Videocon Television Project Report

INTRODUCITON: Every business organization that comes into contact with the customer develops a perception in the mind of the customer. Today, in this competitive world every organization needs to know the perception in the mind of the customers. In order to gain mind share or heart share of customers along with the market share is the main lookout for the organizations. Especially in consumer electronics sector, where the products are more or less same, the only way to leave positive impact on customer’s mind and to gain competitive advantage is providing best possible services to the customers. Introduction part of this report is classified into two different sections. 1.

Problem Statement The principle cause behind this project is to know that to what level customers are enjoying and aware of videocon TV offered by the company and what further improvement can be done in future in this area so as to get brand awareness.

2.

Objective •

To have an overview of videocon.

•

To know the reputation of

•

How the consumer preference towards the brand videocon.

•

The main objective how to increase the reputation of

videocon T.V. in the market.

videocon brand in the market. •

To understand its competitors in business.

•

How videocon will create a good image in the market.

•

To understand the 4 Ps used by the videocon in business

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CHAPTER-1

STUDY OF THE INDUSTRY

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INDUSTRY SCENARIO Before the liberalization of the Indian economy, only a few companies like Kelvinator, Godrej, Allwyn, and Voltas were the major players in the consumer durables market, accounting for no less than 90% of the market. Then, after the liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo, Aiwa came into the picture. Today, these players control the major share of the consumer durables market. Consumer durables market is expected to grow at 10-15% in 2007-2008. It is growing very fast because of rise in living standards, easy access to consumer finance, and wide range of choice, as many foreign players are entering in the market. Consumer durables are the products whose life expectancy is at least 3 years. These products are hard goods that cannot be used up at once. Consumer durables Sector can be classified as follows: 1. Consumer Electronics includes VCD/DVD, home theatre, music players, color televisions (CTVs), cameras, camcorders, portable audio, Hi-Fi, etc. 2. White Goods include dishwashers, air conditioners, water heaters, washing machines, refrigerators, vacuum cleaners, kitchen appliances, non-kitchen appliances, microwaves, built-in appliances, tumble dryer, personal care products, etc. 3. Moulded Luggage includes plastics. 4. Clocks and Watches 5. Mobile Phones

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ABOUT CONSUMER ELECTRONICS INDUSTRY 1.History of consuemr Electronics in India The Electronics Industry in India took off around 1965 with an orientation towards space and defense technologies. This was rigidly controlled and initiated by the government. This was followed by developments in consumer electronics mainly with transistor radios, Black & White TV, Calculators and other audio products. Colour Televisions soon followed. In 1982-a significant year in the history of television in India – the government allowed thousand of Colour TV sets to be imported into the country to coincide with the broadcast of Asian Games in New Delhi. 1985 saw the advent of Computers and Telephone Exchanges, which were succeeded by Digital Exchanges in 1988. The period between 1984 and 1990 was the golden period for electronics during while the industry witnessed continuous and rapid growth. From 1991 onwards, there was first an economic crises triggered by the Gulf War, which was followed by political and economic uncertainties within the country. Pressure on the electronics industry remained though growth and developments have continued with digitalization in all sectors and more recently the trend towards convergence of technologies. In recent years the electronic industry is growing at a brisk pace. It is currently worth $ 10 Billion but according to estimates, has the potential to reach $ 40 billion by 2010. The largest segment is the consumer electronics segment. While is largest export segment is the consumer electronics segment. While is largest export segment is of components.

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The breakup of production in various segments the industry is shown be low: • 1950s

Radios -imported & Sold

• Late 1960s B&W TV Transmission started • 1970s

Manufacturing of B/W TV started

• 1982

Colour TV Transmission, Manufacturing of CTV started

• 1992

Economic Liberalization Process initiated

• 1993-94

Dismantling of controls such as licences, Ban on use of Foreign Brand Names etc.

• 1994-95

Entry of MNCs – Panasonic, Sony, LG, Samsung etc. Lowering of Import duties. Cable TV Started.

• 1995

Till Date Entry of Many MNCs & Rapid Growth, Continuous Lowering of Import Duties

• 2001

Non tariff Barriers on Imports removed.

• 2004

Free Trade Agreement (FTA) with Thailand implemented,Resulting in reduction of import duties to 0% on Colour Television sets, Colour Picture Tubes, Refrigerators and Air Conditioners, thus more competition.

• 2005

DTH Services Started

• 2007

Entry of Organised Retail

• 2008

FTAs with other countries & FDI in retail likely.

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2. CURRENT SCENARIO The consumer durables market in India is valued at US $ 4.5 billions currently. In 2008, microwave ovens and air conditioners registered a growth of about 25%. Frostfree refrigerators have registered significant growth as many urban families are replacing their old refrigerators. . Washing machines, which have always seen poor growth, have seen reasonable growth in 2006. More and more Indians are now buying electrical appliances due to change in electricity scenario. The penetration level of color televisions (CTVs) is expected to increase 3 times by 2008. On the brick of rapid economic growth, India has witnessed the dynamic change in country's consumer electronics industry. In last few years the industry has been witnessing significant changes in retail boom, growing disposable income and availability of easy finance schemes. One electronic gadget that has brought new revolution in Indian Electronic Industry is Television Set. Today, India is fast emerging as the key driver in the global television market both as a manufacturer and consumer. In recent years, the market for televisions in India has changed rapidly from the conventional CRT technology to Flat Panel Display Televisions (FPTV). Currently, the split between CRT and FPTV is around 97% and 3% respectively. In addition to this, one of the most striking changes sweeping across the colour television market in Indian market is the exponential growth of the flat panel television (FPTV) market, in common parlance called the liquid crystal display (LCD) and plasma televisions. Moreover, as per recent research data available, the global market for FPTV is expected to grow from 51 million units in 2006 to 127 million by 2009.

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Looking at the present scenario, over the last couple of years, the LCD prices have even dropped by around 30 per cent annually. Some of the important factors that boasted this growth also include the increasing awareness of the advantages of LCD televisions, the growing availability of the product across dealer counters and the Finance schemes in the market. Besides this, as a manufacturing hub, the television industry is improving more and more. There are many domestic and MNC companies that have increased their production bases in the country. Easy availability of lowcost skilled labor and the emergence of SEZs, which are tax-free zones are some of the key factors that have resulted in growth of these manufacturing units. In fact, encouraged by tax-breaks, new manufacturing units are coming up in less-developed regions now. Today, India is one of the few emerging countries to have an excellent component supply base in terms of manufacturing facilities for glass and color picture tubes, so it helps it a good choice for all those companies who are looking to take benefit of this emerging market. In present scenario top player for colour television are •

LG

•

VIDEOCON

•

SAMSUNG

•

SONY

•

ONIDA

•

PHILLIPS

•

SANSUI

•

BPL

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3. INDUSTRY ANALYSIS- 5 FORCES MODEL

Michael Porter’s Five Forces Model provides a robust and time-tested framework for analysing any industry, reflected in the strength of the five forces (industry competitors, potential entrants, threat of substitutes, power of buyers and power of suppliers). The collective strength of the five forces determines the ultimate profit potential in an industry, Where profit is measured in terms of long-term returns on capital invested. The elements of each of the above forces and the extent and /or effect of each element in the context of the television industry have been analysed and enumerated below. The Porter’s Five Forces tool is a simple but powerful tool for understanding where power lies in a business situation. This is useful, because it helps you understand both the strength of your current competitive position, and the strength of a position you’re looking to move into. With a clear understanding of where power lies, you can take fair advantage of a situation of strength, improve a situation of weakness, and avoid taking wrong steps. This makes it an important part of your planning toolkit. Conventionally, the tool is used to identify whether new products, services or businesses have the potential to be profitable. However it can be very illuminating when used to understand the balance of power in other situations.

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1. COMPETATIVE RIVALRY AMONG INDUSTRY (VERY HIGH) 2. BARGAINING POWER OF BUYER (VERY HIGH) 3. BARGAINING POWER OF SUPPLIER (LOW) 4. BARRIER TO ENTRY (LOW) 5. THREATS OF SUBSTITUTES (LOW)

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3.1 Degree of Rivalry Degree of rivalry denotes the intensity of competition within the industry. Videocon, LG, samsung, Sony, Onida, are the big competitors in television industry. Although Videocon, another major player has managed to hold its own in the midst of the onslaught from the Korean majors, though profits have suffered. Other large Indian companies in the top of the list are Mirc Electronics. While Mirc Electronics is managing to hold its share by adopting value for money strategy, BPL is facing tough time, experiencing drastic decline in market share. Sony, Philips, Akai, Sansui, Aiwa, Toshiba and now Hyundai are the other foreign brands in the market. The industry is based on numbers game and companies will have to maintain a fine balance between catering to lifestyle requirements and meeting the needs of average consumer. 3.1.1 Competitor Analysis A detailed analysis of some of the major players is done below: LG ELECTRONICS LG Electronics rightly understood the consumer motivations to create magnetic products, price them strategically, position them sharply and keep making the magnetism more potent. Having understood the finer differences in consumer motivations, it opted for sharp- arrow ‘reasons-to-buy’ differentiation over the ‘blanket-all approach’ taken by most of the other players. It is an aggressive marketer. It focuses on low and medium price products. SAMSUNG Initially the strategy of Samsung in India was to create premium image by emphasising global brand. After facing stiff competition from another Korean majorLG, Samsung also started playing price game. In 2004 it reverted back to its premium positioning, although it resulted in some loss of market share. In line with the Global Digital Initiative of the Parent Company, Samsung India is seeking to acquire digital leadership in India by introducing its digital ready televisions like the 40" LCD Projection TV, 43" Projection TV and the Plano series of Flat Colour televisions. RAMAIAH
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ONIDA Its popular devil ad although had engendered a strong emotional pull towards the brand, technologically it represented no advancement. The company plugged the gap by touting its digital technology. Like Videocon, it has also been able to hold its market share. The world-class quality of Onida has enabled the company to make a breakthrough on the export front. It has technical tie- up with the Japan Victor Company, better known as JVC. So focused is Onida on positioning itself on the premium, high- tech plank that it is even planning to push its own envelope on obsolescence, much. The strategy is aimed at further broad basing the product offering of the company, which has largely dominated the top-end of the television market, across multiple market segments. VIDEOCON Videocon has always been a price player and has an image of a low price brand. This entails providing more features at a given price vis-à-vis competitors. It has taken over multinational brands to cater to unserved segments, like Sansui- to flank the flagship brand Videocon in the low to mid priced segment, essentially to fight against brands like BPL, Philips, Onida and taken over Akai- tail end brand for brands like Aiwa. Videocon is one of the largest manufacturers of television and its components in India and thus has advantages of economies of scale and low cost due to indigenisation. It has the widest distribution network in India with more than 5000 dealers in the major cities. It also has a strong base in the semi-urban and rural markets. Due to its multi-brand strategy, it has at present multiple brands at the same price point. This has led to a state of diffused positioning for its brands. It has also led to a cannibalisation of sales among these brands. The flagship brand Videocon has lost market share due to the presence of Sansui in the same segment. Because of reduction in import duties on CPT the cost advantage of Videocon is also on the decline. Hence it is facing rough weather and also trying to boost exports.

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Besides understanding the strategy adopted by different players, several other factorsindustry growth, concentration and balance, corporate stakes, fixed cost, and product differences need to be analysed to determine the extent of rivalry between the existing Players.

3.2 The threat of potential new entrants (low) High capital required entering into television industry, which needed large investment on technology, distribution, service outlets and plant. Difficulty for customers in switching cost, when they are satisfied with their current product as well as difficultly for new entrants to have product differentiation because customers had already familiar with those established consumer electronics companies, therefore new entrants have to spend a lot on branding and customer knowledge. It is difficult to obtain a license; successful applicant has to undergo through a form of competitive evaluation, such as a comparative evaluation process. Threat of entry is determined by the entry barriers, which act to prevent new firms from entering the industry. A lower entry barrier makes it difficult for the existing producers to remain profitable for long. When profits increase, additional firms will enter the market to take advantage of the high profit levels and over time drive down profits of all firms in the industry. When profits decrease, some firms will exit the market, thus restoring the market equilibrium. Barriers to entry arise from several sources: 3.2.1 Access to Distribution Channels A strong distribution network is absolutely essential to compete in this industry. Not only does it guarantee a country wide reach for a company’s products but is also necessary for providing good after sales service. Videocon has implemented ERP system, which helps in integrating the manufacturing, marketing, procurement and distribution services with the corporate office

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LG Electronics sells in 1800 towns and cities with a population of 1,00,000 and above. Samsung also has a widespread service network, which includes 123 exclusive service centres and 200 distributors in any town with more than 1 lakh population. All BPL dealers are linked via VSAT nodes, ensuring online availability of information on inventory status and sales movement. Distribution hence is difficult and costly as established firms dominate distribution. Large incentives are required to gain entry into the distribution channels and further gain recommendation to retailers from the dealers. 3.2.2 Brand Salience With little product differentiation and parity products, it is imperative that distinct images are created in the minds of consumers through positioning and brand building. MNCs have been able to compress the cost of brand building by amortising the cost of sponsoring international events across a larger footprint straddling multiple countries. 3.2.3 Capital Investment and Economies of Scale Television industry is capital intensive and players have made huge investments in putting up state of the art manufacturing facilities. Videocon has seven manufacturing site in India Sony India had a production capacity of 300,000 CTV sets with capacity utilisation of 66%. Samsung is investing $4 mn to expand its CTV manufacturing capacity at Noida to 800,000 units per year. The existing capacity of the plant is around 600,000 units. Other players like Mirc Electronics, LG have also set up manufacturing facilities in India. The market players need sales volume to achieve economies of scale, which is difficult because of large number of competitors. Apart from investments in manufacturing the industry requires huge working capital to manage inventories.

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Supply chain mgmt. and inventory management thus becoming crucial toDetermining profitability. With regard to sourcing funds, MNCs are better placed Than their Indian counterparts as they manage to get funds from their parent Companies at low rates of interest. Huge capital requirement thus can act as barrierto entry.

3.3 Threat of Substitutes goods (low) In Porter’s model, substitute products refer to products in other industries.there is few substitutes from other industry if any. Most of them seem to be obsolete or have one foot out of door. Internet though emerging as an infotainment medium is very low in penetration. Moreover the industry has responded to the future threat by introducing a TV that can provide functions of the Internet along with regular features, e.g., BPL digital that includes Internet and cellular facilities.

3.4 bargaining power of Buyer (high) The power of buyers is the impact that consumers can have on a producing industry. Buyer power influences the prices that a firm can charge. Buyer power is influenced by various factors as follows: 3.4.1 Buyer Concentration The industry is akin to consumer durables whose end users are fragmented. Hence buyers do not have any specific influence on producers. 3.4.2 Buyer Switching Cost The cost incurred by consumer in switching from one television brand to another is practically zero. Brand loyalty is low. Hence the companies cannot rest on their laurels and have to be on their tenterhooks to retain the customers. 3.4.3 Price Sensitivity Market is highly price conscious and promotion driven. With the onslaught of VIDEOCON’s major price cuts and promotional schemes, this market has now become a promotion driven one. To successfully compete in this industry, even premium players like Sony, LG have had to come up with schemes. LG and Philips have RAMAIAH
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Been the most aggressive amongst industry leaders as far as pricing is Concerned and hence their realisation shave been lower than industry average. Industry leaders like LG focus on low- medium priced CTV, while Samsung has Moved gradually towards higher priced CTVs. The domestic high-end CTV prices will follow the global price trend of declining prices. However, the Prices of domestic products would be higher than those of global products due To negligible demand in the domestic market and hence most likely to be met Through imports. market is highly price sensitive as the Demand has increased with fall in prices.

3.5 Bargaining power of supplier (low) In television industry, there is low bargaing power of Supplier’s because big global supply chain management.there is direct negotation with supplier in order to encourge reliable supply, faster delivery and lower price. Bargaining power influences the cost and quality of input material. Higher supplier power raises the input cost, thereby reducing the industry profitability. The most critical component in manufacturing television is the picture tube. It constitutes around 50% of the cost of television. While Black and White picture tubes are made in India, many manufacturers still need to import colour picture tubes. The other important components include electronic circuit boards, tuners, hightension transformers and moulded plastic casings. The demand For colour picture tubes (CPT) has been rising steadily. But at the same time owing To customs and import liberalisation, they had to face competition from imports During1993-1997. A sharp reduction in import duty from 85% to 40% between 1994-96 and further down to 20% by 2004 was announced to gear the manufacturers of picture tubes to face competition from foreign players. As a result of spurt in Demand in 1990s, the CPT manufacturers expanded capacities, which resulted in Excess capacity in the domestic market. Samtel Colour, LG Hotline and JCT Electronics are the major domestic CPT manufacturers The picture tube industry is both technology and capital-intensive industry. RAMAIAH
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At the same time bulk orders in raw material procurement fetch more discounts, which gives the larger players an advantage over their smaller counterparts. The CPT, the most critical component in a CTV has no alternate use and therefore, the CPT industry is solely dependent on CTV players, mainly domestic and partly exports. Hence larger players like LG, Samsung and Mirc etc. are able to negotiate better deals unlike other players.

3.6. CONCLUSION The variables affecting the industry with regard to each of the five forces have been Categorized as favourable or adverse. Favourable variables have the potential to improve profitability, while adverse variables reduce profitability of the industry. Some strategic initiatives, which could be adopted to leverage the favourable forces And protect themselves from the adverse ones, are as follows: • R&D and Marketing will have to work closely together. R&D will have to play a role in cost innovation, which can cut component cost and raise performance. The number of defectives has to be reduced at negligible levels. The quest should be to do even better. Each assembly line can be made to compete with the other. • Vital to the spread out is the re-haul of distribution network. Home appliances have necessitated separate dealers, many of them specialists. For sharper focus on all categories individually, the market has to be opened wider. • Brand building will be important, so as to ensure brand preference. Marketers will have to strategise to pull the consumer up the value escalator. A good fraction of sales if come from high margin products as flat TVs and projection TVs would improve profitability of companies. Sharply differentiated products with effective communication on a continuous basis would be the key for future. Challenge lies in creating higher order universal benefits and sensitising the larger audiences to it. RAMAIAH
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LG and Samsung are likely to retain top positions. • Buyers are easily swayed by costs, which are also verified by the presence of large number of product offerings. Focus would be on providing value for money to the consumer, with more brands in the economy segment. The challenge before marketers is to span out, and address a wider set of needs. They will have to identify segments not addressed by them so far and also introduce low price-point products aimed at rural markets. • Besides catering to the cost conscious segment, marketers need to segment the market on the basis of psychographics, which will help in inducing brand loyalty through lifestyle and experiential marketing. • The increase in disposable incomes, more number of households above the threshold income, declining prices, shortened replacement cycle and the demand for multiple TV, all these factors are expected to sustain the growth momentum at 10-12 per cent during 2008-09 to 2010-11.

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CHAPTER-2

STUDY OF THE COMPANY

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COMPANY PROFILE Brief Profile The Videocon group emerges as a USD 2.5 Billion global conglomerate continuing to set trends in every sphere of its activities from a conference room sized assembly line in 1979.

Today the group operates through 4 key sectors: 1. Consumer durable 2. Thomson CPT 3. CRT glass 4. Oil and gas Consumer Electronics, Home Appliances & Compressor manufacturing in India We enjoy a pre-eminent position in terms of sales and customer satisfaction in many of our consumer products like Colour Televisions, Washing Machines, Air Conditioners, Refrigerators, Microwave ovens and many other home appliances, selling them through a Multi-Brand strategy with the largest sales and service network in India. Our compressor manufacturing technology in Bangalore further supports refrigerator manufacturing. Display industry and its components With the Thomson acquisition Videocon has emerged as one of the largest Colour Picture tube manufacturers in the world operating in Mexico, Italy, Poland and China, continuing to lead through new innovative technologies like slim CPT, extra slim CPT and High Definition 16:9 format CPT. RAMAIAH
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Colour Picture Tube Glass Videocon is one of the largest CPT Glass manufacturers in the world with a high level of experience and technical expertise operating through Poland and India. Videocon will leverage on this synergy after the Thomson acquisition to internally source glass for its CPT manufacturing increasing efficiencies and lowering costs. Oil and Gas An important asset for the group is its Ravva oil field with one of the lowest operating costs in the world producing 50,000 barrels of oil per day. The group has ambitious plans for expansion in this

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BRAND-BASKET

Partner Samsung Electronics

Product

Nature Of Tie-Up

Fly Back, Tuners

Technical Support

Transformers Matsushita Electric

Washing Machine

Technical * Collaboration

Matsushita Electric

Air Conditioner

Design & Drawing

Matsushita Electric

Refrigerator

Design & Drawing

Audio Products

ODM for Indian Market

Sansui Electric Co. Ltd

And Colour TV Techneglas Akai

Glass Shell

Technical Collaboration

Audio Products

ODM for Indian Market

And Colour TV Hyundai Electrolux AB Sweden

Colour TV

ODM for Indian Market

Refrigerator,

1.ODM & Indian Market

Air Conditioner and

2.Sourcing of components for

Washing Machine

Global Market 3.ODM for Global market




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HISTORY

 
 















 Color

&
BW
TV

 Washing
Machine


• • 
 • • •

Home
Entertainment
Systems
 Electric
Motors
 AC


• •

Refrigerators
 Coolers


•

Glass
Shells
for
CRT


• •

Kitchen
Appliances
 Crude
oil


• •

Compressor
 Compressor
Motors


•

Philips
Color
TV
Plant
Take
Over


• •

ElectroLux
India
Three‐Plant
Takeover
 Thomson
CPT
Acquisition


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Ownership pattern: Shareholding Pattern as on 31-03-2009 Number of Sr.

Category of

No

shareholder

Number of

Total

shares held in

shareholder

number of

de

s

shares

materialized form

(A)

Shareholding of Promoter and Promoter Group

(1)

Indian

(a)

Individuals/Hindu

13

1619838

Bodies Corporate

44

Sub-Total

57

As a % of

As a % of

(A+

(A+B+C)

B)

1292950

0.87

0.73

153823583

152711452

82.6

69.57

15544342

154004402

83.4

70.3

Undivided Family (b)

(A)(1)

1

(2)

Foreign

(a)

Individuals(Non-

7

0

0

0

0

0

Resident Individuals/Foreign Individuals) (b)

Bodies Corporate

0

0

0

0

0

(c)

Institutions

0

0

0

0

0

(d)

Any Other (specify)

0

0

0

0

0

Sub-Total

0

0

0

0

0

154004402

83.4

(A)(2) Total Shareholding

57

15544342

of Promoter and

1

70.3

7

Promoter Group (A)= (A)(1)+(A)(2) (B)

Public shareholding

(1)

Institutions

(a)

Mutual Funds / UTI

21

36571

(b)

Financial

36

304403

Institutions/

35228

0.02

0.02

291166

0.16

0.14

5599752

3.01

2.53

12706367

7.23

6.09

Banks (c)

Insurance Companies

5

5600352

(d)

Foreign

95

13467563

Institutional

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Investors Sub-Total

157

19408889

18632513

(B)(1)

10.4

8.78

2

(2)

Non-institutions

(a)

Bodies Corporate

(b)

Individuals

(i)

Individual

1927

5516620

4962476

2.96

2.5

4685290

2998613

2.52

2.12

19

1171618

1171618

0.63

0.53

Any Other (specify)

0

0

0

0

Sub-Total (B)(2)

344808

11373528

9132707

6.11

5.15

Total

344965

30782417

27765220

16.5

13.93

342862

Shareholders

holding

nominal share capital up to Rs. 1 lakh (ii)

Individual Shareholders

holding

nominal share capital in excess of Rs. 1 lakh (c)

Public

Shareholding

(B)=

0

3

(B) (1)+(B)(2) TOTAL (A)+(B)

345022

18622583

18176962

100

84.23

34862403

0

15.77

22109370

21663202

100

1

5

8 (C)

Shares

held

Custodians

by

2

2

34867863

and

against

which

Depository

Receipts

have been issued GRAND TOTAL (A)+(B)+(C)

345024

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Vision & Mission Videocon’s mission: a reflection of continuity and change Videocon’s mission expression has been crafted to envelope both extant and emerging realities: “To delight and deliver beyond expectation through ingenious strategy, intrepid entrepreneurship, improved technology, innovative products, insightful marketing and inspired thinking about the future.” A breakdown of the statement above reveals a ‘means and end’ approach, where the end is articulated at the beginning with the means linked to it. “To delight and deliver beyond expectation…”: the end This segment not only underlines the importance of the ultimate goal - customer satisfaction (‘delight’) and ultimate target - the customer, but also of intermediate processes and principals, which have contributed to building a robust, dependable Videocon value chain (‘deliver’). As a result of its focus on developing loyal customers and reliable associates, Videocon is able to exceed expectations. “…Through ingenious strategy…”: the means In the cutthroat world of today, it is only by taking recourse to advance planning and strategy that a business can hope to survive. Although textbook strategy has its uses, reproducing it in verbatim for the real world would be foolish because of the absence of textbook conditions. Thus, there is a need for a bounded rationality, spontaneity and improvisation that is flexible enough for scenarios both imaginable and unimaginable. Videocon’s ingenious manoeuvres are actually flexi-strategy that abstracts from shifting ground conditions and decides game plans, or sometimes changes the rules of the game.

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“…Intrepid entrepreneurship…”: the means An enterprise with the odds stacked against it makes great business sense. This is because higher the obstacles, lower the number of players likely to be active in that field - thus, fetching extraordinary returns. The only requirement is a bold and confident attitude willing to brave the odds. Videocon’s foray into oil and gas is a bold and intrepid endeavour that arises from immense faith on the surefooted competence of the company’s in-house managerial talent. “…Improved technology…” the means Technology is no more a premium input; it has become the bare minimum in recent years. Rapid advances have only fuelled this phenomenon. Videocon is extremely vigilant in shunting out dated technology and replacing it with the best-in-class offers of the times. “…Innovative products…” the means Product development, innovation and customisation are the tools Videocon uses to stay ahead of the competition. This is because a continuous stream of innovative products excites the market and enhances brand recall. A strategy that Videocon banks on a lot, especially on the domestic front “…Insightful marketing…” the means The market share battle scene has long shifted from technology and processes to the psyche of the customer. This means that those with deeper insights into the elusive mind of the buyer are likely to dominate. Videocon is reinforcing marketing strengths to read better the pulse of the market and help create products that map perfectly into customer preferences. “…Inspired thinking about the future.” the means The future is unpredictable, but not doing anything about it is fraught with grave

risk. Videocon extrapolates future trends on the basis of current changes in

technology and preferences as well as sheer gut feel. RAMAIAH
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Corporate Governance Company's Philosophy on Code of Governance: The company's philosophy on corporate governance enshrines the goal of achieving the highest levels of transparency, accountability and equity in all spheres of its operations and in all its dealing with the shareholders, employees, the government and other parties. The company believes in the philosophy on code of corporate governance, which provides a structure by which the rights and responsibility of different constituents, such as the board, employees and shareholders are carved out. In carrying out this, it is ensured that the company\'s objectives are well defined and performance against those objectives are adequately measured and monitored. Corporate governance is considered as an important tool for shareholders rotection and maximization of their long -term values. The cardinal principal such as accountability, responsibility, transparency and fair disclosure serve as the means for achieving this. R&D The company gives utmost importance to the R & D activities, which are carried out, at in-house R & D center. The company carries on new innovations in product development, cost reduction, quality improvement, process implementations, process controls. 1) Specific areas in which R & D is carried out by the company During the year, the company has carried out Research and Development in the following areas. Home theaters -High-end models and HTIB Models. Larger Screen Television i.e.32 Inch and 38inch. True Flat Televisions Plasma Televisions Cosmetic design and new out look to the TVs Manufacturing of components for CTV, Refrigerators and Air conditioners. RAMAIAH
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Efforts to reduce power consumption of all its final products. 2) Benefits derived as a result of the above R& D. The company has derived the following benefits as a result of the Research and Development: Development of new design in product and launch of various new models. Able to compete with the foreign players in the Indian Markets by cost reductions and offering innovation features and to maintain market leadership in Television under Videocon umbrella. Increase in productivity. Reduction in power consumption of some of the products. 3) Future Plans of action In the coming days company is aiming to achieve development in the following areas through Research & Development: Manufacturing of components for consumer Electronics Products. Multimedia TV. Plasma Televisions. Launching of New Brands & Sub-brands under Videocon umbrella. Composite Home Entertainment system with internet adaptability. To work on better features, better quality & improved reliability with reduced/low prices. Your company always attempts to use the latest and advanced technology in production process. Keeping pace with the technological developments, the company keeps on adding sophisticated equipments with focus on automation to minimize manual intervention in the manufacturing process thereby ensuring quality of the final products.

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Future Plans To strengthen and maintain & its leadership status, the Videocon group has clearly charted out its course for the future. Aggressive development is in full swing at the R & D Centres to bring out state-of-the-art technologies including True Flat, Slim, Extra Slim, Plasma & LCDs, at the earliest. Cost rationalization processes - are in various stages - including rationalizing factories in Europe, increasing automation and improvement of efficiency in China, accessing flass shells from India for international CPT facilities and a lot more - are in various stages of implementation. Internationally all existing client relationships are being strengthened. The cost competitiveness and increase in capacity in Mexico and Polland has opened up big opportunities in the OEM business. Last but not the least, in the domestic market consolidation with multiple brands paves the way for an unassailable lead in the market. In the Oil & Gas business, having all the basic operator capabilities of a prospecting entity, the group is looking to add more explorations and production depth as also oil bearing assets. The group will also get into gas

distribution in India siginificantly.

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

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FUNCTIONAL DEPARTMENTS OF THE ORGANIZATION: STORE DEPARTMENT:

Functions: 1. Purchase of all items indented by user functions like spares Consumables etc., other than plant and equipment. 2. Registration of suppliers and evaluation. 3. Maintenance of Stores. 4. Inventory control of stock items. 5. Co-ordination with finance department for timely payment to the Suppliers.

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FINANCE DEPARTMENT Functions: •

To comply with legal and other requirement.

•

To provide information for stakeholders about financial performance and viability

•

To provide managers with information for decision-making

•

To provide a structure to business activity based on the careful processing of numerical data.

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MARKETING DEPARTMENT

Functions: The smooth functioning of the marketing, sales and delivery operation Corrective actions on customer complaints New initiatives taken for sales maximization of the company Handling relationship with personal, communicating and reporting to the management. Developing sales programs and formulating and designing sales polices.

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PRODUCTION DEPARTMENT Functions: Production and planning Purchasing Stores Design and technical supports Works

Production cycle:

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AUDIT REPORT We have audited the attached Balance Sheet of VIDEOCON INDUSTRIES LIMITED, as at 31st march 2009, Profit and Loss Account and also The Cash Flow Statement of the Company for the year ended on that date Annexed thereto. These financial statements are the responsibility of The Company management. Our responsibility is to express an opinion On these financial statements based on our audit We conducted our audit in accordance with auditing standards Generally accepted in India. Those Standards require that we plan and Perform the audit to obtain reasonable assurance about whether the Financial statements are free of material misstatement. An audit Includes examining, on a test basis, evidence supporting the amounts And disclosures in financial statements. An audit also includes Assessing the accounting principles used and significant estimates made By management, as well as evaluating the overall financial statement Presentation. We believe that our audit provides a reasonable basis for Our opinion. ANNEXURE REFERRED TO THE AUDITORS REPORT Statement referred of the Auditors Report of even date to the Members of VIDEOCON INDUSTRIES LIMITED on the financial statements for the Year ended 31st march 2009. (i) (a) The Company has maintained proper records showing full Particulars including quantitative details and situation of fixed Assets. (b) As per the information and explanations given to us, physical RAMAIAH
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Verification of fixed assets, other than those under joint venture, has Been carried out at reasonable intervals in terms of the phased Programme of verification adopted by the Company and no material Discrepancies were noticed on such verification. In our opinion, the Frequency of verification is reasonable, having regard to the size of The Company and nature of its business. (ii) (a) As per the information and explanations given to us, the Inventories (excluding stock of crude oil lying at extraction site with the Operator) have been physically verified during the year by the Management. In our opinion, having regard to the nature and location of Stocks, the frequency of the physical verification is reasonable. (b) Procedures of physical verification of inventory followed By the management are reasonable and adequate in relation to the size Have the Company and the nature of its business. (c) The Company is maintaining proper records of inventory. As per the Information and explanations given to us, the discrepancies noticed on Physical verification of stocks were not material in relation to the Operations of the Company and the same have been properly dealt with in The books of account. (iii) As per the information and explanations given to us, the Company has not granted or taken any loans, secured or unsecured, To/from Companies, firms or other parties covered in the register Maintained under Section 301 of the Companies Act, 1956. (iv) In our opinion and according to the information and explanations Given to us, there are adequate internal control systems commensurate With the size of the Company and the nature of its business with regard To purchases of inventory and fixed assets and for the sales of goods RAMAIAH
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And services. During the course of our audit, we have not observed any Continuing failure to correct the major weakness in the internal Controls systems. (v) (a). Based on the audit procedures applied by us and according to The information and explanations provided by the management, we are of The opinion that the particulars of contracts or arrangements referred To in Section 301 of the Companies Act, 1956 have been entered in the Register required to be maintained under that section. (b) In our opinion and according to the information and explanations Given to us, the transactions made in pursuance of contracts or Arrangements entered in the register maintained under Section 301 of The Companies Act, 1956 and exceeding the value of Rupees Five lakh, in Respect of any party during the year, have been made at prices which Are reasonable having regard to prevalling market price at the relevant Time. (vi) The Company has not accepted any deposits from the public within The meaning of the provisions of Section 58A and 58AA or any other Relevant provision of the Companies Act, 1956 and rules made there Under. (vii) In our opinion, the Company has an internal audit system Commensurate with its size and nature of its business. (viii) The Central Government has prescribed maintenance of the cost Records under Section 209(1)(d) of the Companies Act, 1956 in respect Of the Companys products. As per the information and explanations Provided to us, we are of the opinion that prima facie, the prescribed Records have been made and maintained. We have however not made a Detailed examination of the records with a view to determine whether They are accurate or complete. RAMAIAH
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(x) There are no accumulated losses as at 31st march 2009. The Company has not incurred any cash losses during the year covered by our Audit and the immediately preceding financial year. (xi) Based on our audit procedures and the information and explanations Given by the management, we are of the opinion that the Company has not Defaulted in repayment of dues to financial institutions, banks or to Debenture holders during the year. (xii) The Company has not granted any loans and/or advances on the basis of security by way of pledge of shares, debentures and other securities. (xvi) The term loans raised during the year were applied, on an overall basis, For the purposes for which the loans were obtained. (xvii) The balance sheet of the Company, we report that the Company has Not used funds raised on short-term basis for long-term investments. (xix) The Company has not issued any secured debentures during the Year. The Company has created security in respect of debentures issued In earlier years. (xx) During the year the Company has not raised any money by way of Public issue. (xxi) According to the information and explanations given to us, no Fraud on or by the Company has been noticed or reported during the

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CHAPTER-3

SWOT ANALYSIS

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SWOT Analysis Strengths 1. Videocon has largest distributed capacity manufacturing base across India with 17 facilities and plant in china, Poland, itally, Mexico. 2. Manufacturing capacity is 1, 40000 units. 3. Videocon has a network of 400 plus service and 85 mobile service vans to give better service to their customers. 4. Tie up with the Matsushita electric company of Japan add to the goodwill of Videocon 5. Customers are aware about Videocon’s products. 6. Company has good brand name. 7. Strong backward integration 8. Videocon has largest distribution manufacturing based across in India. 9. Large brand basket 10. Multi brand strategy 11. 3rd largest picture tube manufacture in India 12. Cheap price. 13. Globally acceptance. Weaknesses 1. Less investment on advertisement of Videocon CTV 2. Fewer margins to the distributor/dealer. 3. Weak promotional strategy of CTV. 4. No proper approach of target customer. 5.wide brand basket, which might lead to conflictof interest unless Effectively managed 6.CRT technology is losing popularity. 7.less focus on unconventional channel. 8. Not providing good service. 9.No exclusive show rooms RAMAIAH
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Opportunities 1. Videocon takes over the Electrolux. 2. Videocon buy Thomson color picture tube manufacturing plant. 3. Videocon international is going global. 4. Videocon exploring whole new segment 5. During the climate of Jaipur becomes hotter day by day and coolers do Not fully satisfy the customers requirement. This provides a great Opportunity for ac manufacturers. 6. Growing semi urban market. 7. Industry is in increasing phase. 8. Price has come down; now more and more people are going for it. 9. Due to financial facilities even the medium segment is going for it. 10. Purchasing power of people is increasing day by day. Moving into new attractive market segments. 11. Focused on unconventional channels. 12. Mergers joint venture of strategic alliances. Threats 1. Entrance of global competitor like china. 2. Brand loyalty is more of LG &other company. 3. Market condition like slumps in market. 4. A new competitor in your home market. 5. Competitor has a new innovative substitute product or service. 6. Increased trade barrier. 7. Brand reputation is not good. 8.Competition in global CPT market especially from integrated players such as LGPhillips, Samsung, and Matsushita is intense.

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CHAPTER-4

LEARNING EXPERIENCE

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LEARNING EXPERIENCE 1. During the project training in the market, I understand how it works practically from start point to end point. Before that I have only theoretically idea of marketing management. 2. It is great experience to see these entire things happen infront of eyes. It

enhances my practical knowledge from one level to another

level. 3. I have also learnt how corporate world functions and the importance of discipline in your work life. 4. My manager supperted me in gaining sufficient knowledge about the companyand industrythis help me complete the project successfully. 5. I have learned about the videocon products esp. television which are sales in India 6. I have learned about sales procedure of company. 7. I have learned about the competitors of videoco 8.

I became much more confidant and the experience has helped

me to brush my communication skills. 9. Apart from this entire thing it gives me real picture about supply chain. I visited each department & it is good learn experience to me when employees share their experience for the organization to achieve the goal. 10. I have learnt that to convince someone what is required is complete knowledge of your product and how will it benefit the client 11. The training was informative & educative. It was a practically

exposure to me. Observe different strategies adopted by company and its competitors. (Low price, quick delivery, good service) RAMAIAH
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CHAPTER-5

RESEARCH METHODOLOGY

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5.Research problem Problem Statement •

The problem of this project is to know that to what level customers are enjoying and aware of videocon TV offered by the company and what further improvement can be done in future in this area so as to get brand awareness. The main objective how to increase the reputation of videocon brand in the market

By this project I want to Create brand awareness of videocon so it help in seller in following way:

•

Videocon brand name makes it easier for the seller to process orders and tract down problems.

•

Videocon brand name provides legal protection of unique product features.

•

It become well-known brand helps the seller in segmenting the market.

•

Brand loyalty of videocon brand gives seller some protection from competitors and greater control planning.

•

Good

videocon

brand

awareness

helps

in

building

the

corporate image. •

Videocon brand awareness gives warranty of quality and satisfaction in the mind of the customers.

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Videocon brand awareness helps buyers / consumers in following •

ways

Brand awareness helps shoppers in moving quickly through super market or retail store and helps in making quick decisions.

•

For customer the videocon brand is Easy to identify and recognize

•

It should be distinctive and create a good imagein customer mind.

•

Should be capable of being registered and protected legally.

•

A deep brand must have Brand Equity.

Research methodology Research methodology is considered as the nerve of the project. Without a proper well-organized research plan, it is impossible to complete the project and reach to any conclusion. The project was based on the survey plan. The main objective of survey was to collect appropriate data, which work as a base for drawing conclusion and getting result. Therefore, research methodology is the way to systematically solve the research problem. Research methodology not only talks of the methods but also logic behind the methods used in the context of a research study and it explains why a particular method has been used in the preference of the other. RAMAIAH
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5.2. Research design: Research design is important primarily because of the increased complexity in the market as well as marketing approaches available to the researchers. In fact, it is the key to the evolution of successful marketing strategies and programmers. It is an important tool to study buyer’s behavior, consumption pattern, brand loyalty, and focus market changes. A research design specifies the methods and procedures for conducting a particular study. According to Kerlinger, “Research Design is a plan, conceptual structure, and strategy of investigation conceived as to obtain answers to research questions and to control variance. The General study was converged as a specific study for videocon. The study was initiated to find out the consumer profile, brand perception and cross preference among videocon and Competitor brands. Our approach to the research design tasks went through the following tasks. Information needed ? Measurement and scaling Procedures ? Appropriate Data collection ? Sampling Process and sample size ? Data Analysis plan RAMAIAH
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These issues are addressed as the following

◊

Research Type

Descriptive Research

◊

Data Type

Primary and Secondary data

◊

Research Tools

Questionnaire Observation Enquiry

◊

Sampling Units

customer/Dealers/ Retailers

◊

Sample Size

Customer (100)/Dealers/ Retailers (50)

◊

Sampling Method

Random Sampling Method

◊

Sample drawn from

Jaipur

5.3.Type The data collection was done through 1. Secondary Data Analysis 2. Survey Secondary data is obtained by contacting the retailer and dealers. 5.4.Scaling Techniques We asked the customers to rank the various attributes on a scale of very important, Important and not very important. To find-out the brand perception of various brands, paired comparison between them is used.

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5.5.Questionnaire Design Questionnaire design was the critical issue as the questionnaire reflects the survey purpose .The questionnaire was meticulously prepared by identifying the various variables. The same scale of yes/no and very important, important and not so important was used through out so as to make the respondent comfortable. Firstly a questionnaire was prepared and few people were surveyed. After this survey we realized the flaws in the questionnaire and then a modified questionnaire was prepared and people were surveyed on this modified questionnaire. 5.6 Sampling Techniques In the survey conducted, the sample was random in nature comprising of people from different age groups and income stratas. 4.7.Data Collection Data collection is the important step after the sample is selected on which the survey is being conducted. With data that is available in the hard form we converted that to electronic form, to analyze the data using the MS Excel softwares. In the data collection customers were approached during the working hours at dealers point.

The first part of the survey was a disguised survey was there was no mention of videocon as Organization. It was conducted as a part of institute project. Purpose of the survey was explained and was asked RAMAIAH
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whether they are interested to take part in the survey Later Questionnaire was handed over to them, and necessary instructions were given to complete the questionnaire .The questionnaires were returned back after filing up on their convince, While receiving the filled in questionnaire care was taken to check whether there are any unfilled items in the questionnaire. 5.8. Data Analysis The data of score of features and score of brand perception was fed into the excel sheet. Separate Excel sheets were employed for analysis of each brand and also to keep it concise and unambiguous. For data analysis I use many types of charts: • Pie chart: This is very useful diagram to represent data, which are divided into a number of categories. This diagram consists of a circle of divided into a number of sectors, which are proportional to the values they represent. The total value is represented by the full create. The diagram bar chart can make comparison among the various components or between a part and a whole of data • Bar chart: This is another way of representing data graphically. As the name implies, it consist of a number of whispered bar, which originate from a common base line and are equal widths. The lengths of the bards are proportional to the value they represent.

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5.9 Limitations of Survey Response Errors - These may arise when the respondents give inaccurate or incomplete answers. For e.g. in our survey a respondent may not mention that he had test driven a car before purchasing it A major problem faced in the survey involved the comparative ratings of various attributes for all the brands of cars. Many of the respondents were not very willing to rank so many factors as they perceived it to be time consuming. Open Ended Questions – All the questions in the questionnaire were open-ended to avoid any kind of bias from the respondents end. But a drawback of this approach is that there was an incomplete capture of his responses, as the respondent could not always ome out with the purchase steps and the time taken in them. The reasons for such inaccuracy could be because of unfamiliarity, fatigue, boredom, faulty recall and the Question format. Random Sampling Errors – This can occur, as the particular sample selected is an imperfect representation of the population of interest. The area covered in the survey was jaipur region and the customer preferences and tastes in different Regions could not be covered.

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CHAPTER-6

FINDINGS AND ANALYSIS

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Demographic profile Gender profile Male 28% Female 72%

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FAMILY-INCOME

• Income group determines the sector in which a company wants to foray and be a market leader; also knowing the income level of the customer will help the company to modify the products according the buying capability of the customer, which depends upon the Income level. • Here we have divided the customers according to Monthly Income and found that the most of the consumer income is below Rs10000,so they prefer only less costly television. • There is also good amount of people of high income (Rs 350000+) • Here I can infer that there is all income level people available in this segment so company need a good product range.

OCCUPATION DISTRIBUTION

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Inference:

•

This diagram show that most of the people occupation is private service. 


•

Also good amount of business man available here. 


•

By this we can know about difference in preference. 


•

By knowing occupation distribution clearlythe company can segment and target customer according to their occupation. 
 


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Awareness about videocon, SAMSUNG & LG by Customers (Given in percentage form)

From the above pie – charts, it is clear that most of the customers (62%) of Videocon came to know about Videocon through TV advertisement as compare to customers of Samsung and LG. As far as print media ad is concerned, only few customers came to know about Videocon through print media ad as compare to customers of Samsung & LG. But no customers of Videocon came to know about Videocon through hoardings and billboards, but few customers came to know about Samsung & LG through hoardings and billboards. Hence, we can infer that Videocon is doing positioning through TV advertisements rather than through print media ad and hoardings and billboards. They should more focus on word to mouth marketing because they are weak in this. RAMAIAH
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Why videocon, SAMSUNG or LG? (Given in percentage form)

Inference From the above figures, it indicates that people give more preference to price as compare to other attributes (Like Brand & Quality) while buying the Videocon products.

we observe here that service is not

good at videocon . Hence, we can infer that LG & Samsung are strong brand and having more quality than Videocon (as given in Table and Pie-chart). Also, LG & Samsung products are more expensive than Videocon.

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From where you prefer buying consumer durables  Co.shoppee  Showroom  Exhibitions  On-line

Inference: 1. A majority of customers prefer to buy from co.shoppee. Very less proposition of customers buys from Online and Exhibitions. 2. 49% customers are prefer to by from the showrooms because the showrooms are more convenient to customers they also think that these shops give more discounts. 3. People are less interested to buy from the exhibition they only visit the exhibition for price quotation of the product and the comparison of the product. RAMAIAH
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You prefer to buy from the same as you have mentioned in above que. Because of following reasons  Attractive Price  Service  Demonstrations  Offers  Convenience

Inference 1. Customers buy from showrooms because of the service and convenience. These are two main factors. 2. Customers are preferred to buy from the showroom because of they think that these convenient store may provide good after sell service. 3. Customer also thinks that there is more chance to bargain and they can get more discounts in these showrooms. 4. Price also a factor that attracts the customer in these showrooms. RAMAIAH
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Do you prefer any financial scheme to purchase consumer durable?  Yes  No

Inference 1. Majority of the consumer donot want to go for financial scheme. 2. 16% consumer is not a small amount, there is only t.v.few company which provide financial scheme 3. If t.v. Company easily provide this scheme to consumer so they can attract more customer.

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Would you wait for festive season for available discounts for purchase a Television?  Yes  No

Inference

By this we can infer some customer prefer to buy t.v. on some festival. North India is more belive in festival. On festival company can attract customer by give some typa of discount .

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Up to how much money are you willing to spend on a t.v? at this time: a) Less than 6000 b) 6000-13000 c) 13000-20000 d) 20000-30000 e) more than 30000

Inference: By this diagram I can infer than most of customer are see price, if company provide some good product with more features and style and design it will help in increse market share. Some customers are want to spend a big amount of money on t.v. these customer don’t care money because of high income so company also need to work on R&D, so company can provide a different product.

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How do you feel after using the videocon t.v? a) Excellent b) Good c) Fair d) Poor

Inference There is 19% customer who not satisfies with product and feels poor about the t.v. Company has to find out all the reason and should work on it. If company don’t attarct old customer this will become a big threat for company.

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CHAPTER-7

FINDING AND

RECOMMENDATIONS

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Dealer survey Findings 1. By calculating the display share we found that in most of store VIDEOCON has 24% display share almost all categories. 2. By the actual monthly sale of particular store we came to know the capacity of the store and how much product can they sale. 3. It helps us to know that weather dealer is capable of being a direct dealer of VIDEOCON or not and it also helps to find out the new dealer who are capable of being the dealer of VIDEOCON. 4. We also came to know while visiting the shops that there was big problem of after sale service. 5. Many dealers were facing the problem of after sale service because there is no follow up calls from VIDEOCON. 6. Demo calls also not done properly. 7. Videocon is on 3rd rank in jaipur CTV. 8. Sales promotion scheme are sufficient. 9. Pricr range preferred by consumer is generally in between 70000 to 13000. 10. Dealer are not satisfied with the incentive provided by the company 11. The top competitor of VIDEOCON product in Jaipur is LG and SAMSUNG. 12. In Jaipur area the performance of VIDEOCON is in better position but the competitor also hold closer margin. 13. There is high growth of sale in market due to booming in new technology and better service.

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14. Word of mouth plays a vital role in awareness among customer. This is one factor, which can play a good role in promotion of products as well as demonstration given by the shopkeeper also plays a vital role for customer. 15. Marketing growing so that is good sign for company in coming year. 16. Consumers are mostly gets attracted by the price discount offered by company and product warranty

RECOMMENDATIONS AND SUGGESTIONS 1. VIDEOCON should improve it’s after sale service because its hits badly VIDEOCONs market share in Jaipur region. 2. More detailed customaries service is to be provided. 3. The training to in shop demonstration should be given at frequent time interval and feedback should be considered positively. 4. The company should look into the matter of person hiring for in shop demonstration. A big VIDEOCON showroom should have at least 2 such kind of person. 5. VIDEOCON should try new dealer who have the potential. So they can target more market. 6. As there is a bottleneck competition between Samsung and VIDEOCON, it is necessary to take measure steps to overcome the area of downfall in VIDEOCON with respect to Samsung. 7. The marketing managers should make better relations with dealers and reputation of the company. 8. Customer considers quality as their first preference, so the company should give more stress on this. 9. The switching of customer from VIDEOCON product to other brand is due to the bed after sell service in shop. RAMAIAH
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10. The product is well aware and it is on top of mind of customer. So company should always improve services and update their technology.

CUSTOMER SURVEY FINDINGS 1. Secondary supports play an important role in the customers mind and create awareness

among

the

customers.

The

secondary

support

includes

Demonstration, Exhibition & Even Sponsors. 2. From the survey it was found out that the majority of customers don’t buy consumer durables from exhibitions. They just visit the exhibitions to see the co. latest model. 3. They want to buy from the showrooms or from co. showrooms. For them service is important. Beside convenience and other factors service is key factor. 4. Also majority of customers do not want any financing scheme for purchasing the durables. 5. There was heavy rush on weekends so large numbers of ISD’s were appointed that day. Also the live demo calls helps in selling. Exchange offers also generate sale. 6. Customers are also now very choosy in buying the product and it is important for the company to make loyal customer of their brand. 7. In survey we found that VIDEOCON has captured maximum market share in every category. VIDEOCON dominates CTV, LCD, and Refrigerator, and Washing machine, category. RAMAIAH
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8. The product is well aware and it is on top of mind of customer. 9. Customers are also now very choosy in buying the product and it is important for the company to make loyal customer of their brand. 10. Spending on advertisment and publicity of less as compare to the competitors. There is need to increase advertisement. Consumer prefers electronic media for advertisement and retailer also prefer TV advertisement. 11. The quality of videocon CTV is acceptable to the market. Consumer and retailer both are satisfied with the quality of videocon CTV. 12. Consumers are mostly gets attracted by the price discount offered

by

company and product warranty. 13. The categories of the people who are using the CTV are mostly economic income people. 14. LG and samsung are competitors of videicon ‘s CTV. 15. Consumers are aware about videocon TV. 18.Customer perception about videocon TV is good. 16. Advertising of videocon CTV is not striking as compaer to the competitors

RECOMMENDATIONS AND SUGGESTIONS

•

Exhibitions do not help to generate so much sells but they should be conducted regularly. This helps in generating awareness regarding the product in customers, which ultimately helps in sales.

•

Also it is helps in advertising for the new products. Like in this exhibition new LCD was advertised. Company should always focus on service.

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•

Display share should be increased where there is less than 50% as VIDEOCON also believes that “JO DIKHTA HAI WO BIKTA HAI”.

•

Company should try to improve service. No doubt the company products have technically edge over competitors but in long run it may hamper the company’s profit.

•

Company should concentrate more on its major drivers LCD, IT, and GSM. Branding and promotions should be done effectively as it creates a long lasting image in the mind of customers.

•

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

CONCLUSION Jaipur market is still a virgin market for these techno-survey Videocon products. Customers need to be made aware of the productive usages of these products if Videocon want to target these untapped market segments of customers and rural customers. Also Videocon need to modify their advertising strategies in order to promote these products and services. This also a challenge for Videocon, for a positive thinking about Videocon Hence Videocon need to work upon the real factor through Dealer and Retailer for a KAIZEN continuous productivity in these products will make these products more friendly and customized. Hence Videocon will be able to win a major market share between the competitors.

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ANNEXURE

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DEALERS QUETIONARIES Dear Sir/Madam, I, student of RIMS (ramaiah institute of management studies) Bangalore am conducting a survey for the television industry. We request your kind cooperation 1. Name of the Dealer/Retailer……………………………… 2. Address……………………………………………………………… ………………………………………………………………………… ………………………………………. 3. Mention the brand name of the T.V presents in your Showroom? 1

2

3

4

5

4. What are the ranges of price that the company offers? ................................................................................................................................ ............................................................................................ 5.Rank the various brands in order of their selling 1

2

3

4

5

6.Why the rank 1) Product is sold high? a) Less Price

[ ]

b) Design and style

[ ]

c) Good brand image

[ ]

d) Good product features [ ] e) After Sales Services

[ ]

f) Durability

[ ]

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7.Why the rank 2) Product is sold high? a) Less Price

[ ]

b) Design and style

[ ]

c) Good brand image

[ ]

d) Good product features [ ] e) After Sales Services

[ ]

f) Durability

[ ]

8.Why the rank 3) Product is sold high? a) Less Price b) Design and style c) Good brand image

[ ] [ ] [ ]

d) Good product features [ ] e) After Sales Services

[ ]

f) Durability

[ ]

9.What more can the company do to increase its sales? ……………………………………………………………………………… ………………………………………………………………………… 10. According to you which company has the best marketing strategy? ……………………………………………………………………………… ………………………………………………………………………… 11.Any Suggestions:……………………………………………… …………………………………………………………………………… …………………………………………………………………………… RAMAIAH
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CONSUMER SURVEY QUESTIONNAIRE Dear Sir/Madam, I am student of RIMS (ramaiah Institute of Management studies) Bangalore and as part of our curriculum I am conducting a market research. I would like your cooperation for the same, with an assurance that all the information, which you’ll give, will remain confidential. Customer’s personal profile: 1. Name…………………………………………………………………………. 2. a) Age ( In years )

: ……………………………………............................

b) Gender (please tick)

: Male / Female

3. Educational Qualification…………………………………………………….. 4. Address. ……………………………………………………………………… ……………………………………………………………………………......….. 5. What is your occupation? a) Business

b) Govt. Service

c) Pvt. Service

d) student

e) others

6. What is your monthly income? a) Below Rs 10000

b) Rs 10000-15,000

b) Rs 15,000-25,000

d) Rs 25,000 -35000

e) Rs 35000+ Consumer Survey for various Brands of television: 1. Which of the company’s products would you prefer to own? a) Videocon c) BPL

b) LG d) ONIDA

e) samsung

f) Others (please specify) ……………………………………… RAMAIAH
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2. Why you prefer this company product? …………………………………………………………………………… 3. What were the factors that persuaded you to come to your chosen brand? a) Company advertisements: b) Talk to friends and colleagues c) Dealer’efforts d) Any other; please specify ……………… 4.Do you prefer any financing scheme to purchase consumer durables? a) Yes

b) NO

5. While purchasing consumer durable which parameter influences you? (Please rate the following sources of information) Price.

………………………

Brand Image

………………………

Product feature ……………………… Service.

………………………

Durability

………………………

Design and style ................................. 6. From where you prefer buying consumer durables? a) Co.shoppee

b) Showroom c) on-line d) exihibition

7.You prefer to buy from the same as you have mentioned in Q.6 because of following reasons? a) Attractive Price b) Service

c) Demonstrations d) Offers

e) Convenience 8. Up to how much money are you willing to spend on a t.v? At this time: a) Less than7000 d) 25000-35000

b) 7000-13000

c) 13000-25000

e) more than 25000

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9. Would you wait for festive season to avail discounts? a) Yes b) No 10. Which TV Channels do you watch on a regular basis? ………………………………………………………………………………………… ………………………………………………………………………………………… 11. Which Newspaper/Magazines do you read? ………………………………………………………………………………………… …………………………………………………………………………………………. 12. How do you feel after using the videocon t.v? a) Excellent

b) good

c) fair

d) poor

13.Any other comments. ……………………………………………………………. ...……………………………………………………………………………………… ………………………………………………………….. …………………………… Thank you for participating in the survey

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REFERENCE: Books Philip

•

Kotler,

Marketing

Management,

13 t h

Ed,

Princeton – Hall India 2009 •

Marketing Research – Naresh K. Malhotra

•

Business research method- S. N. Murthy

Website: •

Http: www.videconworld.com

•

http: www.google.com

•

http: www.wikipedia.org

•

www.in.lge.com

Magazines • Business today • Business world Newspapers • Economic Times • Times of India I AM ASHOK KUMAR A MBA STUDENT PLEASE WRITE ME CORRECT FEEDBACK ABOUT MY PROJECT. ID

[email protected]

[email protected] Thanks…all the best

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