“MARKETING ANALYSIS”

ON

Submitted in partial fulfilment of the requirement for the award of

Bachelors of Business Administrative

(BBA)

Made By: Under Guidance of:

Gaurav Chauhan

BharatiVidhyapeethUniversity

School of Distance Education

Academic Study Centre- BVIMR, New Delhi

ACKNOWLEGEMENT

Project work is never the work of an individual. It is more a combination of ideas, suggestions, and

contribution and work involving many jobs. One of the most important parts of writing a report is the

opportunity to thank all those who have contributed to it. The list of expression of thanks, no matter how

extensive, is always incomplete and inadequate. This acknowledgement is no exception.

I want to express my sincere gratitude towards who provided me with her expert guidance and invaluable

suggestion.

I would like to thank my classmates and all those who directly or indirectly helped me in one or the other

way in the successful completion of the project.

TABLE OF CONTENT

CHAPTER 1: INTRODUCTION OF COMPANY:-

1. Nature of business.

2. Types & ownership pattern.

3. Organization structure.

4. Production structure.

5. Organizational strategies.

CHAPTER 2: INDUSTRIAL ANALYSIS:-

1. Industry overview :- (Growth rate of industry, contribution to GDP).

2. Current Issues :- (From newspaper, Journals-for company and industry).

3. Key competitors.

4. Environment scanning:-political environment, economic environment, socio-cultural

environment, technological environment, environmental issues (Green environment) and legal

environment.

5. Porter’s five forces model of competition-Michael Porter.

CHAPTER 3: MARKETING STRATEGIES:-

1. Products of company.

2. 4Ps (Product, Price, Place & Promotion).

3. STP (Segmentation, Targeting and Positioning).

4. Distribution channels.

5. Promotion strategies.

CHAPTER 4: KEY LEARNING’S FROM THE COMPANY AND RECOMMENDATIONS:-

1. Performance Analysis of the Company.

2. Market share/growth rate of company.

3. SWOT Analysis of the Company.

CHAPTER 5: RESEARCH METHODOLOGY

1. Objective of the study.

2. Research Methodology

3. Questionnaire Methodology

CHAPTER 6: Findings

CHAPTER 7: Conclusions and Suggestions

Bibliography

CHAPTER 1: INTRODUCTION OF COMPANY:-

INTRODUCTION

Videocon Industries Ltd. was one of the initials companies that made it to the World. Videocon Electricals

captured the initial Indian Electrical market and topped the charts for its products such as Refrigerators,

television etc. before other players such as Samsung, Whirlpool etc .entered Indian market. Videocon was

one of the first Electronic Company to Collaborate with Japanese Toshiba Ltd as early as 1985.

It is one of the biggest Indian Electrical brands not only in India but also globally. Indeed, Videocon is one

of the fastest paced Electrical Products worldwide. Videocon thus posed an exciting opportunity to study a

brand that is automatically associated with youth and technology.

Videocon deems it a privilege that it is in a position to prolong instances of joy and spirit. And lend much

needed variety and flair in everyone's life.

An Indian multinational, a global force in display technologies and a group on the threshold of even

bigger things. There are new horizons to breach, new frontiers to conquer and simply no pause buttons on

the Videocon play. Expect the unexpected, the uncharted and the unlimited.

1.1 NATURE OF BUSINESS

Manufacturer & Exporter of Conventional Colour TV and LCD TV Receiver Sets, D2h Set Top Box,

VCD/MP3 Players, Air Coolers, Music Systems, Airconditioners, Home Theaters like Refrigerators,

Automatic & Semi Automatic Washing Machines, Dish Washers, Microwave Ovens, Mixer, Grinders and

Water Purifier like TV, DVD/MP3 & Audio Components, Glass Shells for Colour Picture Tubes, Populated

PCBs, Tunners, Monitors for Computer, Compressors and other Electronic Assemblies and Sub-Assemblies

like Digital Diaries, Kiddy PC, Data Projector, Power Inverter, Digital MP3 Player and Palm Top like ISP,

Content and Web Solutions.Crude Oil Extraction 50000 Barrels per Day.

1050MW Power Generation. Videocon LCD TV, Videocon Air Conditioners, Videocon Refrigerators,

Videocon Washing Machine.

1.2 Type and Ownership Pattern

Figure1.1: Consumer Electronics, Home Appliances & Compressor manufacturing in India

Videocon enjoys a pre-eminent position in terms of sales and customer satisfaction in many of our consumer

products like Color 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. Refrigerator manufacturing is further supported by our in-house compressor manufacturing

technology in Bangalore. Videocon has the largest distributed manufacturing base across India – 12

facilities. It has the Capacity to manufacture 4 million CTVs, 2.5 lacs washing machines, 1 mn. DVD

players, 4.8 mn refrigerators.

Display industry audit components

With the Thomson acquisition Videocon has emerged as one of the largest Color 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.

Color 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 sector globally.

Logo Logic

This is the new Videocon symbol. It reiterates the ethos of a company dedicated to maintaining the highest

international standards of excellence through quality, technology and innovation. For over a decade now,

Videocon has been bringing the latest and very best in Consumer Electronics and Home Appliances.

Successfully adapting the best of internationaltechnology to suit Indian needs, and crafting it to improve the

quality of life – as million of satisfied customers will agree.

Figure1.2: Logo of Videocon

The new symbol of Videocon asserts its passion for global impact, and the two ‘E’s on either side represent

the Group’s wide spectrum of interests ranging from ‘Electronics to Energy’. Along with the steely glint,

this communicates the group's global ambition, its strength, sterling credentials and innovative drive. A

symbol that proclaims a paradigm shift.A sign that represents the new force that is Videocon.Thus

recapitulating our principle of reaching out and touching the lives of millions of people Worldwide.

OWNERSHIP PATTERN

Table 1.1: Ownership Pattern

Sr.

NoCategory of shareholder

Number of

shareholders

Total number

of shares

Number of shares held

in de materialized form

As a %

of (A+B)

As a % of

(A+B+C)

(A) Shareholding of Promoter and Promoter Group

(1) Indian

(a) Individuals/ Hindu Undivided Family 13 1619838 1292950 0.87 0.73

(b) Bodies Corporate 44 153823583 152711452 82.6 69.57

Sub-Total

(A)(1)

57 155443421 154004402 83.47 70.3

(2) Foreign

(a) Individuals (Non- Resident

Individuals/ Foreign Individuals)

0 0 0 0 0

(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

(A)(2)

0 0 0 0 0

Total Shareholding of Promoter

and Promoter Group (A)=

(A)(1)+(A)(2)

57 155443421 154004402 83.47 70.3

(B) Public shareholding

(1) Institutions

(a) Mutual Funds / UTI 21 36571 35228 0.02 0.02

(b) Financial Institutions/ Banks 36 304403 291166 0.16 0.14

(c) Insurance Companies 5 5600352 5599752 3.01 2.53

(d) Foreign Institutional Investors 95 13467563 12706367 7.23 6.09

Sub-Total

(B)(1)

157 19408889 18632513 10.42 8.78

(2) Non-institutions

(a) Bodies Corporate 1927 5516620 4962476 2.96 2.5

(b) Individuals

(i) Individual Shareholders holding

nominal share capital up to Rs. 1 lakh

342862 4685290 2998613 2.52 2.12

(ii) Individual Shareholders holding

nominal share capital in excess of Rs.

1 lakh

19 1171618 1171618 0.63 0.53

(c) Any Other (specify) 0 0 0 0 0

Sub-Total(B)(2) 344808 11373528 9132707 6.11 5.15

Total Public Shareholding (B)= (B)

(1)+(B)(2)

344965 30782417 27765220 16.53 13.93

TOTAL(A)+(B) 345022 186225838 181769622 100 84.23

(C) Shares held by Custodians and against

which Depository Receipts have been

issued

2 34867863 34862403 0 15.77

GRAND TOTAL

(A)+(B)+(C)

345024 221093701 216632025 100 100

1.3 Organisational structure of Videocon

Figure1.3: Organisational structure of Videocon

1.4 Production structure

Cost cutting – Videocon was better positioned to shift the activities to low-cost locations and also it could

integrate the operations with the glass panel facility in India with the CPT manufacturing facilities acquired

from Thomson S.A. Videocon wanted to leverage its position in the existing parts of the business and this

acquisition would give it a strong negotiation position and could reduce impact of glass pricing volatility.

Videocon could also reduce the costs by upgrading and improving the existing production lines.

Vertical Integration – The acquisition helped Videocon in vertically integrating its existing glass-shell

business where it had been enjoying substantially high margins.[8] Videocon’s glass division had the largest

glass shell plant in a single location. This gave the company an unrivalled advantage in terms of economies

of scale and a leadership position in the glass shell industry. The acquisition also gave Videocon a ready-

market for its glass business and it was part of Videocon’s long-term strategy to have a global vertically-

integrated manufacturing facility.

Rationalization of Product Profile – Videocon modified its product profile to cater to the changing market

needs like moving away from very large size picture tubes to smaller ones.

Apart from the overall strategy Videocon also had a plan on the technological front. It wanted to improve the

setup for the production line and line speed post-merger. Its focus was to increase sales while reducing the

costs and thereby improving the productivity of the existing line. The company also wanted to foray in a big

way into LCD panels back-end assembly. On the sales front the company wanted to leverage on the existing

clients of Thomson and build relation as a preferred supplier to maximise sales. Also, Videocon could

benefit from OEM CTV business with the help of Videocon’s CTV division, invest for new models and

introduction of new technologies.

Videocon has not been able to turn the plant around in Italy still. However it is getting support from the local

governments (which want to prevent job cuts) in form of grants. The government is in fact trying to set up a

Greenfield venture in form of a LCD manufacturing facility in partnership with Videocon. The banks are

also supporting Videocon and with help from all these quarters Videocon expects to turn around the plant in

Italy.[13] The Thomson plant has not turned around in Mexico as well and in fact production has been

reduced over there.InPoland,the situation is more promising and Videocon hopes that plant over there will

get in black in the very near future.[14] However the surprise has been in the Chinese market .Despite facing

a highly competitive market Videocon has managed to turn a plant around while the other is on its way. In

China Videocon is adopting a different strategy for manufacturing CTVs as the local players dominate the

market .It plans to supply these players by taking advantage of low-cost nature of mainland(the number

targeted by it about 6 million CPT,s)

1.5 VIDEOCON STRATEGIES

1.5.1 Multi-brand strategy

Videocon International was the first Indian company to adopt the strategy of multi-brands. Apart

from its mid-priced brand Videocon, the company now hawks Toshiba, a premium brand, and the

low-priced brands Akai and Sansui. The multi branding technology paid off as Videocon managed to

hold on to a combined market share of around 19.6 percent, with LG at 25.9 percent and Samsung at

around 13.8 percent.

Overall, the shift in the power to trade is probably one of the defining developments. It is important

since the TV companies themselves have taken it seriously and embarked on crafting longer-term

strategies to accommodate this development. The effectiveness of their strategy and the responses of

the other players promise to deliver a few more years of enterprising developments in the Indian TV

market.

1.5.2 Backward Integration

Videocon integrated backwards by getting into manufacture of components such as electron guns,

metal parts and deflection yokes for CTVs and compressors, and electric motors and plastic

components for households appliances such as washing machines, refrigerators and Air conditioners.

The group integrated further to get in to manufacture of glass panels and funnels, the key components

for the manufacture of color picture tubes.

“Videocon enjoys a unique synergy in the global CTV business from glass to CRT (Cathode Ray

tubes) to CTVs. - (From Sand to CTV). Together with other components for households appliances.

This high degree of backward integration bestows upon the company a unique benefit over

competition.

1.5.3 Videocon's Revenue mix

Figure 1.4: Videocon's Revenue mix

1.5.4 Performance Measures

Figure 1.6: Performance Measures

CHAPTER 2: INDUSTRIAL ANALYSIS

2.1 Industry overview

COMPANY’S PROFILE

Figure2.1: Today the group operates through 4 key sectors:

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. Refrigerator manufacturing is further supported

by our in house compressor manufacturing technology in Bangalore.

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 Italy, Poland and China, continuing to lead through new

innovative technologies like slim CPT, extra slim CPT and High Definition 16:9 format CPT.

Color 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

sector globally.

2.2 Current issue of Videocon

Figure2.2: Videocon V1688 Twist & Turn available in market

Description:

Videocon V1688 Twist & Turn is the new stylish and well designed mid-range mobile phone by

Videocon which has just been launched in the market. The mobile comes loaded with lots of

attractive and impressive features as well as dimension. This mobile is priced at Rs. 6,995/- in

Indian market which is affordable than other mobiles having same features.

Videocon V1688 Twist & Turn is the 90 degree roted full QWERTY keyboard impressive mobile

phone that has 3.2 inches touchscreen display screen. This display screen of the device generates

resolution of 320x480 that shows pictures of better quality.

This amazing designed mid-range mobile has all the music features such as MP3 and MP4 with

formats of 3GP, AVI, RMVB video etc. It is boasted with a 2 mega pixel of camera that can

capture photographs at resolution of 1600x1200 pixels and video recording at format of 3GP and

15fps. It is also loaded with dual speakers for loud music and a 3.5 mm audio jack.

The mobile supports Java language, EDGE & GPRS and stereo Bluetooth streaming (A2DP),

while comes pre-loaded of popular social networking sites like MSN, Yahoo, Facebook and Skype.

The mobile comes pre-installed a 2GB microSD while its memory can be upgraded up to 4GB

through using a memory card.

The mobile, Videocon V1688 Twist & Turn, supports dual SIM (GSM+GSM) that provides

excellent networking facility. This impressive handset is corporated with a solid 1000 mAh battery

that allows long talk and standby time. The mobile is available in Red, Yellow and Silver colour

shades.

2.3 IMPORTANT COMPETITORS

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 major-

LG, 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.

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.

Besides understanding the strategy adopted by different players, several other factors-

industry 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.

2.4 ENVIRONMENTAL SCANNING

PEST ANALYSIS

1. Political Factors

Labour unions effects a lot the production

Resolution to reduce emission of carbon footprints in the atmosphere

Anti-dumping duty on imported color picture tubes

Suppliers(Supplier Power)

Potential entrants(Threat of

Entry)

IndustryCompetetito

rs(Segment

rivalry)

Buyers(Buyer Power)

2 . Economical Factors

Growth of retail sector ± expected to reach 16% by 2011-12from 4% in 2007

High investments are needed in the consumer durables

Emergence of organized retail market with large players likeCroma, Next, Reliance Digital –

leading to lower prices and higher varieties

3 . Social Factors:

Changing perception of luxury to necessity

In rural areas there is poor infrastructural facilities likeavailability of electricity

Demand of the consumer durables is seasonal and cyclic

Highly growing consumer durable market

4 . Technological Factors:

Improved electricity consumption

Higher quality products

Technological is changing at a very fast rate

2.5 PORTERS MODEL

Figure 2.3: Porter’s Model

In order to understand the industry better, we analyze the industry using Porter’s Five Force Model-

- Threat to entry

- Rivalry of among existing firms

- Bargaining power of buyers

- Bargaining Power of Suppliers

- Threat of Substitutes

Threat to Entry-

Entering the CTV market isn’t very easy. One of the most important features needed is a good

distribution system which isn’t something that can be developed overnight.

Also a television today is a style statement. Therefore the brand plays an important role in

influencing the purchase decision. For a new company then entering this market, not having a

recognized brand name is a threat to entry.

Rivalry among existing firms-

There is strong competition among the current players. The main players being LG, Samsung, Onida,

Videocon, Philips, Sansui. Some of the regional players are- Hyundai and Haier are new entrants in

the CTV space in addition to a number of small regional players.

This increased competition has ensured that advertising costs are an integral part of the players’ total

cost. A lack of product differentiation means that price is a competitive feature that intensifies

rivalry. The highest price reductions during 2002-03 to 2005-06 were in the 20inch and 21inch

CCTV category.

With the future being in LCDs, this market is likely to see price reductions future.

It is expected that realizations will fall with increased competition.

Bargaining Power of Buyers-

The TV market today is a consumer’s market where the consumer has the upper hand with him

having the power of choosing from a variety if brands.

This bargaining power of the buyer has forced the players to offer credit facilities on sale, to provide

lower EMIs and excellent after-sales service.

The intense dealer competition also benefits the consumer in terms of prices and offers available.

Inventory carrying costs for television companies are high. This is a boon for the consumers as it

translates into higher bargaining power for the consume

Threat of Substitutes-

For a television, the substitute can only be a functional substitute. The functional use of a television

is to watch programs, live events etc. This today can also be done on a computer.

Theaters too can be a substitute to watching movies at home.

Today with various multiplexes and theaters providing screenings of live events such as sports

telecasts etc along with the luxury of good food and the opportunity to enjoy the event with a

number of other enthusiasts, the TV can be substituted if the TV is bought only to watch certain

events.

However if the television on considered to be a style statement and a lifestyle statement, then

consumers will seek to keep upgrading the type and the model of their television sets.

Bargaining Power of Suppliers-

PCBs (Printed Circuit Boards) & CRTs (Cathode Ray Tube) are key raw materials in the production

of CTVs.

CRT accounts for 46-48 per cent of the total raw material costs of a CTV. PCBs and housing

components account for 33-39 per cent of total raw material costs.

Domestic CPTs prices tend to follow Global price trends. Therefore the suppliers do not have much

of bargaining power in this regard.

Cabinets are sourced from plastic manufacturers and as these manufacturers supply to different

industries, they therefore do have a bargaining power, especially in comparison to CRT suppliers.

CHAPTER 3: MARKETING STRATEGIES:-

3.1 PRODUCTS OF COMPANY

CONSUMER ELECTRONICS

Figure 3.1: Figure of Plasma

Figure 3.2: Figure of Split A/C

Figure 3.3: Figure of Window A/C

Figure 3.4: Figure of Mobile Phone

Figure 3.5: Figure of Washing Machine

Figure 3.6: Figure of Refrigerator

Figure 3.7: Figure of Home Theater

Figure 3.8: Figure of Dish TV

Figure 3.9: Figure of LCD Television

3.2 4P’s

The 4Ps includes the Product, Price, Place and promotion.

Product Mix

Product mix is the set of all product and items a particular seller offers for sale. Product mix consists of

various product lines.

The width of a product mix refers to how many different product lines the company carries. The Videocon

television has product mix width of five lines. I.e. plasma, LCD, Slim, flat and Conventional.

The length of a product mix refers to the total number of items in the mix.

i.e. for the line of LCD the length is 2 as it has two items 50” PDP and 42” PDP.

The depth of the product mix refers to how many variants are offered of each product in the line, i.e. For

LCD the depth will be 2. As Videocon is offering only one product in 50” PDP and 42” PDP.

The three product-mix dimensions permit the company to expand its business in three ways.

It can add new product lines, thus widening its product mix.

It can lengthen each product lines.

It can add more product variants to each product and deepen its product mix.

Width, Length & Depth

Width = 5 (Plasma,

LCD, Slim, Flat,

Conventional)

Plasma LCD Slim Flat Conventional

50”PDP42” LCD 29” slim 29” flat 21” FFST

42”PDP32” LCD 21” slim 21” flat 20”conv

26” LCD 15” flat 14”conv

20” LCD

19” LCD

Length 5 2 3 3

In the product mix of Videocon, it is having 37 different models, which gives them their product line Depth.

PLASMA

Plasma television technology is similar to the technology used in a fluorescent light bulb. The display itself

consists of cells. Within each cell two glass panels are separated by a narrow gap in which neon-xenon gas is

injected and sealed in plasma form during the manufacturing process.

The main advantage of Plasma over CRT technology is that, by utilizing a sealed cell with charged plasma

for each pixel, the need for a scanning electron beam in eliminated, which, in turn, eliminates the need for a

large Cathode Ray Tube to produce video images. This is why traditional televisions are shaped more like

boxes and Plasma televisions are thin and flat.

Advantages of Plasma Television:

Largest Screen Formats.

Superior Contrasts.

Versatile.

Capable Of Displaying Full HDTV &Dtv Signal.

Capable Of Displaying Xga, Svga&Vga Pc Signal.

Wide Viewing Angle.

Wide Rage Of Richer Color Over 16 Million.

Superb Realistic Images.

Less Expensive Than Lcds.

Life More Than 30,000 Hours.

Wide Screen Aspect Ratio around 16:9.

Perfect Flat Screen.

Uniform Screen Brightness.

Slim & Space Saving Design.

50" PDP

Integra 50

10000:1 Contrast Ratio

3:2 & 2:2 Pull Down

HDMI Compatible

3-D Video Noise Reduction

PC Input

42" PDP

16.77 Million Color

10000:1 Contrast Ratio

3.2 & 2:2 Pull Down

1500cd/m2 Brightness

HDMI Compatible

3-D Video Noise Reduction

LCD

The flab’s are out and now technology has switched over to sleek and slim products, LCD being the

prominent amongst them. LCD technology is the recent breakthrough in consumer electronics and because

of its esteemed advantages this segment is growing day by day.

Videocon are launching this range under the sub brand “Integra”. “INTEGRA” term indicates the integration

of various systems connectivity with LCDTV.

This is an integration of best sound quality and excellent picture quality.

What is TFT-LCD?

Meaning of this term is Thin Film Transistor–Liquid Crystal

Display. TFT technology used in this category offers the best image

quality in flat panels. This technology is also called as Active

Matrix Technology.

40" LCD, 32" LCD, 26"LCD, 20" LCD, 19" LCD

Slim

With Continuous Research & Development, Videocon brings a revolutionary advancement in physics &

brings new Slim & Trim Television.

The Most significant feature of the Slim & Trim Television is its one kind of super slim picture tube

technology. This has enables us to make the TV 42% Slimmer.

Slim Picture tube is a product with reduced depth providing the TV and monitor producers with opportunity

to design Slim, flat and stylish TVs comparable to plasma or LCD panels maintaining Good picture Quality

29" SLIM

21" SLIM

Flat

Videocon Bada Woofer with Surrounds Bass Technology

Bass Amplification by Dynamic Alignment (BADA) woofer is a revolutionary technology that offers a new

sound to create an unbelievable sound space

Videocon unique Bazoomba Woofer Technology

Videocon's superior Bazoomba Woofer Technology incorporates a unique conjugate arrangement of Woofer

motors that ensures rich bass reproduction.

The Bazoomba Woofer Technology

Enables the generation of the lowest bass frequencies from a small enclosure (Bazoomba tube). Enables

cleaner and tighter bass reproduction due to acoustic cancellation of distortion in the even harmonics

29" TFT

21" TFT

15" TFT

Conventional TV

21" FFST

20" CONV

14" CONV

Pricing

The pricing of the Videocon’s various models is as following.

Plasma TV : Rs. 59,990 - 2, 40,000

LCD TV : Rs. 28,400 – 89,900

Slim TV : Rs. 10,400 – 18,900

Flat TV : Rs. 5,500 – 18,400

Conventional TV : Rs. 4,600 - 9,500

Place

Videocon has its presence all throughout India.

They have their presence in 25 states and each state has at least 2 divisions per state. In total they are having

78 divisions.Videocon has around 1800 dealers in India. They are having 96 service centers across India.

Promotional Activities

Focusing on LCD, Plasma and 29” Flat TVs since 2006.

By institutional selling. Company used both TVC as well as print media for promotion. The company is

using outdoor media promotions in hording and bus shelters to high light the feature packed advantages.

Major tie ups in the background IIT alumni/ Videocon Santos ham film awards 2006 with ZEE and ICC

Cricket champions trophy.

Seasonal offers

Trip to Germany during FIFA world cup

Videocon bonanza offer ( har din diwali) during diwali

Chance to win car, motor bike and LCD TV'

3.3 SEGMENTATION, TARGETING & POSITIONING (STP)

SEGMENTATION :

Market segmentation is the process in marketing of dividing a market into distinct subsets (segments) that

behave in the same way or have similar needs. Because each segment is fairly homogeneous in their needs

and attitudes, they are likely to respond similarly to a given marketing strategy. They are likely to have

similar feelings and ideas about a marketing mix comprised of a given product or service, sold at a given

price, distributed in a certain way and promoted in a certain way.

The process of segmentation is distinct from targeting (choosing which segments to address) and positioning

(designing an appropriate marketing mix for each segment). The overall intent is to identify groups of

similar customers and potential customers; to prioritize the groups to address; to understand their behavior;

and to respond with appropriate marketing strategies that satisfy the different preferences of each chosen

segment.

Segments based on Income

Plasma: Income group of more than 50,000

LCD: Income bracket of Rs 20,000 and above

Slim: Consumer in the income bracket of Rs 9000-15000

Flat: Consumer in the income bracket of 7000-12000

Conventional: income bracket of Rs 3000-6000

Segments based on social class

Plasma: rich class

LCD: upper middle class and rich class

Slim: middle class

Flat: middle and lower middle class

Conventional: lower economic class.

Benefit Segmentation :

Conventional, Flat screen Slim, LCD, and Plasma can also segmented on the basis of benefits that an end

consumer would receive from them.

User Status:

TV market can be classified into non users of TV and potential users in term of graduating to a higher

segment like slim, LCD,Plasma from basic conventional TV.

Loyalty status:

On the basis of Loyalty status

Hardcore Loyal: brand loyal to Videocon for a long time in terms of purchasing products of Videocon

Shifting Loyal: who shift loyalty from other brands to another

Switchers: not loyal to any brands so attract them to Videocon and convert they brand loyal.

TARGETING:

Once the firm has identified its marketing-segment opportunities, it has to decide how many and which ones

to target. Marketers are increasingly combining several variables in an effort to identify smaller, better-

defined target groups.

The decisions involved in targeting strategy include:

* Which segments to target?

* How many products to offer

* Which products to offer in which segments

In premium segments like flat screens and FDPs the growth in sales has been many times the industry

growth. More importantly, high end product sales are no longer restricted to metros. Consumer in tier-2

cities seems to be as evolved in lifestyle needs. The consumer profile, too, has changed. Higher disposable

incomes, greater aspirations and younger demographic have increased demands for the technologies. And

Videocon is targeting this segment.

POSITIONING:

Positioning has come to mean the process by which marketers try to create an image or identity in the minds

of their target market for its product, brand, or organization. It is the 'relative competitive comparison' their

product occupies in a given market as perceived by the target market.Once the competitive frame of

reference for positioning has been fixed by defining the customer target market and nature of competition,

marketers can define the appropriate points-of-difference and points-of parity associations.

Points of Parity (POPs) are associations that are not necessarily unique to the brand but may in fact be shared

with other brands. They represent necessary-but not necessarily sufficient-conditions for brand choice.

Videocon's Points-of-Parity are good quality Picture and good sound.

Points-of-Difference (PODs) are attributes or benefits consumers strongly associates with a brand, positively

evaluate, and believe that they could not find to the same extent with a competitive brand.

Videocon's POD is the quality product with low cost.

With the strong backward integration Videocon can provide the products with low cost.

Thus, Videocon is positioned itself as a reliable and value-for-money product

3.4 DISTRIBUTION CHANNELS IN THE INDUSTRY

The Refrigerator companies in the industry use different distribution channels to reach the customer. These

are as follows:

1.   In this type of channel the company uses its sales representatives to deal with the dealers directly. The

dealers place the order through the sales representatives who visit them periodically, and the products are

delivered directly from the company.

Some companies appoint Direct Dealers who act as their Franchisee Outlets or their Exclusive showroom.

Figure 10: DISTRIBUTION CHANNELS

2.   In this channel of distribution the company appoints distributors on the basis of District/ Population /No

of Dealers to be handled by one distributor. The area of operation and its potential is also taken into

consideration.

Some of the companies make the distributor totally responsible from appointing the dealers to providing

after sales service.

Figure 11: DISTRIBUTION CHANNELS

 

3. In this channel of distribution the company appoints Distributors as well as Direct Dealers. The company

appoints distributors to deal with small dealers who order small quantities. With the dealers who have good

potential and sales the company deals directly. The Korean Multinational follow this channel where they

appoint Distributors for upcountry towns and direct dealers for big cities and major towns eg. Ahmedabad.

Figure 12: DISTRIBUTION CHANNELS

4.    In this channel the company appoints a C&F agent who acts on behalf of the company. The C&F agent

is totally responsible for appointment of Distributors and Direct Dealers. He sells to both the Distributors

and the Direct Dealers at the same rates.

Figure 13: DISTRIBUTION CHANNELS

 

3.5 PROMOTION STRATEGIES

Product strategy

1. Stop all curved CPT production

2. Shift focus to LCD CTVs; target: by December 2007.

3. Launch Slim21” and focus Slim 29” immediately. Target is to have almost all CRTs production

shifted to Slim by 2007

4. Take full advantage of Digital and HDTV revolution, gain leadership in HDTV Slim TV segment

through OEM and model mix worldwide strategy.

5. Study unique product range / pro large to fill market gaps in markets such as Asia and Eastern

Europe / CIS / South America

6. Focus on reduction of costs through reduction of glass, shift to AK mask and reduction of process

rejection.

Sales Strategy

1. Improve relationship with existing clients ; Use of Thomson’s excellent relations as preferred

supplier to maximize sales

2. Improve service and quality without putting pressure on price structure

3. Fetch a better price and avoid crisis of huge stock.

4. Leverage Slim product offering

5. Launch LCD panels assembly to be a major actor of the Flat Panel Displays market (which is

expected to account for 50% of the market by 2012).

6. Benefit from OEM CTV business with the help of Videocon’s CTV division, invest for new models,

introduction of new technologies.

7. upgrade to LCD's schemes

easy EMI.

Re. 1 offer.

8. Improve after sales service

9. Free service camp on the wheels.

Industrial Strategy

1. Consider improvement in production lines set-up: investments, line speed up / mergers? Target is to

increase output and decrease product costs by increasing productivity of existing lines

2. This will reduce manpower and overheads per picture tube by 30% that will be redeployed on new

activities in the sites (new technologies)

3. Improve the furnace output in the Poland Glass factory by making some changes into furnaces

including electrical boosting. Consider increasing capacity through one more furnace.

4. t is envisaged that 100m€ will be invested in the next 2 years for this purpose

5. Expand into LCD panels back-end assembly (from buying LCD arrays from big suppliers like LG,

SDI, CMO, AUO, Sharp)

Cost Strategy

1. Leverage the strong base of Videocon’s glass business: Thomson-Videocon partnership will have a

very strong negotiation position and can reduce impact of glass pricing volatility.

2. Reduce production cost by upgrading and improving the production lines. Thomson-Videocon

partnership will have its own base of additional 4 million units CTV (other than India)

3. Necessary to rationalize R & D efforts, necessary to make its cost below 1.5% of sales

Product Development

1. i-TV – web enabled TV at the price of 13,900 with exchange offer for an older version.

2. TVs With hard disk to store programs.

3. Wall mounted Flat CTVs at the price of 12,990.

4. Aimed at fulfilling needs of customer who can not buy LCDs but prefer to do away with CTV

models which occupy space in living rooms.

5. CTVs with inbuilt set top box

6. Tie up with DTH player and provide annual subscription offer.

7. to provide Direct to home services.

8. Bluetooth enabled CTV.

CHAPTER 4: KEY LEARNING’S FROM THE COMPANY AND

RECOMMENDATIONS:-

4.1 Analysis of Net Profit

EARNINGS: Videocon, July- September net profit Rs.1.6 bln, up 7% on year Videocon Industries Ltd

Thursday reported net profit of Rs. 1.6 billion for Jul-Sep, up 7.14% from a year ago.In a news release, the

company said its net sales in the quarter were Rs. 29.85 billion, up 14% from a year ago.Total expenditure

for the quarter stood at Rs. 25.95 billion, up 14.7% from a year ago.Raw material cost expanded 17.6% to

Rs. 10 billion and employee cost stood at Rs. 499.4 million, up 47.8% from a year ago.Revenue from the

consumer electronics and home appliances segment was at Rs. 27.31 billion, up 18.6% from a year ago and

revenue from crude oil and natural gas segment was down 20.3% at Rs. 2.54 billion.The company said it has

extended its current accounting year by three months and thus the current year will be of 15 months

beginning Oct 1, 2009 and ending Dec 31, 2010.

Profit loss account

  Sep ' 09 Sep ' 08 Sep ' 07 Sep ' 06 Sep ' 05

Income

Operating income 9,163.04 9,753.65 8,285.42 7,218.82 5,460.25

Expenses

Material consumed 5,614.40 5,291.05 4,954.79 4,162.74 3,070.27

Manufacturing expenses  773.74 1,285.85 988.23 986.28 916.22

Personnel expenses 126.42 115.82 105.35 94.70 49.53

Selling expenses 550.04 505.07 470.62 412.12 360.47

Adminstrative expenses 224.47 163.62 94.21 222.71 207.96

Expenses capitalised - - - - -

Cost of sales 7,289.07 7,361.40 6,613.19 5,878.56 4,604.44

Operating profit 1,873.97 2,392.25 1,672.24 1,340.26 855.81

Other recurring income 27.39 71.92 71.55 127.21 35.66

Adjusted PBDIT 1,901.37 2,464.18 1,743.79 1,467.47 891.47

Financial expenses 665.75 431.86 337.17 254.75 244.96

Depreciation  577.15 660.21 418.39 484.00 320.15

Other write offs - - - - -

Adjusted PBT 658.46 1,372.11 988.23 728.72 326.36

Tax charges  177.68 312.67 227.68 95.16 -166.03

  Sep ' 09 Sep ' 08 Sep ' 07 Sep ' 06 Sep ' 05

Adjusted PAT 480.78 1,059.43 760.55 633.56 492.40

Non recurring items -80.12 -205.14 94.67 -139.82 -152.50

Other non cash adjustments 73.68 0.72 3.54 0.30 2.36

Reported net profit 474.34 855.01 858.76 494.04 342.26

Earnigs before appropriation 2,536.34 2,306.65 1,696.84 932.95 602.36

Equity dividend 46.25 22.95 80.30 77.35 55.19

Preference dividend 3.68 3.68 3.68 3.39 2.50

Dividend tax 8.49 4.53 14.27 11.32 8.09

Retained earnings 2,477.92 2,275.49 1,598.59 840.89 536.58

Profit and Loss account of this firm show that operating income of this firm is increasing. It was

5460.25 in Sept 2005, but on Sept 2006 it increasing to 7218.82. This increase shows the growth of this firm.

On the other hand, expenses Sept 2005 is 3070.27 Rs. it was also increasing to 4162.74. But expense of this

firm continuously increasing on the other hand operating income increasing in Sept 2008- 2009 by 590.62.it

show that firm growing rate falling. In short we can say that firm expenditure rate is more than income rate.

it shows that firm is doing strongly in the market.

Throughout the balance sheet

the firm mainly source of firm money is secured loan because it is increasing continuously, it was 2776.10

on Sept 2005 but in Sept 2006 it was 3608, it means firms large amount of money arrange from secured

loan. Firm is also getting fund from issuing of share capital firm future power reserve and surplus also

increasing it show that increasing rate power. Balance show the financial position of the firm.

4.2Market Share and Growth Rate of Videocon

Videocon Industries Ltd

Videocon holds 25% market share in the consumer goods market in India. It is oneof the largest CPT

manufacturers globally, with operations in India, Mexico, and Italy

Videocon, founded in 1985, is today one of the largest corporate groups in India. It is now venturing into

power and telecom. It is one of the largest manufacturers of Colour Picture Tube (CPT)globally. It has close

to 25% market share in home appliances segment in India and aims to double this business in next five

years. Apart from its core businesses, the company isaiming to grow its power and telecom (handset and

services) businesses aggressively through large scale investments.

Figure 4.1: Market Share (%) for FY09

Videocon Industries is primarily engaged in two core businesses

Manufacturing, assembly, marketing and distribution of consumer electronic products & home

appliances

Consumer Electronics, Home Appliances & Compressor manufacturing: Products include home

entertainment systems,microwave ovens, Colour Picture Tube (CPT) & liquid crystal display

(LCD) televisions, refrigerators, washing machines, airconditioners, small appliances, glass

shells, compressors / motors and other components

The Company has Research & Development centres located in China, India and Japan

Display industry and its components: Manufactures colour picture tubes at its facilities in Italy,

Poland and China

Colour Picture Tube (CPT) Glass: Operates manufacturing facilities in India and Poland

The Company, through its wholly owned subsidiaries and JVs, is engaged in exploration activities in oil &

gas fields in Brazil, Mozambique, East Timor, Oman and Australia

Entry into the Telecom business: In March 2010, Videocon Telecommunications Ltd, a unit of

Videocon Industries Ltd, launchedmobile services based on the global system mobile (GSM)

platform

Power business: Pipavav Energy, the Company’s subsidiary, is implementing a thermal power

project in Gujarat with a capacityof 1,200 MW; Videocon is also considering power projects in the

other parts of India and evaluating alternate technologies forthe same.

Plans to set up three more thermal power generating units with a combined capacity of 4,800MW in

Maharashtra,Chhattisgarh and Asansol, with a total investment of USD6.5bn

The equity shares of the Company are listed on the Bombay Stock Exchange and National Stock

Exchange of India; the Global DepositoryReceipts (GDR) and Foreign Currency Convertible Bonds

(FCCB) issued by the Company are listed onthe Luxembourg Stock Exchange and Singapore

Exchange Trading Securities respectively

Company

4.3 SWOT ANALYSIS

The SWOT is a strategic planning tool to evaluate Strength(S) Weakness(W) Opportunities(O) & Threats(T)

involved in a project, in a business venture or in any other situation requiring a decision. The SWOT

analysis is to explained with help of following diagram

Strengths:

1. Technological skills

2. Leading Brands

3. Distribution Channels

4. Customer Loyalty/ Relationships

5. Production Qualtiy

6. Scale

7. Management

Weaknesses:

1. Absence of important skills

2. Weak brands

3. Poor access to distribution

4. Low customer retention

5. Unreliable product/ service

6. Sub-scale

7. Management

Opportunities:

1. Changing customer tastes

2. Technological Advances

3. Change in government politics

4. Low personal taxes

5. Change in population age

6. New distribution channel

Threats:

1. Changing customer base

2. Closing of geographic markets

3. Technological advances

4. Changes in government politics

5. Tax increases

6. Change in population age

7. New distribution channels

CHAPTER 5: RESEARCH METHODOLOGY

5.1 OBJECTIVE OF THE STUDY

The ob j ec t i v e o f t he p ro j e c t i s f u r t he r c l a s s i f i ed i n to p r ima ry and secondary objective.

Primary objective:-

Find out the market size of refrigerator (in percentages) of different brands in  NCR. Fo r t h i s

pu rpose , t he r e sea r che r ha s t o do a su rvey by i n t e rv i ewing t he households and finding

out the market share of Videocon brand in accordance with other brands.

Secondary objective:-

To know where does the Videocon brand of refrigerator stands in comparison to other brand and what

are the various aspects where it needs to improve in order to remain in the market and compete with other

brands.

5.2 RESEARCH METHODOLOGY

A survey has been done and data is collected from various company s̀ purchase manager all over

Guragon and some part of Delhi. Primary data has been collected by interviewing customers and purchase

managers, while secondary data has been collected from the sites of Videoconworld.com.

Sampling plan for survey

Sampling  units Purchase  manager  and  customer

Sampling  size 5  companies  and  200  customer

Sampling  area Gurgaon

5.3 QUESTIONNAIRE METHODOLOGY

The questionnaire has to be self administered in order to know the exact views & some other suggestions of

the purchase manager and customers the questionnaire were administered in the form of a small interview.

The advantages of the questionnaire method is its versatility, almost every problem of making research can

be approached from the questionnaire standpoint. Every marketing problem involves people & its solution

can be obtained by asking these people about the problem.

Data analysis procedure :-

The data has being analyzed using excel wherein various factors have been determined & their

frequencies have been measured. Some of  the factors to determine are as following.

Brands:-

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

terms of sales, after sales services & services provided quality etc.

Awareness level :-

The awareness level regarding the different types of air conditioners is judged according to the

people purchasing it.

Purchase manager and customer network:-

Various attributes were rated & then ranked by the purchase manager and customer involved in

purchase of the product namely, excellent, good, satisfactory & poor and what changes they want

to improve Videocon A.C.

Positioning level:-

The positioning of air conditioners is judged by the total number of  customers asking for the brand

name & are willing to pay for the same. This is also termed as the pull  factor.

DATA ANALYSIS AND RESULT:-

The market survey showed that the sales volume of Videocon is the highest followed by Daikain,

Carrier, Hitachi, LG and other AC companies.

QUALITY OF AIR   CONDITIONERS:-

Daikain serves as the top leader in providing best quality to its customers, followed by Hitachi and

then Videocon.

CUSTOMER CONSIDERATION OF PRICE:-

According to the market survey conducted 300 company`s manager and customers considered price

as a major determinant while buying Videocon air conditioners, because Videocon started new

scheme  “Corporate Sales”.

POSITIONING OF VIDEOCON AIR   CONDITIONER IN THE

MARKET :-

Amongst the dealers surveyed 41 % agreed  that the positioning of  Videocon  air  conditioner  in the

market is excellent  whereas  33% feels that it is good ,  & 17% says that is satisfactory and

remaining 13% says poor.

MAINTAINENCE OF GOOD PUBLICRELATION :-

According to the market survey conducted, About 77% of the correspondent say that Samsung

maintains a good public relation with its dealers whereas 23% does not have the  same response.

INSTALLATION AND   OPERATION:-

According to the market survey conducted, Hitachi leads the market in providing services in

terms of installation & operation followed by Videocon, Daikain, Blue Star, Carrier, Voltas, LG

and then  ogeneral.

ADOPTION OF VARIOUS PROMOTIONAL TOOLS:-

Advertisement is regarded as one of the major promotional tools with a share of 51%

followed by sales promotion, personal selling and direct marketing.

MAINTAINENCE OF SUFFICIENTNET WORK:-

Amongst the Managers, dealers, Customer surveyed 79% said that Samsung maintained a

sufficient network whereas while 21% provided negative response.

CHAPTER 6: FINDINGS

FINDINGS

With strategically located manufacturing bases and an enviable distribution network of around 90 branch

offices, 10,000 distributors & 400 after-sales service centers across India, VIL enjoys a unique 80% plus

penetration in the market place.

A high degree of backward integration ensures that VIL has most of the vital components under its control

and bestows upon it unique benefits over competition – uninterrupted supply, shorter turnaround time, cost

advantage and quick adaptation to changing customer needs.

VIL is looking to strengthen its presence through a host of big ticket acquisitions/asset buyouts – Daewoo

Electronics (South Korea), Chunghwa Picture Tubes (Taiwan), Pioneer (Japan) and other brown-field

expansions will help VIL expand its horizons.

VIL’s glass division, VNG, is the largest single location glass shell plant, enjoying economies of scale and a

leading position in the global glass shell industry. Additionally, integration of its acquired Thomson Colour

Picture Tube (CPT) plants with its Indian business would not only reduce the cost of production, but also

give its glass shell units a ready market.

The Thomson acquisition includes R&D centres and access to over 2,000 patents, which would enable VIL

to launch new products as well as counter the threat posed by the conventional TV market being rapidly

overtaken by hi-tech products in overseas markets.

Increasing demand & high prices in the oil & gas industry will not only lead to improved realizations, but

along with low operating costs that the Ravva oil & gas field enjoys, it can translate into a bonanza for VIL.

VIL has earmarked USD 13 MM (FY07) & USD 24 MM (FY08) as capex for its oil & gas business, in order

to increase the extraction from the field. It has also embarked upon Infill Well Drilling and exploration &

production of three new blocks; LM-403, Back Fault Block & LO-110, all in the Ravva field. The probable

reserves in the Ravva Oil field are estimated to be as high as 400 MM barrels, of which only about 160 MM

barrels have been produced. Thus, a huge upside potential exists for the company.

VIL is exhibiting substantial panache by fruitfully working towards bidding for and more often than not,

attaining exploration and production rights in many countries around the world. It is well on its way to

earning remarkable profits & achieving a prominent global standing.

CHAPTER 7: CONCLUSIONS AND SUGGESTIONS

CONCLUSIONS AND SUGGESTIONS

Turbulent is the word that aptly describe the scenario in CTV industry last financial year. Marketers by

frequent price cuts and larger than live Marketing game plans, competition reached its new highs and lows.

It is no longer sufficient to just be competitive, a company which has to survive has got to have competitive

advantage. One needs to take strategic initiative in the short run to achieve the desired “positioning” in

future. One has to foresee ‘tomorrow’.

Understanding competition today involves three levels:

Competition for intellectual leadership for new ideas that create new advantages.

Competition for translating these ideas into product/service faster than others.

Competition for market share.

Do not nature any PARADIGMS because today “anything is possible”

Search for newer markets than expanding your customer base.

Come out with state of the art, feature packed affordable and competitive advantageous products.

Set Benchmarks for growth.

Improve up on distribution channels for viable coverage of the market.

Wear out competition through trend setting, inimitable tactical moves based on our infrastructure strengths.

The strategic intent should be clear down the management.

Work on your strengths i.e. Infrastructure, financial base, backward integration.

POP and MERCHANDISING material should be mad as per international market.

CORPORATE TRAINING PROGRAMME for Development of manpower from external faculty.

We have so far identified the various areas on which Videocon and other major Indian companies need to

improve upon to achieve the desired level of competitiveness. Only these improvements would give

Videocon and the other Indian companies base to compete with the MNCs and help the Indian companies to

reduce the impact of MNCs on the Indian Market in the future. Indian manufacturers will have to react

quickly because any delay in reacting to the threat posed by the MNCs would only give the MNCs time to

establish themselves in the market. With their expertise and financial capacity they would be nearly

impossible to compete with once they get a firm foot hold in the market. The future

But the battle has only started, and the foreign companies are here for the long term. They can sustain losses

for years to come in order to gain market share. What they are doing at present, is building up distribution

networks to cover every nook and corner of the country and, setting up manufacturing facilities.

Only those Indian manufactures which have a strong focus on manufacturing and technological up gradation

will survive in the long run, although with a much smaller market share than they have at present. Small

companies will be sidelined totally and will exit from the CTV market altogether.

Videocon has always been driven by its Value -for-money strategy. The company needs to identify critical

success factor and work assiduously towards achieving it.

SUGGESTIONS

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 Polland has opened up big opportunities

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

the way for an unassailable lead in the market.

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

looking to add more explorations and production depth as also oil bearing assets. The group will also get into

gas distribution in India significantly.

BIBLOGRAPHY

1. http://en.wikipedia.org/wiki/Videocon

2. http://www.videoconworld.com/

3. http://www.google.co.in/

4. www.branders.com

5. www.viewcentral.com

6. www.eventmarketer.com

7. www.mobilemarketingjoblist.com