinator, Voltas and Allwyn) are specially targeting high-end consumers. The demand for

fully automatic washing machines is expected to increase over semi-automatic ones. In addition,

second-time buyers are likely to go in for larger machines.


Research and development is expected to be a key issue in future as players try to keep pace with

changing consumer preferences and expectations

CONSUMER APPLIANCES

The electrical industry covers a wide range of products which includes white goods i.e.

refrigerators, washing machines, air-conditioners, microwave ovens, dish washing machines,

household electrical appliances, electrical fans, electrical lamps, storage batteries, dry cells etc.

The existing production capacity is sufficient to meet the domestic demand as well as exports.

The industry has been deli censed.

Household electrical appliances are now widely used in the country and two technical aspects

specific to these products are safety and quality. Government has accordingly introduced

compulsory BIS marking in respect of certain electrical appliances, like, stoves, plugs and

sockets. Steps have also been initiated to ensure adequate testing facilities and availability of

quality raw materials and components to the manufacturers to help them in conforming to the

specified quality standards. Greater consumer awareness about the quality and safety of these

goods is also expected. For safe disposal of lead acid batteries, a notification under environment

protection act has also been issued.

Washing Machines

During the last few years, the market for consumer durables has grown tremendously. It is a fully

automatic segment, which in recent times has been getting the attention of both the

manufacturers as well as the buyers. The customer has now a plethora of excellent brands to

choose from. The trends have also indicated a shift from three to four kg capacity machines to

larger ones.

The emerging new technologies in the washing machines are aero power, triple cascade tornado

wash, digital intelligence, unique optical sensor etc. Gradually the companies are introducing

these new concepts.

Refrigerator & Air Conditioners

The refrigerator industry is highly competitive which implies a high premium on quality of the

product. Manufacturers of refrigerators have improved the quality of the product, especially the


reliability of the compressor. As far as new technology is concerned, the concept of "Frost free"

refrigerators has been gaining popularity. Non CFC (Non-Chloro-fluro-carbons) refrigerators are

being manufactured in the country but because of their high initial cost, the demand is sluggish.

As regards air-conditioners, the split air-conditioning is becoming more popular with export

orders from abroad. Manufacturers are also being encouraged to adopt environment friendly

technology, like, production of non-CFC (Non-Chloro-Fluro Carbons) based air-conditioners.

Technologically the Indian window air-conditioner industry has come a long way and is now at

par with international level. The earlier noise levels of 68 db are now down to 58 db for air-

conditioners using reciprocating compressors and even lower for those fitted with rotary

compressors. The energy efficiency ratio (EER) now being offered is 0.90 KW hr. /Tonne

compared with earlier figures of 1.2 KW hr. /Tonne. Import of capital goods for the manufacture

of non-CFC refrigerator and air conditioners are being allowed duty free.


KARMYOGI

The Late Shri. Nandlal Madhavlal Dhoot

Founder, The Videocon Group

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 and Pune. He was a successful sugarcane and cotton cultivator. As a next logical

step to vertical integration, he boldly took upon an entrepreneurial venture by importing

machinery from Europe to set up the Gangapur Sakhar Karkhana (Sugar Mill) in 1955. Those

were the times when the village did not even have electricity. Thus was unleashed an Industrial

Revolution.

The die was cast. Over the years, Nandlalji's path-breaking attitude found expression in a myriad

ways, earning him the well-deserved reputation of the pioneer of industrial activity in

Marathwadandia.

In early 80’s, Nandlalji initiated his three sons - Venugopal, Rajkumar and Pradeep into

business. Through a technical tie up with Toshiba Corporation of Japan, he launched India's first

world-class color Television: Videocon. Today, Videocon is household name across the nation-

India's No. 1 brand of Consumer Electronics & Home Appliances, trusted by over 50 million

people to improve their quality of life.

SPIRIT OF ENTERPRISE

Aurangabad…where fields of sugarcane grow tall and proud, bushes of cotton bloom and to

where tourists flock for the world-famous caves of Ajanta and Ellora. Yes, here in Aurangabad

India's No.1 Consumer Electronics and Home Appliances goods take shape to usher millions of

Indians into a better and brighter future. This is Marathwada, India, where was launched

Videocon International limited in 1984, with the avowed purpose of producing world-class Color


Television through a technical tie-up with Toshiba Corporation of Japan. Within a decade,

Videocon emerged as India's leading brand in both Color and Black & White Televisions and

continues to dominate this highly competitive market. Today the leader innovates, forges ahead

to break new grounds.

PROFILES OF LEADERSHIP

Futuristic Neuro Fuzzy Logic Washing Machines, User-friendly - No-Frost Refrigerators, the

very latest music systems. The most sophisticated Color Television and DVDs. High-Tech Air-

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

facilities spread 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.

M I S S I O N

TO KEEP EXCELLENCE IN RESPECTIVE BUSINESS FIELDS & ACHIEVE TOP

POSITION GLOBALLY OFFERING QUALITY PRODUCTS THROUGH INNOVATION,

TECHNOLOGY AT AFFORDABLE PRICE.

V I S I O N

VIDEOCON GROUP IS COMMITTED TO BRING HAPPINESS IN EVERY HOME WITH

GLOBAL PRESENCE OFFERING HIGH QUALITY "e" PRODUCTS TO EASE HUMAN

LIFE.

VIDEOCON INTERNATIONAL LTD .

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

Limited launched India's first world class Color 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 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 optimizing material inputs.

Coupled with quality-consciousness at every stage, the consumer benefits enormously by getting

premium products at affordable prices.

The company currently manufactures Color TVs, Black & White TVs and Audio products. At its

modern plant at Chitegaon and 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 contemporary international range of Kenwood 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 Color TVs for the price-conscious consumer.


GLOBAL AMBITION

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 Color TV to

Europe. Videocon is now entering world market with its operations in the Middle East, Europe,

Indonesia and South Africa.

BUSINESS PROFILE

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.

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 optimizing 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 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.

Videocon produces a sophisticated range of Home Audio Systems, Stereo Radio, Recorders and

Personal Stereos, as well as the contemporary international range of Kenwood Digital Hi Fi

Systems.

Continuous upgradation 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 Colour 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.

RECENT DEVELOPMENTS

Videocon International Ltd is charting out an aggressive marketing plan to promote its entire

`Videocon Multi-Fridge` range on the features` platform along with enhancing its marketing

services, dealer network and distribution system soon. Videocon targets its sales turnover to

touch Rs 530 crore by 2003-end from Rs 380 crore at present, through the manufacturing and

marketing of its multi-fridge range. In the 30-lakh-unit refrigerator market, Videocon aims to

look at a market share of 16 per cent in the direct-cool segment and 20 per cent in the frost-free

segment by 2003-end.

The Rs 4,000-crore Videocon group has emerged as the third bidder for Enron’s stake in the

Dabhol Power Company (DPC). However, DPC may rope in a multinational power company as

a partner since the Securities and Exchange Board of India has barred the group from accessing

the capital markets until April 2004. Videocon group’s flagship company Videocon International

has reserves of over Rs 1,450 Crore and generated Rs 450 Crore in cash from operations last

fiscal. BSES and Tata Power have already submitted non-committal bids indicating a range of

prices for a stake in DPC.

The Dhoots of the Videocon group have offered to sell their 26 per cent holding in Reasonable

Electronic Solutions, which is a joint venture between Samsung and Videocon, to the former.

Videocon International said that it would raise Rs 450 crore through private placement of 4.5

crore equity shares of Rs 100 each, within two-three months for the first phase of capacity

expansion. Sebi has barred the company from accessing the capital markets until April 2004.

Hence, it has obtained shareholder nod for raising funds via authorized capital expansion. Funds

thus raised will be used to increase its manufacturing capacity of internet Colour television plant

at Aurangabad (Maharashtra).


FUTURE PLANS

Videocon International Ltd is planning to invest Rs 50 crore in Bihar this year. The Videocon

group plans to set up a manufacturing unit, which will produce compressors. This plant will have

an annual capacity of two lakh units and nearly 50 per cent of the units will be exported to Japan

and South Korea. The Videocon group recently bought 16 per cent stake from its Italian joint

venture partner, the G Beccaria family, in Necchi Compressors for Rs 35 crore making Necchi

compressors a wholly-owned subsidiary of the Videocon group.

The Rs 3,500-crore, Videocon International Ltd is planning to invest Rs 30 Crore on brand

promotions this year. The company’s marketing strategy includes setting up exclusive Videocon

showcases to display its product range at airports, railway stations and bus stops across the

country. The CEO of the company has also added that the new marketing focus will get

Videocon, desired conversion in terms of sales and will ensure that the conversions happen at the

outlets.

FROM ELECTRONICS TO ENERGY

The Videocon group is an ever-evolving group. Continuing to set trends in every sphere of its

activities. The group enjoys an unassailable leadership position in Internet TVs, color TVs, high-

end audio systems, VCDs, VCRs, air conditioners, washing machines, Transchillers as well as

no-frost refrigerators. After firmly entrenching itself in the field of consumer electronics and

home appliances the group has boldly ventured into the business that are the crux of the nation.

Mainly, Petroleum and Power. The group has further ventured to leverage its strengths to boost

the progress of the nation. What’s more, Videocon is renowned for its technological competence

by virtue of being India’s one and only glass manufacturing company. Almost all the television

picture tube manufacturers in India source their requirements from us. In addition, Videocon has

a strong commitment spanning the rapidly surging area of Business Electronics. It aims to

revolutionize the corporate world by launching products that lend the cutting edge to business

professionals.


VISIONARIES HAVE A KEEN EYE ON THE FUTURE.

AHEAD OF TIME.

The Videocon Group is committed to creating a better quality of life for people everywhere and

to furthering the interest of society, by being a responsible corporate citizen.

Creating happiness: we bring happiness into every home, offering superior quality

consumer durables, spreading the culture of convenience, entertainment and comfort, far

and wide.

Achieving progress: we pursue innovative technologies in the field of Electronic and

Energy, create products and services that improve the quality of life, realize the goals of

the world community and protect the environment.

Sustaining growth: we are a source of pride to our business associates by ensuring

mutual prospects and growth through the implementation of forward-looking corporate

strategies, aimed at identifying opportunities and responding intelligence to the dynamics

of changes.

Pursuing excellence: we provide a conducive environment for enabling our employee to

develop there potential and make a significant contribution to the Group’s success.

HOUSING STATE-OF-THE-ART TECHNOLOGIES AND MINDS

WITHOUT WALLS.

The Videocon complexes

In touch with the developing technologies. In tune with the modern manufacturing practices.

These twin aspects are reflected in Videocon’s sprawling state-of-the-art facilities spread across

18 locations in India. The latest inclusion is the Rs. 400 million ultra-modern and environmental

friendly manufacturing facility, set up in Bangalore. It houses state-of-the-art robotic

machineries. It employs the latest European and Korean technologies to manufacture non-CFC

compressors and refrigerators. The plant is manufacturing washing machine, air conditioners and

dishwashers too. It is one of its kinds in the entire nation. Working with clockwise precision,


Videocon’s production facilities meet both qualitative and quantitative requirements. At all

times.

Even the plant at Kolkata is designed to deliver zero-defect products with the highest level of

productivity. Production equipments are mostly imported from USA, Japan, Singapore and

Europe.

The group also lays great emphasis on training of its employee. To hone their skills. To make

them very competitive. To arm them to propel the growth of the group into the future.

THE MEETING OF LIKE-MINDS IS A SYNERGY,

AN ASSOCIATION BEYOND ASSOCIATIONS.

Videocon International Limited

The year 1985 was witness to a unique collaboration. Videocon International limited in a

technical tie–up with Toshiba Corporation Japan launched India’s first world-class color

televisions. This further led into Videocon International Limited to emerge as India’s foremost

manufacturer of consumer electronic products. Today, Videocon enjoys top-of-the–mind recall

amongst millions of people across the nation with a production capacity of 2.5 million CTV”S.

The Videocon plants employ near zero- wastage technology that help reduce manufacturing costs

by optimizing material inputs. Furthermore, the company has always had a hawk’s eye on

quality. To ensure this, the company has undertaken complete backward integration to captively

manufacture all critical components like glass, electronic tuners, FBTs, ATDMs, deflection

yokes and more. This foresight led to reduced manufacturing costs, total quality control, vertical

integration and complete control over industry.

Videocon’s concerted efforts have led the company to churn out many firsts in the industry,

Picture-in-Picture, turbo sound, surround sound, larger screen sizes, the full flat square tube, the

mighty Bazoomba woofer, the world’s first Internet TV, introduction of circle surround.

Videocon International Limited is widely recognized as an innovator par excellence. Exactly

why, like a ripple effect, Videocon’s achievements in India are spreading to foreign shores too. It

is the Indian company to win the CE approval for exporting its color TV’s to Europe.


With its finger on the pulse of global demands, the company has ventured into manufacturing

and marketing its brand of products in the Middle East, Europe, Indonesia, South Africa and

South East Asia. The company also manufactures sophisticated range of products for Sansui and

Toshiba for their global markets.

VIDEOCON-THE MAKING OF AN ELECTRONIC GIANTS

Innovation is a tradition and technology a way of life

The latest plant of Videocon is the most advanced CTV plant in South Asia. Fully automated

machines assemble the components at efficiency comparable to the best in the world. The plant

utilizes highly sophisticated machines that are pre-programmed to insert components to great

speed and accuracy without involving human contact there by eliminating errors completely and

producing zero-defect TVs

VIDEOCON COMMUNICATIONS LIMITED

Promoted by the Videocon Group, the company was formed with the equity participation with

Toshiba and Mitsubishi, Japan. The company manufactures Videocassette Recorders and Video

Cassette Players, DVDs, Video CDs and CTV.

The company is also manufacturing Internet communication products.

The manufacturing plant is located at Bhalgaon in Aurangabad, Maharashtra and has a

production capacity of 3,00,000 units per annum. The products manufactured at this plant have

the distinction of earning the prestigious BS&CE approvals for export to Europe. It is but natural

that Videocon Communications Limited reigns supreme in the market.

“EARLIER SUCCESS MOTIVATES FUTURE SUCCESSESS” VIDEOCON

APPLIANCES LIMITED


WASHING MACHINES

Videocon Appliances Limited was formed in 1988, earmarking the group’s diversification into

the home appliances and this ushered in a revolution that was felt in millions of homes, by virtue

of Videocon washing machines. They liberated millions of Indian housewives from washing

clothes by hand. Its plant at Chitegaon, Aurangabad is also the only integrated washing machine

plant in India with ISO 9002 certification also, it is the second largest among Matsushita’s

licensees, worldwide.

Videocon has the onus of introducing many a first in washing machine, in collaboration with

Matsushita Electric Industrial Co. Ltd., Japan, owner of the World renowned brand, National.

The Videocon washing machine cover a wide range of technologies from top loading tumble

wash to front loading tumble wash, from pulsator to agitator, from bubble wash to multi-cascade

and advanced Neuro Fuzzy logic machines. Hence, the company offers all the technologies

present across the world. With a total production capacity of one million washing machines per

year.

It is understood without saying that Videocon is a true market leader.

AIR- CONDITIONERS

When it comes to room air-conditioners Videocon offers choices aplenty. What’s more, they are

technologically advanced too, because they are manufactured under a design and drawing

agreement with Mathsushita Electric Industrial co. Ltd., Japan, owners of the brand, National.

Videocon’s air-conditioners with Rotary compressors and Neuro Fuzzy Logic split air-

conditioners stormed the Indian market. The company has revolutionized the air-conditioning

industry by manufacturing air-conditioners that save a whopping 50% on electricity bills.

It also manufactures advanced tower and slim line air-conditioners. Videocon is one of the few

companies to make Vizzi coolers to cater to the emerging institutional market for food and

beverages. The Videocon factory near Bangalore will further boost the production capacity of

Videocon to cater to the fast growing market. Videocon’s line of air-conditioners equipped with

non-CFC compressors.


Here again, quality is the keyword. This is achieved by the in-house manufacturing of various

components such as moulds, refrigerator fan motors, compressors, cooling coils and mechanism

cases, in-house. As for the advantages, they are enjoyed all around.

REFRIGERATORS

In 1992, Videocon once again, wrote a new success story. The decadent refrigerators market

came to life with the entry of India’s first no-frost refrigerators, introduced by Videocon. This

was the result of the technical collaboration with Matsushita Refrigeration Company, Japan,

makers of the National refrigerator.

Videocon offers the widest range of refrigerators from sizes as compact as 80 litre to large

refrigerators with several doors. These refrigerators have advanced features sensi-flow system,

platinum-based deodizer, CFC-free technology, ceramic-based crisper, quick ice facility, door

chimer and air-cooled compressor. The refrigerator plants follow international quality norms

with robotic facility to ensure defect-free products. With a total production capacity of 1.5

million refrigerators per year, Videocon is amongst players in the market place.

THE PIONEERING VENTURE THAT MIRRORS AN ENTERPRISING

SPIRIT.

Videocon International Limited – glass shell manufacturing facility.

India’s first and only manufacturer of Glass Shells for color picture tube. That’s Videocon

Narmada Glass (VNG). No other company has managed to duplicate this achievement because

this is a very specialized field and incorporates sophisticated technology. Founded in 1990, the

company forged an alliance with none other than Technegals Inc., USA (formerly known as OI-

NEG TV Products Inc., USA), the world leader in Glass Shell technology and started

commercial production in mid-1994.

VNG is a US $ 112 million, 100% import substitution joint venture. The plant, located in

Bharuch, Gujarat, was started with an installed annual capacity of 1.7 million Glass Shells for

color picture tubes. Videocon has now surpassed the norms of performances guaranteed by the

collaborator, Technegals, USA and is operating the plant with efficiencies exceeding

international standards. The panel line, which had an installed capacity of 1.7 million panels,


with the dedicated efforts of our technical team and VNG Bharuch, started producing 3 million

panels and funnels per annum. In March 2001, in a record time of 11 months, second line of 3

million panels was installed. With two panel lines and one funnel line, annual capacity of VNG

has becomes 6 million sets per annum.

VNG’s list of achievements: Global standard color TV glass shells. VDE approval. Setting up of

a state-of-the-art Tool Room and a mould shop to manufacture and maintain its mould

requirements. The latter was set up in a record time and, amazingly, at less than the estimated

value.

After successfully establishing its 21”, 20” and 14” glass parts for all types of CPTs produced in

the country- plans are on the anvil to develop 21” super flat and glass parts for color display

monitor tubes.

Domestic demand for VNG glass parts in Indian market has been very strong but for global

presence, apart from meeting the domestic demand, VNG also exports glass parts to CPT plants

in Europe, Russia, Brazil and USA. Recently, VNG has signed an agreement for 1 million panels

per annum.

VNG has been instrumental in erasing the need to import glass shells by Indian CPT

Manufacturers. The glass shells of VNG save nearly US $ 112 million of precious foreign

exchange every year. With the demand for glass shells for both the domestic use and exports is

ever increasing, VNG is sure to spearhead into the future.

NATURE IS A RESERVOIR OF LIMITLESS POSSIBILITIES.

BLACK GOLD, FOR INSTANCE.

Videocon petroleum limited

The Videocon Petroleum Limited is a part of an unincorporated joint venture with Command

Petroleum Limited, of Australia, Marubeni Corporation of Japan and the Oil and Natural Gas

Corporation Limited, India to develop and further explore the RAVVA Oil and gas fields in the

Bay of Bengal, off the coast of Andhra Pradesh.


With this foray into the high technology area of oil development, Videocon has the distinction of

being the first Group in the Private sector in India to have signed Production sharing Contract

(PCS).

Videocon Petroleum Limited, capitalized at US $ 20 million, has a 25% participating interest in

the RAVVY field Phase 1 of the RAVVY Development Plan, envisaging production plateau rate

of 35,000 BOPD and 0.7 MM3 of gas per day, was completed in 1996, at a capital cost of US $

120 million.

The company has further added 13 development wells to its portfolio, many of them being

‘complicated low-angle long-reach wells’ with state-of-the-art completion. All drilled and

completed by Videocon Petroleum Limited.

The initial reserves have now been reassessed at an increased level 220 MBBLS recoverable oil

and gas equivalent of oil reserve figures twice over. The production rate was also raised to

50,000 BOPD from December 1998 onwards amounting to 7% of India’s indigenous production.

Gas production will soon be raised to 2 million NM3/day with the addition of shallow gas

production from the R22-R23 wells. With additions to Associated Gas Compression capacity,

flaring of gas has been reduced to near zero.

Oil is being sold to HPCL as Nominee of Government and gas is sold to GAIL both, at

international prices.

A 3-D Seismic Survey of the RAVVY block has been completed at the cost of US $ 10 million.

Many promising Leads and Prospects have been thrown up in areas outside of the existing

discoveries, which will further exploratory drilling could considerably increase the petroleum

reserves from the fields.

Cumulative oil production exceeds 72 million barrels fetching revenue of US $ 1500 million and

gas production exceeds 320 million cubic metes at a value of US $ 88 million.

THE MOST THERE’S A LOT OF POTENTIAL IN ENERGY.

IMPORTANT BEING TAPPING ENERGY ITSELF.


Videocon Power Limited

Videocon Power Limited has been conceived keeping in mind the need for infusing private

capital and efficiency in the Indian Power Generation Sector. Accordingly, the company is in the

process of financially closing a US $ 1.3 billion coal based 2 x 525 MWs Power Project in Tamil

Nadu. The entire power generation will be sold to the Tamil Nadu Electricity Board.

3 million tones of Coal per year will be initially imported from Australia and South Africa for

which necessary Coal Supply Agreement with internationally reputed Coal Companies exist.

After 2-3 years, most of the imported coal will be substituted by indigenous coal captively mined

from the allocated Utkal Block ‘B-1’ of Talcher Coalfield. Videocon has promoted a new

company to mine and beneficiate the coal. The Coal Mining Company will be managed by a

reputed international coal company.

Alstom Power is the EPC contractor for the project. The Project Land is already in possession

and relevant payment security mechanism in place.

VPL has also join with Cairn Energy in a 50:50 Unincorporated Joint Venture to explore 6200

sq. km. KG-OS/6 Offshore Block in water depths up to 2000 meters. After 2-D and 3-D surveys,

exploratory drillings are on. The expenditure incurred by VPL so far is US $ 20 million.

Videocon is proud to be part of this critical sector of the Indian Economy.

A MIND THAT SEEKS NEW CHALLENGES FINDS ONE THAT

STRENGTHENS ITS ABILITIES TO FACE MORE.

Neechi compressori

With the acquisition of Neechi compressori, Videocon has made an indelible mark in the global

arena and has become the first Indian group in consumer and appliances field to emerge as a true

multi-national company. The Videocon Group has proved that a single-minded approach to

achieve success leads to distinctive achievements.

Neechi compressori is one of the largest compressor-manufacturing units in the world, with a

production capacity of 10 million compressors per year. With advanced compressors, that form

the heart of a refrigerator, Neechi contributes significantly to the worldwide development of the

appliances industry.


Neechi compressori produces critical energy saving compressors as its answer to the energy

crisis, a range of compressors that could function flawlessly even in adverse condition such as

voltage fluctuations and drops.

Neechi compressori has received approval from several quality-certifying agencies for its

product quality.

Neechi compressori is a world leader today, and enjoys a pride of place amongst the Videocon

Groups of companies.

THE FUTURE STANDS FOR EXCELLENCE.

AND THAT’S OUR STRONG POINT.

Exploring new avenues. Accepting challenges head-on. Seeking new conquest, both in the

domestic and global arena. That’s the unrelenting spirit of Videocon. To be an achiever, and to

always remain thus.

The group is master minding new projects, studying the latent demands of the market place, and

addressing them. This perspective tendency is the springboard for the string of innovations that

Videocon will continue to unveil in the future.

After all, Videocon is redefining the future.

PIONEERS OF TECHNOLOGY .

Only company in the world with technology that converts sand into television.

First in India to introduce Frost Free Refrigerators. First in India to introduce Rotary

Compressors in Air Conditioners.

Pioneers in Washing Machine Technology: Introduced Semi Automatic Twin Tubs in

India.

Only one to offer Three Wash Technologies: Pulsator, Agitator and Tumble Wash.

INTERNATIONAL CERTIFICATIONS

A World Class Company with International Certifications.

ISO 9002 quality Certification.


CE Approval for exporting to Europe.

VDE Testing and Certification Institute, Germany.

UL Certification: Videocon products are certified by Underwriters Laboratories, USA,

as being compliant with International Safety Standards.

Also corresponds with British standards.

No.1 COMPANY

India's No. 1 Consumer Electronics and Home Appliances Company.

Videocon is India's Most Trusted Consumer Electronics and Home Appliances Brand. Received

the highest customer satisfaction rating across product categories. Largest seller of Big Screen

Colour Televisions. Exports of more than 1 million Colour Televisions.

Award for Excellence in area of consumer electronics from The Department of Information

Technology, Government of India for 2 consecutive years.

Largest Service Infrastructure for instant attention to consumer complaints.

WHY VIDEOCON INTERNATIONAL LTD?

HR Mission

To act as a catalyst to achieve the Organizational Goals by taking care of the Professional

Growth and Aspirations of People.

HR Vision

Creating a Performance driven Culture characterized by Competence, Pride and Commitment.

Our Strength – Our People

To be able to deliver all this, we look for key qualities when we recruit people, such as Initiative

and Drive, Intelligence, Honesty, Sincerity, Youthfulness and Dynamism.

We long for people who are self-motivating from within, which makes them excel at their work

place and compete with fellow colleagues. It enables them to shoulder more responsibilities and

be accountable.


They need to be intelligent in order to understand business and the market dynamics. Honesty

and sincerity coupled with a cost-consciousness approach increases overall growth and

productivity of Company as well as its employees.

We also look sincerely at young people with fire in their bellies and who are full of energy and

dynamism with a vision to grow. All jobs are on a fast track growth path.

BOARD OF DIRECTORS

NAME

Mr. Venugopal N. Dhoot

Mr. Naveen B. Mandhana

Mr. Lalchand Lalwani

Mr. Vishnukumar Rathi

Mr. Hariprasad Malpani

Mr. Raghunathdas Somani

Mr. S. Padmanabhan

Mr. S. S. Dayama

Mr. Nagesh Dinkar Pinge * Nominee Of ICICI

Mr. K. Sivaprakasam * Nominee Of IDBI

Mr. A. K. Ahuja * Nominee Of IFCI

*Nominees for outside directors and members of Board of Directors.

CORPORATE OFFICERS

NAME POSITION DIVISION

Mr.Sunil Tandon Vice President Marketing

Mr. Sunil Mehta Vice President CE

Mr. Pawan Kalra Vice President Home Appliances

Mr. Jyoti Shekhar Vice President HR

Mr. Jaydeep Rathore General Manager CE


Mr. Ashok Patil DY. General Manager CE

Mr. R.M.Dungarwal Asst. General Manager Accounts

Mr. Gulshankumar Arora Asst. General Manager Home Appliances

Mr. N.Ramesh Asst. General Manager MIS & EDP

Mr.Neeraj Bansal Asst. General Manager CE

Mr. Aakasdeep Arora Asst. General Manager CE

Mr. Sanjay Kumar Asst. General Manager Home Appliances

Mr. Dhiren Singh Asst. General Manager Marketing

Mr. Ajin Dutta Asst. General Manager CE and HA

Mr. Harmeet Singh Ahuja Asst. General Manager CE

Mr. Sukrit Maitre Asst. General Manager CE

Mr. Ahsan Mohammad Asst. General Manager Home Appliances

CURRENT NEWS

M a r a t h w a d a B h u s h a n S h r i V e n u g o p a l D h o o t j i

Chairman of Videocon group, Mr. Venugopal Dhoot honoured with the "Marathwada Bhushan"

Chairman of Videocon group, Mr. Venugopal Dhoot was honoured with the "Marathwada

Bhushan" by Marathwada Lokvikas Munch in a glittering ceremony held in Mumbai's Yashwant

Rao Chavan auditorium on April 2, 2005.

The Chief Minister of Maharashtra Mr. Vilasrao Deshmukh and Home Minister Mr. R. R. Patil

and Civil Aviation Minister Mr. Praful Patel presented the award. Setting aside their political

differences, leader of opposition, Mr. Gopinath Munde also attended the programme to honour

Mr. Dhoot. "He is a down to earth man who has created employment to thousands and thousands

of people," said, Mr. Deshmukh about the Videocon Chairman. Almost all local and various TV

channels carried articles about the Videocon Chairman and appreciated his work for the

upliftment of the Marathwada region. Earlier the same award was presented to Mr. Shankar Rao

Chauvan and Mr. Vilasrao Deshmukh. Mr. Venugopal Dhoot is not only a successful

businessman but he can play Flute the way he can crunch numbers of his balance sheet. He


started learning Flute Interlude when he was in the college. Whenever he gets free time, he plays

flute, which gives him peace of mind. Not only flute, he also recites Bhagwad Gita fluently. "I

believe Gita is a course of life. It's an ongoing phenomena,'' says Mr. Dhoot. "To know the core

of Bhagwad Gita I learnt Sanskrit. Like this I started getting inspiration from it,'' he adds.

"I believe in Lokamanya Tilak, Vinobha Bhave, Mahatma Gandhi. It was they who believed in

Bhagwad Gita. So, I wanted to know what exactly make them to believe in it? So I started

reading Bhagwad Gita,'' says Mr. Dhoot. "

Firstly let me tell you that I am extremely religious. I visit the temple every morning. Once I

return home, I take time off for prayer where I recite two chapters of Bhagwad Gita. In fact, I

have learnt the Bhagwad Gita by heart. I do pray and chant along with my family members for

about half-an-hour every morning. There are friends who come to me or sometimes I go to their

homes to give a lecture. Afterwards, I relax by watching TV. I watch news based programs or

discovery channel. However, On Sundays, I watch some family-based entertainment shows," Mr.

Dhoot added.

For those of us who do not know, he is also an avid golfer. Then it depends upon the time he has

at his disposal. Eight o'clock is the time for dinner and discussions with family members who are

all in business anyway. "My reading habits are also linked to religion. I mostly read books

relating to philosophies on life," says Mr. Dhoot. No wonder, with such a great leadership at the

helm, the Videocon group has reached the highest peak in the Indian corporate sector.

V I D E O C O N A C Q U I R E S T H O M S O N 'S C O L O U R P I C T U

R E T U B E P L A N T I N I T A L Y

Videocon, India's largest consumer electronics company purchased the color picture tube plant of

Thomson located at Anagni in Italy.

Mr. P.N. Dhoot and Mr. R.N. Dhoot with the Deputy Prime Minister of Italy and other

dignitaries

The Anagni plant, which employs 1,500 people and had annual sales of between 200 million and

250 million euros, was Thomson's sole color picture tube manufacturing plant in Italy.


Videocon is expanding internationally and would develop a European manufacturing base from

the Anagni plant. This move will give Videocon a head start in the European market. This color

picture tube plant will serve as European hub for Videocon operations.

Mr. P.N.Dhoot starting a new era for Videocon

The official ceremony, presided by the Deputy Prime Minister of Italy and Undersecretary Mr.

Gianni Letta took place in Rome. The ceremony was attended by representatives of Thomson

and Videocon, by the Indian Ambassador to Italy. Mr. Himachal Som, by Minister for

Production Activities Mr. Antonio Marzano, the Vice-President of Lazio region Mr. Giorgio

Simeoni, the President of Frosinone province Mr. Francesco Scalia, the Mayor of Anagni Mr.

Franco Fiorito, as well as the national and provincial secretaries of five major trade unions

organizations.

The Videocon Group plans to acquire up to 76% share in one or more oil fields in Sudan

with an initial investment of $ 100m.

Videocon International Chairman Mr. V. N. Dhoot was in Sudan earlier this week, where he

inked a MoU on mutual co-operation with the Khartoum state of the Republic of Sudan for

investing and developing projects in the oil sector.

Mr. V.N. Dhoot confirmed that he has "almost" finalized an arrangement for exploration of crude

oil through a joint venture in Sudan. He said that the amount of investment would depend on the

total project cost, which is being worked out by a team of oil experts in London. Videocon

Industries is likely to pick up between 24% and 76% in various oil fields in Sudan, he added. The

MoU was signed by Abdelhalem Ismail Almutaafi, the governor of Khartoum State of the

Republic of Sudan, and Mr. Dhoot.

Mr. Dhoot said a technical team would soon travel to Sudan to identify the areas in the Sudanese

oil business in which Videocon could participate. "The whole process will take time as we have

to follow the rules and regulations in Sudan that apply to business and foreign investments" Mr.

Dhoot Said.


He added that the arrangements in Sudan were broadly in line with the strategy of the group to

pursue its oil and gas interests, both nationally and internationally. He said Videocon

International would also look for similar arrangements in other oil -reach destinations such as

former Soviet Union, West Asia and Africa.

Videocon is a $ 1.5bn group, which focuses on manufacturing and marketing of consumer

durables. It also has a growing interest in the energy sector in India. Petrcon India, formerly

Videocon Petroleum, a Videocon group company, is part of the consortium that operates the

Ravva oil field in the Krishna - Godavari basin. Ravva is one of the major JV fields, producing

around 50,000 barrels per day of oil. It is operated by Cairn and has one of the lowest operating

costs in the world, with a cost of production less than $ 1 per barrel of crude oil produced.

Videocon International announces Q2 results 4/29/2005

Videocon International Ltd has posted a net profit of Rs 503.40 million for the quarter ended

March 31, 2005 as compared to Rs 464.80 million for the quarter ended March 31, 2004. Total

Income has increased from Rs 10452.60 million in Q2-04 to Rs 11390.80 million for the quarter

ended March 31, 2005.

Videocon International - Q2 results on Apr 29, 2005

Videocon International Ltd has informed that a meeting of the Board of Directors of the

Company will be held on April 29, 2005 to consider and take on record the un-audited financial

results for the quarter ended on March 31, 2005 and for the Half year ended on that date.


BRAND EQUITY

VIDEOCON KA SAMMAAN

HAMAARA SWABHIMAAN

THE ECONOMIC TIMES - BRAND EQUITY SURVEY VIDEOCON IS INDIA'S MOST

TRUSTED CONSUMER ELECTRONIC HOME APPLIANCES BRAND.


After studying 150 Brands and 7500 consumers, the Brand Equity survey has concluded that

Videocon is truly No. 1 brand in consumer electronics and home appliances category.

In the year 2004, Videocon moved up 13 ranks on the survey scale, leaving competitors and

other big brands way behind thereby creating a special place in the minds and hearts of

consumers across the country.


The road to No. 1 position is tough - retaining that position is tougher. Lets take this spirit of

excellence forward and set higher benchmarks for the coming year 2005.

V I D E O C O N P U B L I C I S S U E I N T H E O F FER I N G

The Board of Directors of Videocon Industries Limited approved in principle issue of Global

Depository Receipts and/or Equity Shares through Prospectus/Letter of Offer or Circular and/or

by Private Placement on preferential basis and/or on Rights basis, and/or any combination of any

or all these methods, for an amount not exceeding Rs. 2,000 crores (Rupees Two Thousand

Crores only) including premium, if any at such time, price, manner and on such terms as the

Board may, in its discretion deem fit and appropriate in one or more tranches.

The company has already initiated the process of amalgamation of Petrocon India Limited with

Videocon Industries Limited, Consequent to proposed amalgamation, the Company expects

further requirement of funds to support the consolidated activities. In addition, as a prudent

policy, the company has plans to repay the high cost debts in the post amalgamation period.

EXPERIENCE THE MAXI FRESH ADVANTAGES

Videocon has recently launched two brand new Models in Direct Cool 210 L & 215L capacity.

With the commitment towards maximum freshness, Videocon brings a change in the way Direct

Cool Refrigerators are perceived. The Refrigerators design is aimed at 'All Round Cooling'

thorough specially designed Freezer and inner chambers, Maxi Energy efficiency due to reduced

Power consumption, Maximum and long lasting freshness with humidity control crisper, Maxi

Easy Defrost control gives these Models an edge over all competitive offerings. These Models

are with a Six Years warranty.

These Models are competitively priced in the Market. Available in Stainless Steel finish, Cherry

Red, Classic Grey, Cool Blue colors.

VIDEOCON ESTABLISHES A WORLD - CLASS CRICKET ACADEMY IN KOLKATA


Indian captain Sourav Ganguly signed an MoU with V N Dhoot, Chairman of Videocon

International Limited, the country's leading consumer electronics and home appliances company,

for establishing a world class cricket academy in Kolkata at a cost of Rs One crore.

Videocon International Limited Chairman V.N.Dhoot signed an MoU with Indian cricket skipper

Sourav Ganguly on Friday for establishing a world-class cricket academy in Kolkata. Also seen

is West Bengal Chief Minister Buddhadev Bhattacharjee

The academy, to be called 'Videocon School of Cricket', would come up at the satellite Salt Lake

City Township on a five-acre plot provided by the Kolkata Metropolitan Development Authority

(KMDA).

As per the MoU, signed in the presence of West Bengal Chief Minister Buddhadev

Bhattacharjee, the infrastructure for the academy would be provided by Videocon International

Limited, while day-to-day management would be looked after by a team of professionals headed

by the talented left-hander.

Ganguly later told reporters in Kolkata on Saturday that the academy would identify and pick up

young talent in the age group of eight years and onwards and groom them to make a mark on the

world stage.

"We shall spare no effort to ensure that a truly world class cricket school comes up here," he

said. Ganguly said there is a plan to set up a residential wing to the academy in three years time.

He said that his brother Snehasish Ganguly and former Bengal cricketer Sanjay Das would be

available to guide trainees and a player with a good record in international cricket would be

appointed chief coach.

INDIA’S FIRST RUST FREE WASHING MACHINE...

Yet, another innovation by Videocon is the introduction of India's First 6.8Kg.Rust Free

Washing Machine. These machines are made from hi - strength "CP3" material which is better

than materials used in other machines in a number of ways. Following are the benefits which

CP3 material provides:

Its completely rust free, so the machine has no corrosion and longer.

It is high strength material, which is very sturdy by nature.


The CP3 material is totally shock free which makes it safe even in humid environment.

CP3 material is lightweight, which makes it easy to maneuver.

This new machine promises to be an all - in - one solution for every washing need of Indian

consumers. It provides multiple benefits to the users, and provides tremendous value for money.

THE SPIRIT OF INNOVATION

New Product Launches

Excellence in quality and innovation has always been one of Videocon's many strengths. Dealer

meets were arranged at Mumbai, Pune, Nagpur, Lucknow, Kanpur, Varansi, Bareily, Dehradun,

Jaipur, Jodhpur, Udaipur, Hubli, Mangalore, Agra, Karnal, Gazhiabad, and Hissar to launch all

new X-Lent Range of Consumer Electronics and Home Appliances products which are

manufactured with the international styling and state - of - art technology.

VIDEOCON ROSE GARDEN AT KOLKATA

Flower Power attracts Star Shower -

It was a blend of star shower and flower power on Sunday, 13th March05, evening at the Agri

Horticultural Society of India as the spotlight was shared between the sylvan greens and the

screen goddesses. Sourav Ganguly inaugurates the Videocon Rose Garden at the Agri

Horticultural Society of India

The Alipore address went berserk as Dada and the didis flew in from Mohali and Mumbai to

inaugurate the Videocon Rose Garden. With Team India skipper Sourav Ganguly leading the

loaded guest list comprising Mallika Sherawat, Mahima Chaudhuri and Sonali Bendre, the

electric and eventful half-hour was everything from a floral flood to a star stampede. Mallika

Sherawat, Sonali and Mahima enjoy the fragrance and the fan following. Over 1,400 roses of

180 varieties, from the beautiful Browneas to the bizarre Shaved Brushes, punctuated the greens

as everyone flocked to catch a glimpse of the star brigade. With the Society’s president Alka

Bangar’s promise to make the Rose Garden “one of the best in the country”, the start could not

have been more explosive.


DEALER NEWS

Excellence in quality and innovation has always been one of Videocon's many strengths. Dealer

meets were arranged at Mumbai, Pune, Nagpur, Lucknow, Kanpur, Varansi, Bareily, Dehradun,

Jaipur, Jodhpur, Udaipur, Hubli, Mangalore, Agra, Karnal, Gazhiabad, and Hissar to launch all

new X-Lent Range of Consumer Electronics and Home Appliances products which are

manufactured with the international styling and state - of - art technology.

Germ Free Homes from Videocon - Videocon understands the concern for health and hygiene

that's why Videocon had launched an entire range of Germ Free Products

The state of art Germ Free Technology of Washing Machines, Refrigerators and Air conditioners

ensures freedom from Germs.

Videocon's excellent range of Televisions and DVD Players gives unbeatable quality in Home

Entertainment. Making every Home a place where smiles and god health find their rightful place.

Videocon has launched the Germ Free Campaign across India through the dealer meets.

PRODUCTS

COLOR TELEVISION X - L E N T

42X-PZ 20X-LCD TV 29X-50 'X-LENT' 21X-50 'X-LENT'

34'' (86 cm) S EG M E N T


8503QS 8502QS

29'' (74 cm) FLAT SEGMENT

7642QS 49PJW 7632QS

BAZOOMBA FLAT BAZOOMBA FLAT

21'' (54 cm) FLAT SEGMENT

5505QS 5502QS/QST 5504QS/QST 5512QS/QST 24 CARAT TV

BAZOOMBA

21'' (54 cm) SEGMENT

5448QST 5447QS 5438QST 5455QS

BAZOOMBA BAZOOMBA BAZOOMBA BAZZON

5453QST CHALLENGER 5460QS5460QS Utsav 21

20'' (51 cm) SEGMENT


5153QST CHALLENGER 5155QS BAZZON 5127Q 5160QS

Super 51A Utsav 20

14 '' (36 cm) SEGMENT

3653QST CHALLENGER 3627QS Super 36A

REFRIGERATOR

X - L E N T

625X-FF (625L) 315X-FF (290L)


http://www.videoconinternational.com/

FROST FREE WITH DIGITAL SENSIFLOW

D231DX (210L) D275 (250L) D275DX (250L) D312(290L)

D312DX (290L) D452MFT (450L)

DIRECT COOL

S091DLX (80L) S173DLX(175L) S169(170L)


S175DX(175L) S178TT(175L) S190(190L)

S190DX(190L) S332(320L)

* New Launches

S215 (210L) S215DX (215L)

DIRECT COOL WITH WATER MATIC

S175WD (175L) S175WD DX (175L) S201WD (200L)


S261WD (240L) S332WD (320L)

WASHING MACHINE

X - LENT

80X - FA (8Kg) 60X - FT (5Kg)

FULLY AUTOMATIC

FA 71 (6Kg) FA 61 (5.5Kg) FA 55 (5Kg)


SEMI AUTOMATI


COMPETITORS PROFILE

ABOUT LG

LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Korea was

established in January, 1997 after clearance from the Foreign Investment Promotion Board

(FIPB). The trend of beating industry norms started with the fastest ever-nationwide launch by

LG in a period of 4 and ýý months with the commencement of operations in May 1997. LG set

up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998, with an

investment of Rs 500 Crores. This facility manufactured Colour Televisions, Washing Machines,

Air-Conditioners and Microwave Ovens. During the year 2001, LG also commenced the home

production for its eco-friendly Refrigerators and established its assembly line for its PC Monitors

at its Greater Noida manufacturing unit. The beginning of 2003 will see roll out of the first

locally manufactured Direct Cool Refrigerator from the plant at Greater Noida.

LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Korea was

established in January 1997 in India. It is one of the youngest consumer durable brands in the

country today, encompassing an impressive portfolio of Colour Televisions, Washing Machines,

Air-Conditioners, Microwave Ovens, Refrigerators (Direct Cool and Frost Free), PCs, Vacuum

Cleaners, optical storage devices and GSM mobile phones. During the seven years of its

existence in India, LG has earned a premium brand positioning due to its superior quality, high

product performance, revolutionary technological delivery and warm service. In fact, today LG

is recognized as a leader in setting industry norms starting with the fastest ever-nationwide reach,

latest global technology and product innovation. The company aims to achieve a turnover of Rs

7000 cr in 2004 and an enviable position in the GSM mobile phone market with plans of setting

up a new GSM plant at Pune.

The Greater Noida manufacturing unit line has been designed with the latest technologies at par

with international standards at Korea and is one of the most Eco-friendly units amongst all LG

manufacturing plants in the world.

LG has been able to craft out in five years, a premium brand positioning in the Indian market and

is today the most preferred brand in the segment. Various studies have shown that the consumer

is well informed on the health awareness front. LG was one of the first companies who


recognized the emerging change in consumer needs and decided to differentiate their products

based on technology, which appealed to the consumer based on health benefits. Its vision was to

become a 'Health Partner' for its consumers worldwide and therefore formulated its corporate

philosophy to make peoples' lives better, convenient and healthier. The CTV range offered by

LG has 'Golden Eye' technology, which senses the light levels in the room and adjusts the picture

to make it more comfortable for the eyes. The entire range of LG air-conditioners have 'Health

Air System', which not just cools, but keeps pollution out. Similarly, microwave ovens have the

'Health Wave System', refrigerators have the 'PN System', which preserve the nutrition in food

and washing machines have 'Fabricare System', which takes the health factor down to ones

clothes.

All the products offered by the company have unique technologies, developed by its R&D

departments that give customers a healthier environment to live-in.

The year 2001 witnessed LG becoming the fastest growing company in the consumer electronics,

home appliances and computer peripherals industry. The company had till the month of October

2001 achieved a cumulative turnover of Rs 5000 Crores in India since its inception in 1997,

making it the fastest ever Rs 5000 Crores clocked by any company in the Indian consumer

electronics and home appliances industry. Having achieved this milestone, LG achieved another

benchmark with the first ever sales of One Lakh ACs (Windows and Splits) in a calendar year.

LG is poised to surpass its turnover target of Rs. 2700 Crores this year and clock a turnover of

Rs. 3000 Crores.

This year, LG has emerged as the leader in Colour Televisions, Semi Automatic Washing

Machines, Air Conditioners, Frost-Free Refrigerators and Microwaves Ovens. In Colour

Televisions having set the sales target of one million units of Color Televisions for 2002, LG has

already achieved the one million mark in the month ahead of its target.

LG Electronics India is the fastest growing company in the consumer electronics, home

appliances and computer peripherals industry today. LG Electronics is continually providing

superior technology products & value for money to over 50 lakh households in India.

LG Electronics, Inc. was established in 1958 as the pioneer in the Korean consumer electronics

market. The company is is a global force in electronics, information and communications

products with 2004 annual sales of US $38 billion (consolidated). With more than 66,000


employees working in 76 subsidiaries in 39 countries around the world, LG Electronics is

comprised of four main business companies including Mobile Communications, Digital

Appliance, Digital Display, and Digital Media.

LG Electronics' goal is to enable the intelligent networking of digital products that will make

consumers' lives better than ever.

VISION 2010

“With a strong R&D and export focus, LG India intends to become a USD 10 billion company

by 2010 of which 30 per cent will be from exports. With our firm resolution to realize our

objectives, we will further consolidate our leadership position in the consumer electronics, home

appliances, IT and GSM markets,” he added.

GLOBAL TOP 3 BY 2010

LG Electronics pursues its 21st century vision of becoming a true global digital leader who can

make its customers worldwide happy through its innovative digital products and services.

LG Electronics sets its mid-term and long-term vision anew to rank among the top 3 electronics,

information, and telecommunication firms in the world by 2010.

S A M S U N G

ABOUT SAMSUNG

Ever since it was founded in 1938, SAMSUNG has continually refined its mission statement to

respond both to change in itself and in the world: "Economic contribution to the nation,"

"Priority to human resources," "Pursuit of rationalism." Each slogan represents significant

moments in Samsung’s history, reflecting different stages of the company's growth from a

domestic industrial leader into a global consumer electronics powerhouse.

In the 1990's, we once again acknowledged the need to transform our mission statement to keep

pace with our growing global operations, rapid changes in the world economy, and escalating

competition from well-established rivals.

OUR MANAGEMENT PHILOSOPHY


"We will devote our human resources and technology to create superior products and services,

thereby contributing to a better global society."

Our management philosophy represents our strong determination to contribute directly to the

prosperity of people all over the world - a single human society. Key to our efforts is our own

people, whose talent and creativity are dedicated to doing their best at all times. Technology also

plays an important role in making it possible to achieve higher standards of living and superior

products and services are what we are all about.

We believe that the success of our contributions to society and to the mutual

prosperity of people across national boundaries truly depends on how we manage

our company. Thus, we challenge the world to create the future with our customers.

Our determination is growth - a perpetual challenge - but always working within the

context of cooperation and inclusion of our customers.

Humanity must now successfully manage the opportunities and challenges resulting

from the new and quickly changing digital paradigm with equally revolutionary

changes in the rules it uses to do business. Currently, SAMSUNG Group is

undergoing changes in its business structure, management perspective and systems,

and corporate culture to meet a global standard.

We regard the digital age as having both incalculable potential and risks. It's a time

of intense competition-fortunes can be made or lost in the blink of an eye. However,

at SAMSUNG, we see challenges as opportunities. Which is one reason we believe

that we are perfectly positioned to be one of the world's recognized leaders in

digital technology.

Our commitment to being "World's Best" has succeeded in securing the number one

global market share for thirteen of our products. Our target is nothing less than to

have thirty number one "world products" by 2005, adding digital TVs, IMT 2000,

and printers to our current world market leaders-semiconductors, TFT-LCDs,

monitors and CDMA mobile phones. At the same time, we are making historic

advances in research and development of our overall semiconductor line, including

flash memory and non-memory, custom semiconductors, and DRAM and SRAM. For

example, SAMSUNG Electronics, which has been among the world's top 10 in US


patents for four consecutive years, has 13,000 researchers representing a US$ 1.7

billion investment in Research and Development.

In the financial market, SAMSUNG is also committed to being the World's Best.

SAMSUNG Card has been selected as the "Best Card Company in the New

Millennium" by Master Card, the result of securing more than 1 million members

within one year through the release of "Aha Loan Pass," the first loan-only card in

Korea. Euro money has also selected SAMSUNG Securities as the "Best Security

Company" for the 3rd consecutive year and SAMSUNG Life Insurance has ranked

as 10th largest company by Fortune's "Global 500" in the Life/Health insurance

category.

We are also actively promoting our brand value, a key engine of business growth.

Samsung’s brand value increased to US$8.31 billion in 2002 from US$6.37 billion

in 2001 and was recognized by Interbrand Corporation as the fastest growing global

brand. How did we make such astounding progress in such a short time?

One answer is that we are perpetually engaged in achieving global competitiveness

through continually improving our financial structure and profitability and looking

at the structure of our organization. Reducing production costs and working hard to

maintain our brand image have also contributed mightily to our surge. Accordingly,

SAMSUNG Electronics has secured a nation's credit rating from S&P and Moody's

while SAMSUNG Fire also has been recognized by S&P for its stability and growth

potential and has received its second consecutive A rating.

Another clue to the quick pace of our development goes to the heart of our

management philosophy "We will devote our human resources and technology to

create superior products and services, thereby contributing to a better global

society." Our active participation in various sports events around has helped

promote community spirit as well as returning corporate profits to society.

As a Worldwide Olympic partner in the wireless equipment sector for the 2000

Sydney Olympics, SAMSUNG provided 25,000 advanced digital wireless

telecommunication devices including mobile phones. We also have served in that


capacity at the 1999 Nagano Winter Olympics, and will be a Worldwide Olympic

Partner in the 2006 Torino Olympics and 2008 Beijing Olympics. We actively

participate as a contributor in the Asian Games, SAMSUNG Nations Cup Riding

Competition, SAMSUNG Running Festival, SAMSUNG World Championship (a

U.S. LPGA Tour), and many other sporting events around the world. .

In 2000, SAMSUNG started its management program with a new twist and aimed to stay ahead

of the great waves of digital changes now engulfing the world. We expect nothing less than to

lead the digitalization of society with our advanced technologies, competitive products, and

professional human resources.

Samsung is now crossing the threshold from aspiration to attainment. Each day, we are

committed to expressing. In all our products, services and activities. Why we should be

recognized as one of the world’s premier companies. We will demonstrate these top-level

qualities to everyone whose lives we touch. To our customers, partners, co-workers, shareholders

and, most importantly, to the people in our communities.

As we enter this final phase in our journey to becoming a top global competitor, we must be

aware of developments in the environment. Europe’s economic integration continues to expand,

and the North American Free Trade Agreement is creating another growing economic bloc. As

trade barriers disappear, the world is evolving into one massive economic entity. In business, the

rule of “survival of the fittest” will be played out on a global stage: the world’s top companies

will flourish and grow, while second- and third-tier players will fall behind.

A YEAR OF IMPRESSIVE ACCOMPLISHMENTS

In 2003, Samsung performed as a strong and steady pillar of the Korean economy and is poised

for the future. Thanks to the commitment and enthusiasm of our employees, we increased both

overall exports and the number of product categories in which we rank first in world market

share. In our listed companies, we consistently increased shareholder value across the board.

Equally important, a leading brand consultant rated Samsung the world’s fastest-growing brand

for the second year in a row, assigning us a total brand value over $10 billion.

This year, we begin the Next Phase by focusing on our core strengths, innovation and quality. In

every product area, from our largest drill ships to our tiniest flash memory chips, we will


continue to give customers value and services that exceed their expectations. Above all, we will

deliver a level of quality no other brand can surpass.

With this kind of success as background, we must not be tempted to become complacent. We

need to persevere, to stay focused on the long term, to pay attention to the smallest details and to

avoid being overconfident. These are the key qualities that have brought us to where we are

today.

DELIVERING SUCCESS

The Next Phase will see Samsung concentrating its resources on global leadership. Our key

efforts center on improving our knowledge, our brands and our design capabilities. We are

raising the added value our businesses provide to customers and increasing the number of our

world market-leading products. We can become the top brand in regional markets by being best

at responding to local needs. Samsung is also at the forefront in the development of next-

generation technologies. Our long-term vision is digital convergence, and in this arena, we are

firmly committed to taking a leading role. TVs, DVDs, CDs, MP3s, PDAs and PCs can be

efficiently connected and controlled in the home through cellular phones. Even home appliances

can be integrated into digital data networks. All that is needed is greater audio, data and imaging

connectivity and these three areas are among our core strengths. A significant part of our

technological leadership will be based in providing top-quality employee training, so that the

highest level of technical support can be provided for these advanced products.

Partnerships and alliances are also key to our success. Companies we compete with in one area

can work with us in other areas to our mutual benefit. We believe that in markets driven by

common standards, alliances are an important way to spur consumer acceptance and overall

success.

A COMMITMENT TO THE GLOBAL COMMUNITY

Samsung has a corporate responsibility to society, and we must demonstrate in all ways that we

are a company that truly cares about people. In our local communities, we will continue to lend


our hands and hearts to those in need. In all countries and in the world at large, our goal is to set

the example of what it means to be a good corporate citizen.

As a company, we are learning that we can remain vital only as long as we pursue our goal of

becoming one of the world’s most admired brands. This pursuit creates unmatched opportunities

for our employees to fulfill their own personal visions and ambitions as well.

The forces driving Samsung to become a top global brand are already in place: the people,

processes, partners and products. We will let nothing stand in the way of our willingness to take

on new challenges. Let us bring together our passion and our capabilities, and let us exhibit a

spirit of creativity, challenge and cooperation as we stride confidently into the Next Phase.

ONIDA

VISION STATEMENT

To be the number one brand in our chosen fields and to be recognized as one of the most

prestigious organizations evoking pride of ownership by offering unmatched quality products

through Innovation, Speed, Flexibility and Empowered Employees.

The vision is the guiding principle: a dream that is realistic, credible and achievable. Successful

leadership that results in quality performance, begins with the vision of what a leader and his/her

followers intend to accomplish.

CORPORATE STATEMENT

To benefit society at large - through innovation, quality, productivity, human development, and

growth, and to generate sustained surpluses, always striving for excellence, within the

framework of the law and with pride in ethical values

MANAGEMENT

Mr. Gulu Mirchandani (Chairman & Managing Director)

Mr. Vijay J. Mansukhani (Founder Director)


Mr. G. Sundar (Chief Operating Officer)

Mr. Sunil Kishinchandani (Vice President Supply Chain Management & Projects)

Mr. V. Chandramouli (Vice President Sales & Marketing)

Mr. Deepak Dalal (Vice President R&D)

Mr. Rajendran (Vice President Operations)

Mr. P.K. Dixit (Vice President R&D, New Delhi)

Mr. G.Krishnan (Vice President Finance)

Mr. N. Pandurang (Vice President HRM)

Mr. Jagdish B. Shahani (Vice President International Marketing)

PLANT

Onida’s principal assembly operations are conducted in a state-of-the-art plant at Wada, 80 kms

from Mumbai. The plant in Delhi caters to the production requirements for the Northern region.

Our network of 29 branch offices, 140 service centres and 35 godowns across India, enable

products to be always available on retail shelves.

At Onida, we recognize that we can strengthen our competitive edge if we produce as much as

possible from a given capacity at the lowest possible cost. We reduced the time it takes for a

single colour television to be produced from 20 seconds to 12 seconds and increased the capacity

from 0.5 million to 1.2 million sets during the year under review.

In 2002-3, we extended our manufacturing excellence a decisive step forward: by entering into

the manufacture of washing machines and air conditioners at the Wada factory, using our

existing infrastructure.

QUALITY ASSURANCE

Superior quality is the cornerstone of every Onida product. Our rigorous practices and

procedures aim at maintaining the highest quality standards at all times. We believe that a


satisfied Onida consumer is one who takes pride in ownership of our products and always

recommends Onida.

QUALITY POLICY

The company is committed to quality and strives for a continuous improvement through

innovation and human development to give the customer better value for money always.

The quality norms followed are continuously upgraded taking into account changing customer

needs.

The TQM movement being practiced has enabled process innovation. Due emphasis is given to

prevention driven activities through feedback obtained from all over.

All product reliability tests are performed with total compliance to international quality

assurance standards.

The above processes have resulted in higher levels of customer satisfaction.

RESEARCH AND DEVELOPMENT

At Onida, we recognize that a vigorously intelligent research initiative works at two ends: cost

reduction through effective process improvement, and value-addition through a sustained ability

to put innovative and customized products in line with customer needs. We have a team strength

of 64 Engineers, working from our R&D centers in Mumbai, Delhi and JVC collaborative

development center in Japan.

The team conducts research in the areas of:

Embedded Software

Industrial Design

Mechanical Engineering

Electrical Engineering

Model Shop

SOME OF OUR ACHIEVEMENTS

Movie-like experience to TV Programs with Onida KY Theatre, a home theatre built into a

television, the first such launch in the Indian television industry. The product provides a 5.1


Channel output, independent of whether the source was a mono, stereo or 5.1 channel Dolby

stereo recording, done for the first time anywhere in the world.

High picture clarity with DVMC (Digital Velocity Modulation Circuit) technology, one of the

best in the world, ensures uniform scanning at the centre and corners - the ultimate in flat TV

technology with Onida Black.

Awesome digital sound with (((KY Inside)))

The indigenous efforts of the in house R & D team helped create the `KY Inside` technology

which has become an industry benchmark in acoustic engineering for televisions.

Sustained efforts by the team have helped Onida to create a strong presence in technology-heavy

product categories including presentation products, plasmas & LCDs among others.

Exports

Onida with its Sales & Marketing office in Dubai reported a 215 per cent export growth in two

years, setting the base for an increased robust international presence.

The shipments to the Gulf contribute almost 65 per cent of Onida`s export revenue, while

shipments to the fast growing East African market (Uganda, Tanzania, Kenya and Ethiopia) and

the SAARC countries accounted for 16 per cent of exports revenues.

We introduced Home Theatres and DVDs to strengthen the Onida brand presence in these

markets and customized our model in line with its geographies of focus: models with Arabic,

Persian and Russian OSD (menu). We now plan to introduce Persian teletext for select markets.

Our products have been favoured by hypermarkets like Lu Lu Centres, Carrefours, Geants and

Dasmans in GCC countries.

PROJECT OVERVIEW

INTRODUCTION

This project is carried in Videocon International LTD. Videocon was established in the year

1984/85. It has grown to an immense height in a very short period of time.


They work for the purpose of giving a better standard of living to their employees and to give

world-class products to their prospective customers.

The ever rising demand for the consumer goods especially in the section of Entertainment and

home appliances products has given rise to the variety of Products in this field and with rang of

brands.

Human needs are innumerable when compared to their requirement. These Innumerable human

need have given way to the development of many businesses Tycoons to venture in the field of

consumer electronics.

In present day three are many branded products like VIDEOCON, BPL, SONY, PHILIPS,

THOMSON, ONIDA, SANSUI, SAMSUNG, LG, etc…

They have ventured in the field of consumer electronics products like Television Computer

monitors, Radio, VCR, VCD, Washing Machine, Refrigerator Kitchen appliances like grinder,

mix, microwave oven, dishwasher etc…

There is a lot of competition in the present day’s consumer electronics market. Some of the

Indian companies like Videocon, BPL are facing wide and tough Competition from the foreign

companies like Samsung, LG, Thomson etc, in both Product range, pricing, placing and

distribution.

PROJECT TITLE

“A detailed analysis of product segmentation of consumer electronics and home appliances”.

OBJECTIVE OF THE PROJECT

1. To determine the fastest moving segment in the market.

2. To know which is the fastest moving brand under each segment by fixing marketing mix.

3. To know the customer perception towards the products of Videocon.

4. To study and highlight the product awareness in the market.


5. To make understand and to approach the features and the brand image to the target group

of customers.

6. To bring forth at any new happening in the consumer market which has /had a positive or

negative effect on the sales of Videocon products.

QUESTIONNAIRE ADMINISTRATION

In this project questionnaire was designed for dealers and distributors of Videocon as well as

their competitors of North Karnataka region.

The questionnaire was administered personally.

QUESTIONNAIRE ADAPTED WAS

Open-ended questions

Multiple-choice questions

Dichotomous questions

DATA COLLECTION INSTRUMENT

In this project personal interview and questionnaire was adapted for collecting the data.

ANALYSIS AND INTERPRETATION

From the required data collected from the dealers and distributors by way of questionnaire and

personal interview, the necessary coding sheet was prepared. Then with the help of these coding

sheet data was analyzed and based on this analysis, conclusions and recommendations was

formulated.

SAMPLING PLAN

The study was carried out in entire North Karnataka region, which includes 10 districts namely:

Bagalkot, Belgaum, Bellary, Bidar, Bijapur, Dharwad/hubli, Gadag, Gulbarga, Koppal, Raichur.


SAMPLING UNIT

The sampling unit consists of Dealers and Distributors of North Karnataka region

SAMPLE SIZE

150

SOURCES OF DATA

The required data was collected from Primary data & Secondary data.

Primary data

Questionnaire method

Personal interview

Secondary data

Company broachers, Internet, Newspapers and magazines.

THEORETICAL BACKGROUND OF THE STUDY

MARKETING RESEARCH

INTRODUCTION

Good instincts and intuition certainly play important roles in business. But gut feelings about

your customers’ needs and preferences are not enough. If you want to minimize risk and improve

your chances of success, you need sound, objective data. That is where market research comes

in.

Market research is the process of collecting and analyzing information about the customers you

want to reach, called your target market. This information provides you with the business

intelligent you need to make infirmed decisions. Market research can help you create a business


plan, launch anew product or service, fine tune your existing products and services, expand into

new markers de4vlops and advertising campaign, set prices are select a business location.

IMPORTANCE OF MARKETING RESEARCH

Marketing research helps the marketer to pick and choose customers, and make focused

offers.

It helps to know which products move in the market and why.

Helps new entrant plan their channel by studying existing ones.

FUNCTION OF MARKETING RESEARCH

The function of marketing research is to provide information that will assist marketing managers

in recognizing and reacting to marketing opportunities and problems. In essence, marketing

research exists to help marketing managers make better decisions.

DEFINITION

Marketing research is the function, which links the consumer, customer, and the public to the

marketer through information.

According to Phillip Kotler “marketing research is systematic problem analysis, model building

and fact finding for the purpose of decision making and control in the marketing goods and

services”.

According to American Marketing Association, “marketing research is the systematic gathering,

recording and analyzing of data about problems relating to the marketing of goods and services.”

According to Green and Tull “marketing research is the systematic and objective search for and

analysis of information relevant to the identification and solution of any problem in the field of

marketing”.


STEPS IN THE RESEARCH DESIGN PROCESS

In applying marketing research for solving marketing problems, the researcher has to go through

several steps. Each steps has its own decisive role in the total process. Right from defining the

problem, down to the preparation of the report, the researcher has to proceed step by step.

The steps are as follows:

1) Define the research problem.

2) Estimate the value of information

3) Select the data collection approach

4) Select the measurement technique

5) Select the sample

6) Select the methods of analysis

7) Evaluate the ethics of the research

8) Estimate the time and financial requirements

9) Prepare the research proposal


Estimate the value of information.


Define the research problem.

Select the data collection method(s).

Select the measurement technique.

Select the sample.

Select the method/s of analysis.

Evaluate the ethics of research

Estimate the time and financial requirements.

Prepare the research proposal

1.Define the research problem

Problem definition is the most critical pert of the research process. Research problem definition

involves specifying the information needed by management. Unless the problem is properly

defined, the information produced by the research process is unlikely to have any value.

2. Estimating the value of information

A decision marker normally approaches a problem with some information. If the problem is, say,

whether a new product should be introduced, enough information will normally have been

accumulated through past experience with other decisions concerning the introduction of new

products and from various other sources to allow some preliminary judgment to be formed about

the desirability of introducing the product in question. There will rarely be sufficient confidence

in these judgments that addition information relevant to the decision would not be, accepted if it

were available without cost or delay. There might be enough confidence, however, that there

would be unwillingness to pay very much or wait very long for the added information.

3. Select the data collection approach

There are, three basic data collection approaches in marketing research:

a) Secondary data,

b) Survey data, and

c) Experimental data.

Secondary data were collected for some purpose other than helping to solve the current problem.

Whereas primary data are collected expressly to help solve, the problem at hand.

Survey and experimental data are therefore secondary data if they were collected earlier for

another study; they are primary data if they were collected for the present one.


4. Select the measurement technique

There are four basic measurement techniques used in marketing research:

a) Questionnaires,

b) Attitude scales,

c) Observation, and

d) Depth interview and projective techniques.

As was the case with selecting the data collection method, selection of a measurement technique

is influenced by the nature of the information required and secondarily by the value of the

information. Selection of the measurement technique interacts with both the preceding and

following steps in the design process. For example, it is difficult or impossible to use many

projective techniques in telephone interviews. Similarly, it is impossible to use complex

questionnaires or scales with young children. Selection of the appropriate measurement

technique requires the simultaneous consideration of other characteristics of the research design.

5. Select the sample

Most marketing studies involve a sample or sub group of the total population relevant to the

problem, rather than a census of the entire group. The population is generally specified as apart

of the problem definition process.

As was indicated in the previous section, the sampling process interacts with the other stages of

the research design. For example, in most statistical techniques, probability-sampling techniques

are assumed. Therefore, the use of non-probability samples restricts the types of analyses that

can be performed.

6. Select the method of analysis

Data are useful only after analysis. Data analysis involves converting a series of recorded

observations into descriptive statements and/or inference about relationship. The types of

analyses that can be conducted depend on the nature of the sampling process, the measurement

instrument and the data collection method.


7. Evaluate the ethics of the research

It is essential that marketing researchers restrict their research activities to practice that are

ethically sound. Ethically sound research considers the interests of the public, the respondents,

the client and the research profession as well as those of the researcher.

While it is tempting to use simple ethical guidelines such as “Don’t do anything you wouldn’t

want to explain on the six O’ clock news”, the issues that arise in research often too complex for

such simple advice. For example, what are the ethics of rounding versus not rounding numbers in

research reports?

8. Estimate time and financial requirements

Once the research design has been devised and checked for ethical soundness, the researchers

must estimate the resource requirements. These requirements can be broken down into two broad

categories- time and financial. Time refers to the time needed to complete the project. The

financial requirement is the monitory representation of personnel time, computer time and

material requirements. The time and finance requirements are not independent. As we shall see,

on occasion, time and money are interchangeable.

9. Prepare the research proposal

The research design process provides the researcher with a blue print, or guide, for conducting

and controlling the research project this blue print is written in the form of a research proposal. A

written research proposal should precede any research project. The word precede may be

somewhat misleading. Obviously, a substantial amount of research effort is involved in the

research planning process that must precede the research proposal. The research proposal helps

ensure that the decision maker and researcher are still in agreement on the basic management

problems.

MARKETING MIX


The concept of marketing mix is an important element in the field of marketing the steps taken

by a business enterprise to improve sales is known as marketing effort. Therefore marketing

efforts is not a single function but a combination of many different activities undertaken by a

firm to market its products. All the marketing efforts center around the consumer because of the

consumer orientation of the modern marketing for this management should first select its market

targets identify the demand for its products and collect basic information relating to consumer

behavior and the intensity of trade competition then it should develop a programmer in the needs

of the customer and the challenge of the competitors.

DEFINITION:

“The marketing mix refers to the apportionment of efforts, the combination, the designing and

the integration of the elements of marketing into a program or mix which, on the basis of an

appraisal of the market forces will best achieve the objective of an enterprise at a given time.

Thus the marketing mix is integration of marketing elements”.

ELEMENTS OF MARKETING MIX:

The definition cited above clearly indicates the four components of marketing mix that are

PRODUCT, PRICING, PHYSICAL DISTRIBUTION or PLACE and PROMOTION. This Mc

Cathy has popularized as four factors classification of marketing tools called as four P’s.

THE PRODUCT

A product can be a good, a service or an idea. The actual physical production of a product is not

a marketing activity. However, marketers have to research consumer’s product wants and design

products to achieve the desired characteristics. They may also create a dalter packages and brand

names, this aspect of the marketing mix is known as the product variable. Product variable

decisions and related activities are important because they are involved directly with providing

want satisfying set of products that will help the organization to achieve its goals. A marketer

must be able to develop new products, modify existing one’s eliminate those that no longer

satisfy and yield acceptable profits. A product should be developed with utmost care as to fit into


the market to cater to the needs of the customer, while developing product it is necessary to in

built the following features.

1. The product should have tangibility to the possible extent, which should make the buyer to

see, feel or experience it.

2. A product should be associated with certain attributes, which facilitate its identification or

distinction through brand name, trademark, packaging guarantee or warrantee.

3. The product should have an exchange value for the smooth transaction between buyer and

seller for a consideration.

4. A product should have the want satisfying capacity to the targeted market in other words it

should suit the requirements of the buyer.

THE PRICE

Price often is used as a competitive tool. In the era of the price variable, marketing managers

usually have a head in establishing pricing policies and determining product prices. Price is

important to consumer because they are concerned in the value obtained in an exchange price. It

also helps establish a product image distribution variable.

Pricing policy is determined by following:

A. What the buyer will pay

B. The position of the product in the market

C. Nature & strength of the competition

D. The life cycle of the product

E. The image of the product

F. The patent position

G. The market objectives in the market context

H. The cost of producing the product

The pricing objectives of a firm may include profit maximization, sales or market share

maximization, target venture on investment meeting or preventing competition, maintaining


stable prices, resource mobilization speedy cash collect sales promotion and expansion of the

company. For the purpose of achieving these objectives prices are to be determined in the light

of the other components of the marketing mix.

Prices may be determined on the basis of

1) Cost of productions

2) Demand for the product

3) Competitors price

4) Government policy and

5) The over all economic conditions

Therefore, a marketing manager while determining the price mix in the over all marketing mix. It

should take at most care with the internal and external feeling that influence his marketing

activities and fix the price in such a way that suits both his company objectives and the

consumer’s expectations.

THE PLACE

To satisfy consumer, products must be available at the right time in a convenient and accessible

location. In dealing with the distribution variable, a marketing manager attempts to make

products available in the quantities desired to as many customer as possible and in the total

inventory, transportation, and storage costs as low as possible. Product should move from the

place of manufacture to the place of consumption to facilitate the customers to consumer as and

when they like. Products can be delivered in different ways like auction selling, tender selling,

selling across the table, selling across the counter, selling at the door step, selling over internet or

appointing salesman, sales agent, dealers, distribution whole seller and dealers.

Place mix decision involves issues related to the channel of distribution and the physical

transportation involves issues related to the channel of distribution mix is to achieve.

A. Facilitate easy selection of goods

B. Minimum incidence of breakage or damage during transportation storing.

C. Minimize the cost of distribution


D. Effective promotion of the company’s and middlemen’s business

E. Proper display and storage of the product

F. Free from coming hazards to the environment

G. Motivation and proper co-operation among the people involved.

THE PROMOTION

Promotion is the process of stimulating demand for the products of a company through a well-

planned communication system. It is to facilitate exchanges by informing one or more groups of

people about an organization and its products.

In present market conditions where there are number of manufacturers of a single product with

slightly differentiated product and there is a non price war through brand names and non physical

attributes of the product, promotion plays a very significant role in personalizing the buyers to a

certain product marketers usually adopt persuasive communication through advertising,

publicity, personal selling, sales promotion and advertising. The promotion mix is concerned

with creating interest and awareness about the product increasing trifles, purchase, widening

usage, increasing brand loyalty and gaining intermediate support for marketing the product. With

the emergency of the services marketing and new trends, marketers are required to develop all

these elements very carefully as to suit the requirement of the market situation so as to facilitate

the company to sell the product and to help the customers to enhance there satisfaction and value

for the money. The marketing management process consists of marketing opportunities,

researching and selecting target markets designing marketing strategies planning marketing

programmers and organizing implementing and controlling marketing efforts. Marketing strategy

consists of basic decision on marketing expenditure, marketing mix and marketing allocation.

Marketing mix is the set of marketing tools that the firm uses to pursue its marketing objectives

in the target market McCarthy popularized a four-factor classification of these tools the four P’s:

product price, place and promotion.


MARKETING SEGMENTATION

Market for any product consists of a number of buyers whose needs and wants are

heterogeneous, but the company usually after one or a limited number of products. Unless the

needs and wants of the market are met properly, no seller can stay in any market. Therefore, it is

necessary to understand what the customer likes and to produce the product accordingly or to

concentrate on a market where there are people to buy the product what the company produces.

The process of identifying the market where the product matches or preparing the product

according to the expectations of a certain market is called segmentation and the act of

concentrating activities to satisfy one selected market is called targeting.

Market segmentation is the process of sub dividing a market into distinct group of consumers

who have substantial degree of homogeneous characteristics and also a greater degree of

resemblance in their needs and these groups of consumer can be identified for offering better

marketing services.

In other words, market segmentation is the process of identifying groups of buyer with different

buying desires or requirements to match with the needs of the different customers.

Benefits of segmentation

Segmentation reflects reality in marketing situation. There may be different demand curves in

different segments. There may be certain customer needs, which are not met. This analysis can

yield profits and prospects for growth. Segmentation ensures higher customer satisfaction and

improves effectiveness of the marketing program.

It offers the following specific benefits:

1. Understanding the needs of the customers

2. Better position to spot marketing opportunities.

3. Allocation of marketing budget.

4. Meeting the competition effectively.

5. Effective marketing programs.

6. Choosing of advertising media.

7. Increasing sales volume.


8. Better utilization of marketing resources.

9. Minimizes aggregation risk.

10. Provides opportunities to expand market.

11. Helps create innovations.

PHILOSOPHIES OF SEGMENTATION.

The marketers adapt several approaches to segmenting a market based on there capacity (through

SWOT analysis) to compete in the market where the company can sell its product, segmentation

points out the potential strengths and opportunities for better understanding of the marketers.

Rather than fight against all the competitors, a company might decide to fight a few or avoid

confrontation by creating niches. Everything depends upon the philosophies of the marketing.

Product Variety Mkt. Micro Marketing

Mass Target Customized Personalized Marketing Marketing Marketing Marketing

The two extremes of segmentation philosophies

APPROACHES TO MARKETING SEGMENTATION

1. Mass marketing

2. Product variety marketing

3. Target marketing

4. Micro marketing

5. Customized marketing

6. Personalized marketing


MASS MARKETING: before the onset of the marketing age, there was wide spread adoption

of mass marketing, mass production, distribution and promotion. That is, offering the same

product and applying the same marketing mix to all consumers assuming that there is no

significant difference amongst consumers in terms of there needs and wants. The marketers felt

that the consumer’s differences in education, income, experience, lifestyle, etc. This type of

marketing is well suited for fruits, vegetables, over-the-counter-drugs, chocolates, bakery items,

etc.

PRODUCT-VARIETY MARKETING: Once it is learnt that consumers would not accept

standard products, the marketer might try to provide different sizes, colors, shapes, features and

qualities to attract them. The product variety approach satisfies a customer more than

standardized one-model products. The product variety approach doesn’t call for proper

segmentation of the market. This is carried by the target marketing.

TARGET MARKETING: The modern marketing concept starts with the definition of target

markets. The target marketing has its root in the marketing age. Target marketing helps the

marketer to correctly identify the markets- the group of customers for whom the product is

designed.

MICRO MARKETING: Micro-marketing occurs when target market in further bifurcated and

the needs of the small customer groups are addressed on a local basis. Thus, even though target

customer has been identified in the target marketing some specific modern styles/features

products are made available at select places on a local basis.

CUSTOMIZED MARKETING: The focus of the target marketing is further shifting form local

basis to individual customer basis. With the advancement in manufacturing because of

breakthrough in information technology, it has now become possible to manufacture a product as

per the individual customers needs or of a buying organization.


PERSONALIZED MARKETING: Mass production, mass production with product varieties,

and target marketing for segments, which are further divided into customers on a local basis or

on individual customer needs, the focus of the company in shifting more minutely. In case of

customized marketing even if the requirements of a customer are met by a custom-made product,

the customer might not be willing to retain his loyalty with the company because of competition.

BASES FOR SEGMENTING CONSUMER MARKETS.

The following figure shows the basis used for segmenting consumer markets.

Bases for segmenting consumer markets

Consumer Consumer Characteristic response

Geographic psychographicDemographic

Occasions Benefits Status Buyers stage

User status Usage rate Attitude

Two broad groups of variables are used to segment consumer markets. They are consumer

characteristics and consumer response or behavior. Under consumer characteristics there are

three main bases for segmentation. They are:

1. GEOGRAPHIC SEGMENTATION: This calls for dividing the market into different

geographical units such as Nations, States, regions, Countries, cities. The company can

operate in one or a few Geographic areas or operate in all but pay attention to local

variations.

2. DEMOGRAPHIC SEGMENTATION: In this the market is divided into groups on

the basis of variable such as age, family size, family life cycle, gender, income,

occupation, education, religion, race, generation, nationality and social class.

Demographic variable are the most popular bases for distinguishing customer needs.


a. Age and life cycle stage: consumer wants and abilities change with age. On the

basis of age, a market can be divided into 4 parts viz., children, young, adults

and old. For consumers of different age groups different types of products are

produced.

b. Gender: Gender segmentation has long been applied in clothing, hair styling,

cosmetics and magazines.

c. Income: Income segmentation is a long-standing practice in such product and

service categories as automobiles, clothing and travel.

d. Generation: Many researchers are now turning to generation segmentation.

Each generation is profoundly influenced by the times in which it grows up-the

music, movies, politics and events of that period.

e. Social class: It has a strong influence on preference in cars, clothing, home

furnishing, leisure activities, reading habits, etc. Many companies design

products and services for specific social class.

3. PSYCHOGRAPHIC SEGMENTATION: In this segmentation, buyers are divided

into different groups based on life-style or personality and values. People within the

same demographic group can exhibit many different psychographic profiles.

a) Life-style: People exhibit different life-style and goods they consume express

their life-style. Many companies seek opportunities in life-style segmentation.

b) Personality: Marketers have used personality variables to segment markets.

They endow their products with brand personality that corresponds to consumer

personalities.

c) Values: Some marketers segment by core values, that is belief systems that

underlie consumer attitudes and behavior. Core values go much deeper than

behavior or attitude and determine, at a basic level, people’s choices and desires

over the long term.


MARKET SEGMENT SELECTION

Once a marketer has evaluated the different segments for their size, growth, and attractiveness,

and found that they are compatible with the company’s objectives and resources, the obvious

step is to go for selecting the market segments. Philip Kotler has suggested five patterns for

target market selection:

1. Single segment concentration

2. Selective segment specialization

3. Market specialization

4. Product specialization

5. Full coverage

SINGLE SEGMENT CONCENTRATION: The Company can have strong market position,

greater knowledge about segment-specific-needs, specified reputation and probable leadership

position. The concentrated marketing strategy normally provides higher returns and therefore it

is possible that competitors will be attracted to find their place in segments.

SELECTIVE SEGMENT SPECIALIZATION: This is known as multi stage coverage

because different segments are sought to be captured by the company.

MARKET SPECIALIZATION: Here the company takes up a particular market segment for

supplying all relevant products to the target group.

PRODUCT SPECIALIZATION: Product specialization occurs when a company sells certain

products to several potential customers wherever they are located.

FULL COVERAGE: It is very difficult to serve all segments of the market. Big companies can

go for full market coverage.


MARKET SEGMENTATION STRATEGIES

Depending upon the emerging patterns of market segmentation, homogenous preference and

cluster reference diffused preference, a company chooses its market segmentation strategy.

a) UNDIFFERENTIATED MARKETING: It is a market coverage strategy in which the

company treats the target market a one and doesn’t consider that there are market

segments that exhibit common needs. The company focuses on the center of the target

market to get and maximum advantage.

b) DIFFERENTIATED MARKETING: It is a market coverage strategy in which the

company goes for proper market segmentation as depicted by its analysis of the total

market. The company, therefore, goes for several products or several segment approach,

which calls for preparing different marketing-mixes for each of the market segment.

c) CONCENTRATED MARKETING: It is a market coverage strategy in which company

follows one product-one segment principle. The company tries to position its product in

the middle of the segments to attract maximum clientele.


PRODUCT POSITIONING

Product positioning means ‘a marketing strategy aimed at aligning companies products relative

to competing products through product design and communication so as to elicit from consumers

favorable product perception compared to the computing products.’

Philip kotler defines positioning as “an act of designing the company offer so that it occupies a

distinct and valued place in the mind of the target customers.”

Bovee defines, as “it is the process of prompting buyer to form a particular mental impression of

our product relative to our competitors.”

The product image usually results from the marketing communication developed by company

and the way in which the consumer perceives it. Positioning is a creative exercise of applying for

a slot in the minds of the customer, it is not what the company does to a product, but it is what it

does to the customer’s mind to make him remember and associate the product with him.

Positioning decisions are very important as they influence the purchase to be associated to build

upon and emphasized six approaches namely:

1) Positioning with respect to a competitor.

2) Positioning by attributes.

3) Positioning by price and quality.

4) Positioning with respect to use or application.

5) Positioning by the product user.

6) Positioning with respect to a product class.

The most frequently used positioning strategy is to associate a product with an attribute, a

product feature or customer benefit. For example Bajaj’s value for money, Toyota’s economy

and reliability or Ambassador’s hundred percent indigenous characters and claims make that

product different from others. A product can be associated with one or more attributes, for

example Colgate became a dominant brand by positioning it self as cavity fighter, a position

supported by a medical group endorsement in the advertisement.

Positioning can also be made by highlighting the price and positioned even by associating them

with a use or application. For example cold creams are associated with cold season and golden


ornaments are associated with marriages. Product user positioning is one where the user or a

class of users is associated with the product.

Product class can also be used, as a means for positioning, for example Maxim freeze dried

coffee needs to be positioned with instant food. Costly neck ties can be positioned costly suiting

positioning with respect to competitors can be made by comparative advertisement by

highlighting the attributes of the product possessed by our product, which is not available in the

competitor’s product. By giving a different version or emphasis a new image for ones product

can be developed on the basis of the claims made by the competitors.

Making an advertisement or claim different can make thus positioning from that made earlier or

those made by the competitors, by highlighting the product features not highlighted so far by the

company or by the competitors or by entering into a market segment not covered by the company

or by its competitors. Videocon, which is the major player in the consumer electronics products,

have employed this marketing mix strategy very effectively to compete in the world of

competitive business world.


ANALYSIS

Which are the brands you deal with?

LG Samsung Videocon Onida Philips BPL

Sansui Akai Godrej Whirlpool Electrolux

Others ________________


What are the counter sales of each brand from your outlet (Yearly)?

Total sales of Color Television in North Karnataka

District OutletsLG SS VideoconOnidaBPL PhilipsSansuiAkai OthersTotal

Gulbarga22 3024 972 647 1950 180 244 747 625 158 8547

Bidar 10 1346 655 115 388 0 519 129 150 0 3302

Raichur 17 1706 856 381 676 0 194 273 216 424 4726

Bijapur 6 561 108 340 302 252 28 50 72 0 1713

Bagakot 9 360 165 316 180 100 43 151 21 21 1357

Belgaum 27 2008 1296 820 1303 662 208 352 136 640 7425

Dharwad 25 1872 1540 1706 2066 230 820 777 259 885 10155

Haveri 9 518 453 468 338 64 288 561 60 201 2951

Gadag 14 754 192 496 122 79 475 331 150 345 2944

Koppal 5 396 187 17 165 21 136 72 21 36 1051

Bellary 10 1555 396 180 208 10 129 806 266 28 3578

Total 154 1410068205486 7698 15983084 4249 19762738 47749



Total sales of Washing Machines in North Karnataka

Districts Outlets LG Samsung Videocon Onida Whirlpool Electrolux Others Total

Gulbarga 22 359 215 165 236 143 36 0 1154

Bidar 10 331 57 100 79 28 57 0 652

Raichur 17 165 100 36 72 21 0 0 394

Bijapur 6 28 0 15 0 14 0 0 57

Bagakot 9 36 43 28 14 14 14 0 149

Belgaum 27 273 216 57 122 28 50 0 746

Dharwad 25 295 388 482 115 316 21 237 1854

Haveri 9 7 14 58 0 14 0 0 93

Gadag 14 108 21 72 8 28 7 0 244

Koppal 5 7 0 14 0 7 0 0 28

Bellary 10 554 14 16 388 0 0 0 972

Total 154 2163 1068 1043 1034 613 185 237 6343



Total sales of Refrigerators in North Karnataka

District OutletsLG SamsungVideoconGodrejWhirlpoolElectroluxOthersTotal

Gulbarga22 1604337 323 496 316 0 0 3076

Bidar 10 828 208 72 331 0 0 0 1439

Raichur 17 691 518 108 367 460 0 0 2144

Bijapur 6 288 180 180 72 108 36 0 864

Bagakot 9 259 79 7 172 64 129 0 710

Belgaum 27 856 424 266 540 36 151 0 2273

Dharwad 25 1036784 871 885 590 424 252 4842

Haveri 9 165 100 160 72 28 72 14 611

Gadag 14 273 28 172 9 100 16 14 612

Koppal 5 57 21 24 28 108 0 4 242

Bellary 10 770 230 159 86 540 21 0 1806

Total 154 68272909 2342 3058 2350 849 284 18619



What are the counter sales of each segment of color television (yearly) from your outlet?

14” 20” 21” 21”Flat 29” 29”Flat

Total sales of color television (segments wise) in North

Karnataka

District Outlets14" 20" 21" 21"Flat29"FlatTotal

Gulbarga22 15611564 16163216 590 8547

Bidar 10 566 602 698 1236 200 3302

Raichur 17 835 878 695 2124 194 4726

Bijapur 6 324 468 331 554 36 1713

Bagakot 9 230 537 216 367 7 1357

Belgaum 27 10801681 13243045 295 7425

Dharwad 25 12742107 18864449 439 10155

Haveri 9 460 748 678 1022 43 2951

Gadag 14 460 669 1209568 38 2944

Koppal 5 150 150 328 403 20 1051

Bellary 10 352 729 640 1814 43 3578

Total 154 7292 101339621 18798 1905 47749



What are the counter sales of each segment of washing machine (yearly) from your outlet?

Semi Automatic Fully Automatic Front Load

Total sales of Washing Machines (segment wise) in North Karnataka

District OutletsSemi AutoFully AutoFront loadTotal

Gulbarga22 689 393 72 1154

Bidar 10 496 156 0 652

Raichur 17 322 72 0 394

Bijapur 6 43 14 0 57

Bagakot 9 122 27 0 149

Belgaum 27 581 144 21 746

Dharwad 25 1142 597 115 1854

Haveri 9 86 7 0 93

Gadag 14 216 28 0 244

Koppal 5 28 0 0 28

Bellary 10 706 223 43 972

Total 154 4431 1661 251 6343



What are the counter sales of each segment of washing machine (yearly) from your outlet?

Direct Cool Frost Free

Total sales of refrigerator segments in North

Karnataka

District Outlets

Direct

cool

Frost

free Total

Gulbarga22 2115 961 3076

Bidar 10 1202 237 1439

Raichur 17 1483 661 2144

Bijapur 6 590 274 864

Bagakot 9 590 120 710

Belgaum 27 1849 424 2273

Dharwad 25 3266 1576 4842

Haveri 9 453 158 611

Gadag 14 554 58 612

Koppal 5 220 22 242

Bellary 10 1274 532 1806

Total 154 13596 5023 18619



When do the sales of (CTV/Washing /Machine/Fridge/Ovens) increases?


Which are the parameters a customer gives more importance while choosing a particular brand?


FINDINGS

After the analysis it came to know that 21” FLAT segment dominated the Color

Television with 40% of total sales, whereas 21% and 20% are captured by 20” and 21”

respectively.

In the Washing Machine segment 70% of sales is contributed by Semi-Automatic

segment, whereas 26% of sales is contributed by Fully-Automatic.

After the study it came to know that, Direct-Cool segment with 73% of sales dominates

over Frost-Free segment, which has 27% of total sales.

After the market study it came to know that out of 47749 Color Televisions sold per year

Videocon stood up at 4th place with 5486 numbers roughly about 11% of total Television

sales, whereas LG, Onida and Samsung has got 31%, 16% and 14% of total sales.

In Washing Machine segment out of the total 6343 Washing Machine sold per year,

Videocon stood at 3rd place with 1043 numbers coming up to 16% of total sales whereas

LG and Samsung stood at 34% and 17% of total sales.

In Refrigerator segment out of the total 18619 Refrigerators sold per year, Videocon

stood at 4th place with 2342 numbers coming up to 13% of total sales whereas LG, Godrej

and Samsung stood at 36%, 16% and 15% respectively.

The sales of 29” color television is not much in urban areas, but the consumers are

showing more interest in having it.

The sales of 14” color television are more in rural areas when compared to urban areas.

In urban areas, the sale of 21” FLAT color television is more when compared to rural

areas.

In the washing machine segment the sales of Semi automatic is more when compared to

Fully automatic and Front loading.

Under Refrigerator segment, the sale of Direct cool is more when compared to Frost-free.

After the survey it came to know that out of 140 dealers only 79 dealers are dealing with

Videocon, whereas 119 and 92 dealers are dealing with LG and Onida respectively.


After the market research it was found that the sales of Consumer Durables increases

during Festival Seasons particularly during Deepavali and Dushera, next to it comes

when Gifts and Discounts are offered and next when Price falls.

After the survey it was found that about 103 Dealers agrees that customers gives most

importance to Price whereas 58 and 51 Dealers agrees that customers gives importance to

Quality of the product and the Brand Name respectively.

In the urban areas, consumers are well educated and well aware of all the brands of

consumer durable, here the consumer compares all the brands before purchasing a brand.

When compared with urban areas Videocon has got a good market in rural areas.

CONCLUSION

During the survey it was found that in Northern region of Karnataka the market segmentation of

color television, in urban areas 21”FLAT is the fastest moving brand whereas in rural area14” is

the fastest moving brand.

Where as in refrigerator direct cool is dominating both the areas and in washing machine semi-

automatic is dominating both the segments so from the above points it came to know that if the

company applies some good strategies and breaks the market according to customers needs then

it can become the No-1 company.

RECOMMENDATIONS

The company should identify segment and geographical location where competitors are

weak and cater to those segments. This will help the company to build its sales where its

competitors are weak.

The company should identify each group of customers on geographic location and on

basis of it, the company should have exclusive showrooms of Videocon in major

marketing areas.

The consumer should be targeted by giving advertisement based on segment wise.


To capture the market the company should segment all the target groups of customers

based on different approaches of segmentations like demographic segmentation,

geographical segmentation and Psycho graphic segmentation.

Offers and schemes should be revised from time to time so as to increase the sales of

each segment.

Videocon can go for product innovation so that a product appearance, features,

performance can further improved to provide customer delight.

To capture the rural market the company should promote their products in local

newspapers based on segments made specifically for rural consumers.

Go for competitive pricing so that the price gap between other competitive

brands/segment can be reduced.


The project was very structured one but still it has the following limitations

The area into consideration was limited for the study of the project, as the considered area and

the facts collected cannot be compared at large to the entire Karnataka.

The project required analysis of different areas. With the limitations of time and resources at

disposal, it is very difficult to carry out the entire thing in full depth.

Analysis of the study is based on the assumption that information collected from the respondent

was correct.


QUESTIONNAIRE

Respected sir,

It gives us immense pleasure to introduce our self as the students of BBA V th Semester

from prestigious institute, Fatima college of Business Administration, Hubli. As part of our

project work requirement, we are undertaking a market survey. We request you to help us in

collecting information for the project; we assure that the information collected will be used for

academic purpose.

Your valuable time and kind co-operation is highly obliged.

Name and address of the outlet ________________________

________________________

________________________

1. Which are the brands you deal with?

LG Samsung Videocon Onida Philips BPL

Sansui Akai Godrej Whirlpool Electrolux

Others ________________

2. Which is the fastest moving brand from your outlet?

Color TV ____________________

Washing machine ____________________

Refrigerator ____________________

Microwave ovens ____________________


3. What are the counter sales each Colour television segment’s (yearly) from your outlet?

14” 20” 21” 21”Flat 29” 29”Flat

4.What are the counter sales each washing machine segment’s (yearly) from your outlet?

Semi Automatic Fully Automatic Front Load

5. What are the counter sales each washing machine segment’s (yearly) from your outlet?

Direct Cool Frost Free

6. What are the counter sales of each brand from your outlet (Yearly)?


Brands Color TV Washing

machine

Refrigerator Microwave

ovens

L G

Samsung

Videocon

Onida

BPL

Godrej

Philips

Sansui

Akai

Whirlpool

Electrolux

kelvinator

Others

7. When do the sales of (CTV/Washing Machine/Fridge/Ovens) increases?

During festivals

When gifts and discounts are offered

When prices falls

Others


8. Which are the parameters a customer gives more importance while choosing a particular

brand?

Price

Quality

Brand name

Service


BIBLIOGRAPHY

Marketing management by Philips Kotler

Marketing research by Donald S Tull and Dell I Hawkins

Websites

o www.videoconinternational.com

o www.google.com

o www.marketresearch.com

o www.lge.com

o www.samsung.com

o www.onida.com

Newspapers

Company booklets
