A

PROJECT REPORT

ON

“MARKETING STRATEGY FOR VIDEOCON”

SUBMITED TO

PUNE UNIVERSITY

SUBMITED BY

RITESH KUMAR

MMM (2009-2011)

IMEX, PUNE.

2

ACKNOWLEDGEMENT

“….. The beauty of the destination is half veiled and the fragrance of the success half dull until the

traces of all those enlightening the path are left to fly with the wind spreading word of

thankfulness…”

Keeping this in view; it would be unfair on my part if I don’t mention my gratitude to

Mr. Avanindra Kumar (Zonal Marketing Officer, Videocon Industry Ltd.); who gave me the

opportunity to get training in such a recognized company. His guidance and knowledge helped me to

learn professionalism in the real sense.

I would like to express my deep sense of gratitude to Prof. Ravi Potnis, director IMEX, pune for

providing me such an environment to achieve the goals and to prosper in the corporate world.

I am also grateful to my internal project guide Prof. Abhijit Khasnis, IMEX; Pune who supported

his complete support to make me deliver my best.

Ritesh Kumar

3

TABLE OF CONTENTS

Sr. No. Particulars Page Number

FROM TO

1. Executive summary 5 5

2. Company profile 6 12

4. Major competitors 13 13

5. Existing marketing strategy of Videocon 14 22

6. SWOT analysis 23 24

7. Research methodology 25 27

8. Analysis and Interpretations 28 46

9. Findings 47 48

10. Recommendations 49 49

11. Conclusion 50 50

12. Limitations 51 51

13. Questionnaires 52 53

14. Bibliography 54 54

4

EXECUTIVE SUMMERY

I have done my project titled “Marketing Strategies for Videocon, at Jaipur.

In my project work my main objectives are to sort out the tools and requirements that should

be implemented by Videocon to grow its market share. Know how to aware the customer

about the product of Videocon.

For accomplishment of this objective, I

used descriptive research methodology and started my project with my first step, which was

identifying respondent. I selected the sample for my research on the basis of convenience

sampling in which I collected data’s through those respondent who came in trade expo which

were organized in Jaipur and by meeting some customers in the multi brand outlets and

dealers. The method of data collection was personal interview and questionnaire only.

From collected data I found a lot of valuable information through which

I did my study on assigned objective, and concluded it in respective head. At the end of the

report writing I have given some of the suggestion to the Videocon for better performance in

the market.

5

COMPANY PROFILE

HISTORY OF ELECTRONIC INDUSTRIES

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

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

developments in consumer electronics mainly with transistor radios, Black &White TV, Calculators

and other audio products. Color Televisions soon followed. In 1982- a significant year in the history

of television in India – the government allowed thousand of Color 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 electronic goods during which the industry

witnessed continuous and rapid growth.

From 1991 onwards, there was a first economic crisis 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 $ 20 Billion but

according to estimates, has the potential to reach $ 22 billion by 2011. The largest segment is the

consumer electronics segment.

6

HISTORY OF VIDEOCON

Videocon is an Indian multinational with interests in Consumer Electronics, Home Appliances,

Colour Picture Tube Glass, and Oil & Gas. Videocon was founded in 1987 by Nandlal Madhavlal

Dhoot. At that time it used to manufacture TV and Washing Machine. In 1989-90, Videocon started

manufacturing Home Entertainment Systems, Electric Motors & AC. Videocon entered Refrigerators

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

1996 it ventured into Kitchen appliances and crude oil segment. In 1998, Videocon started

manufacturing Compressors & Compressor Motors. In the year 2000, Videocon took over Philips

Color TV Plant. In 2005, Videocon took over 3 plants of Electrolux India and acquired Thomson

CPT. Today; it has evolved into a giant conglomerate with annual revenues of over U$4.1 billion.

CURRENT SCENARIO

The consumer durables market in India is valued at US $ 4.5 billion currently. In 2008, microwave

ovens and air conditioners registered a growth of about 25%. Frost-free refrigerators have registered

significant growth as many urban families are replacing their old refrigerators. . Washing machines,

which have always seen poor growth, have seen reasonable growth in 2006. More and more Indians

are now buying electrical appliances due to change in electricity scenario. The penetration level of

color televisions (CTVs) is expected to increase 3 times by 2010.

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

7

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 color 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 2010.

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

around 30 per cent annually. Some of the important factors that boasted this growth also include the

increasing awareness of the advantages of LCD televisions, the growing availability of the product

across dealer counters and the Finance schemes in the market. Besides this, as a manufacturing hub,

the television industry is improving more and more. There are many domestic and MNC companies

that have increased their production bases in the country. Easy availability of low cost skilled labour

and the emergence of SEZs, which are tax-free zones are some of the key factors that have resulted in

growth of these manufacturing units. In fact, encouraged by tax-breaks, new manufacturing units are

coming up in less-developed regions now.

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

terms of manufacturing facilities for glass and 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 players in consumer durable products companies are:

LG SAMSUNG

PANASONIC SONY

VIDEOCON

8

MANAGEMENT:MANAGEMENT:

The hierarchy of Videocon Company is as follows.

CHAIRMAN

CEO

GENERAL MANAGER

V.P.R&D

AD MANAGER

M.R.EXECUTIVE

(A.C.)

M.R. EXECUTIVE

(T.V.)

M.R. EXECUTIVE

(WASHING MACHINE)

M.R. EXECUTIVE

FRIDGE

9

V.P. MARKETING

V.P.H.R.

V.P. OPERATION

V.P. FINANCE

SALES MANAGERM.R. MANAGER

MARKET SHAREMARKET SHARE :

Being the biggest company in the FMCD sector, Videocon enjoys the 12% market share. Videocon

targets to achieve the 15% market cover in next year.

12%

28%

26%

18%

16%

VideoconLGSamsungSonyothers

10

PRODUCT

There are different brands of the Videocon Company, which are currently in use throughout the

world. This company not only deals in the consumer durable product but also others like oil & gas,

color picture tube glass, etc. Videocon launching new product in market, customer point of view.

Product of Videocon:

Television

o Flat

o Ultra Slim

o LCD

o LED

o Conventional

Washing machine

o Front Loading

o Fully Automatic

o Semi Automatic

Refrigerator

o Frost Free

o Direct Cool

Air-condition

o Window AC

o Split AC

Micro-Oven

o Solo

o Conventional

o Grill

Players

11

The overall volume of this company is as follows.

43%

16%

20%

11%

10%

TV WASHING MACHINE AIR-CONDITIONREFRIGERATOR OTHERS

12

MAJOR COMPETITOR

LG

SAMSUNG

SONY

13

EXISTING MARKETING STRATEGY OF VIDEOCON

TARGET MARKET:

Videocon Industries is eyeing a growth of 35-40% in terms of value for the next fiscal 2010-11. It

plans to achieve the desired growth by introducing new product lines, various offers and revamping

its service centers across 20 cities. As the consumer gets conscious about spending money with the

global meltdown, at present the demand is high for mid segment product line-up.

“The focus for Videocon Group is rural markets and major growth is going to come from these

markets, which are growing at over 22%. The group has recognized high Market Potential Value

(MPV) and Market Intensity Index (MII) locations with potential and future prospects to strengthen

the business operations and spread consumer reach

MAJOR SEGMENT:-

Major segments are basically those people who plan to make a new home and planning to marry.

There are so many people who take electronic product within 5 year and those people who take 6-7

year. So, their basic segments are those people who take this electronic product. The basic segment

on Rural and Semi Urban area where many people like to buy the electronic product.

FACTOR AFFECTING SALES:-

There are many factors, which affects the sales of Videocon. To name a few:

1. Per capita income

2. Competitors

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3. Festival time (like diwali, wedding time)

MAJOR CUSTOMER NEEDS:--

First of all the majority don’t care that what they are going to have. In other words, they don’t care

before purchase that whether it is “Videocon” or “LG”. They don’t actually differentiate between

these two brands in order to their technology and quality.

They believe on “BRAND AND QUALITY”

Consumer’s availability in brands is basically works like:

Push availability

Pull consumer’s demand.

For this reason Videocon have provided their event and others social work like participated in games

and others educational activities in the market. They have maximum number of event and others

social activities in the market. They provide this interior infrastructure free of cost just to provide

Videocon to their customer, which they want to be purchase.

Their salesman and mechanics regularly visit all the shops where Videocon has its infrastructure to

check that either it is in proper condition or not, if not then they immediately change or modified it.

And day to day visit on the counter and make a customer query and easy and ass possible as solve the

problem in less time.

THREATS FROM COMPETITORS

Threats are well planned. Price is the major threat. When price goes certain beyond the exact price

whether come down or go higher its effects the consumption of electronic goods. Because when the

price go higher people go for the substitute of “Videocon” i.e. LG. and when price goes down they

think that there is must be something wrong in it. In short it all depends on customer’s perception.

15

TARGETS THAT WOULD LIKE TO ATTAIN

Every organization runs on the bases of profit maximization so Videocon is also looking for a high

profit margin.There are three major ways of making money

Overnight profit

Windfall profit

Ethical and un-ethical ways

Over Night Profits:-

They could be over night profit that is for the number 1 brand for the year. This could be got my

increasing sales volume.

Windfall Profit:-

Can be windfall profit. They are the extras profit. When the consumption the consumption is on

boom. So, there is different kind of profits.

Ethical and Unethical Ways:-

Profit can also get through ethical and unethical ways. They believe on this quote

“Everything is fare in love and war”.

Some profits stays for some time like “over night profits” and some just come and go like “wind fall

profits”. And they can also get profit through different approaches.

16

EXPANDING TARGET MARKET

In last 2 years Videocon has come back in aggressive manner.

Consumer has choice

Attractive brand logo and slogan

Brand differentiating

Consumer Has Got Choice:-

Now the consumer has got choice. Because now they know the name of another big brand,

though Videocon is the 5nd best name but it can get a better position after some time?

Attractive Brand Logo and slogan:-

Now the consumers know the Name of Videocon, because Videocon is the name, which is the

most popular word in India. Videocon has change own logo with attractive slogan

“EXPERIENCE CHANGE”. So people can better differentiate brands with each other.

Brand Differentiation:-

Now different companies have got different brand names. So, people can distinguish between

brands. Five major brands “Videocon”, “Samsung”, “LG”, “Sony”, and “Philips” also have

brand names.

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STRATEGIES OF GETTING GOALS I.E. “HIGH PROFITS”

To increase the price is the least thing, which Videocon can adopt. There are so many ways through

which Videocon can increase the profits. Some major ways are as follows.

Volume can be increased

Interest level of consumers

To take part in energetic festivals

How to increase the volume of consumers?

Videocon can increase the volume by expanding the industry of Videocon. Through advertisements,

offering different interesting things to attract people towards this product.

How to increase the interest level of consumers?

Videocon is increasing the interest level of consumers by offering different new technology and

reduce price and to be provide better service.

For example Videocon is increasing the number of technology in “TV”, this is one of the product of

Videocon. Through offering different technology Videocon and to be reduce the price of Videocon

product according to competitor and to provide the after sales service can increase the Level of

consumers and through this profit can be gained.

How to take part in energetic festivals?

Videocon is already taking part in the festival like “Diwali” since last 2 years. Videocon offers

different attractive things in their festival and through this Videocon gained high profit and

consumption of Videocon increased on these occasions. And year 2010-11 people were anxiously

waiting that what interesting thing Videocon is going to offer and to be makes good services.

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Existing Videocon strategy:-

Product Strategy

1. Stop all curved CPT production

2. Shift focus to LCD CTVs, ref. and wash-machine; target: by December 2010.

3. Launch slim 21”, LED, and wash-machine and focus slim 29” immediately and LED and

refrigerator. Target is to have almost all CRTs production shifted to Slim.

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

segment through OEM and model mix worldwide strategy.

5. Take capture the market of washing machine by ……………………….

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

Europe / CIS / South America

7. 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/LED 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. Launch new range and new quality of washing machine and refrigerator.

7. Benefit from OEM CTV business with the help of Videocon’s CTV

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Division, invest for new models, introduction of new technologies.

8. Upgrade to LCD's schemes and other home appliance product.

A. Easy EMI.

B. Re. 1 offer.

9. Improve after sales service

10. Free service camp on the wheels.

11. To organize the event in the market.

12. To create the personal relation between the customer.

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. it 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, and Sharp

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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

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’t 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.

9. New range of wash-machine, refrigerator and air-condition, with new colour.

21

New Product Line

Introduce CCTVs as it has the demand in several areas like restaurants, airport, Railways stations,

banks, hospitals, shopping malls, company offices.

“A lifestyle statement”

People do not see the television as a mere electronic device providing sight & sound. It has now

become an entertainment experience and a lifestyle statement that people are willing to pay for. Since

consumers are ready to shell out money for a lavish entertainment experience, there is today no limit

to the number facilities that a television can envision of offering. From in built recording to internet

facilities to supreme sound etc. The opportunity for this industry lies in coming up with new features

to the conventional CTV. There is therefore lot of

scope for growth and innovation.

22

SWOT ANALYSISStrengths

1. Videocon has largest distributed capacity manufacturing base across India with 17 facilities

and plant in china, Poland, Italy, 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.

2. Fewer margins to the distributor/dealer.

3. Weak promotional strategy of Videocon.

4. No proper approach of target customer.

5. Wide brand basket, which might lead to conflict of 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.

23

Opportunities1. Videocon takes over the Electrolux.

2. Videocon buys 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

customer’s 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.

Threats1. 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 LG Phillips,

Samsung and Matsushita are intense.

24

Research Methodology

Research methodology is away to systematically solve the research problem. It may be understood as

a science of studying how to research is done scientifically.

In it we study the various steps that are generally adopted by researchers, in studying our research

problem along with the logic behind it.

It is necessary for the researchers to know not only the research method techniques but also the

methodology.

Research process-Research process consists of series of action or step, which is necessary to

effectively carry out research and desired sequence of these steps.

Sample design

After deciding on the research approaches we concentrate on designing sampling plan. Which called

three decisions?

Sampling unit

Sample size

Sampling procedure

25

Define Research Objective

Preparing Research Design

Collecting The data

Analysis the Data

Interpret

Report

1. Sampling unit:-

Who is to be surveyed? We targeted builders in different areas of Jaipur. Once sampling unit

is determined it becomes easy to determine the sampling plan.

2. Sample size:-

How many people should be surveyed? We targeted 140 customers and 25 dealers in Jaipur

for data collection and further analysis.

3. Sampling:-

Procedure: how the respondent should be chosen? To obtain a representative sample,

probability sample of the universe should be drawn. We choose 140customers and 25 dealers

by the random sampling from Jaipur and upcountry.

SURVEY

The survey was conducted in the field of with the help of personal interview and scheduling. The

questionnaires contained a series of question which was aid while conducting the personal interviews.

Personal interviewing tends to be o greatest opportunity for gathering abdicant information.

The survey is conducted in the key towns of Jaipur as the respondents were scattered all over.

Data collection

Once the sampling design has been finalized, we concentrated on the data collection. These data were

helpful for further analysis.

1. Primary data

2. Secondary data

Primary data:-

26

Primary data are those data which are collected a fresh and for the first time & thus happened to be

original character.

We collect primary data during the course of doing descriptive type research and in survey, and then

we obtain primary data either through personal interview or by the questionnaire or by the

observation with respondents.

Secondary data:-

That are already available i.e. they refer to data which has already been collected & analyzed by the

someone else like list of potential distributors, retailers ,dealers are provide by company.

27

ANALYSIS AND INTERPRETATIONS

Customer Bashed Questionnaire

1. Which brand of electronic product would you like to buy?

Sony___, Samsung___, LG___, Videocon ___ Others ____

LG SAMSUNG VIDEOCON SONY OTHERS0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%28%

26%

18%20%

8%

Series 1

No. of customer – 140

According to survey finding 28% customer purchase LG brand product, 26% customer

purchase Samsung brand product, 20% customer purchase Sony brand product, 18% customer

purchase Videocon product and 8% customer purchase others brand.

28

2. Generally, when you like to buy the electronic product?

LG

SAMSUNG

VIDEOCONSONY

OTHERS

0

2

4

6

8

10

12

14

jan-marchApril-June

july-Sept.Octuber-December

12

10

8 9

4

14

12

10 11

7

1211

98

3

1110

7 8

5

jan-marchApril-Junejuly-Sept.Octuber-December

No. of customer – 140

According to survey finding mostly customer like to buy the product in period of

July - September or April – June period and January – March or October -December period

customer did like little no. of consumer durable product to buy.

3. Which of the following brands has been bought by you since last one year?

Sony___, Samsung___, LG___, Videocon___, Others__

29

LG SAMSUNG VIDEOCON SONY OTHERS0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

28.00% 26.00%

18.00% 20.00%

8.00%

Series 1

No. of customer – 140

According to survey finding the customer bought the product last one year LG brand product

bought and Samsung respectively 28% and 26%. And Sony bought 20% where as Videocon

bought 18% in last one year and others brand customer bought the 8% product.

4. Where would you like to buy the product?

Exhibition_ __, Authorized Dealer ___, Showroom ___Co-shopper___

30

LG SAMSUNG VIDEOCON SONY0

2

4

6

8

10

12

14

11

8

6

10

12

10

9

7

14

12

11

13

6

5

2

4

showroomco-shopperAuthorized DealerExhibition

No. of customer – 140

According to survey finding the customer would like to buy the product in Authorized Dealer and

showroom, where as the less customer like to buy the product in Co-Shopper.

5. Please rate the following sources of information according to the level of importance of each

source

Friend’s ___

Retailer ___

Advertisements ___

31

Magazines or newspapers ___

Any Other____

LG SAMSUNG VIDEOCON SONY OTHERS0

10

20

30

40

50

60

24

28

18

28

323134

58

36

60

45

52

32

60

12

1815

18

12

6

22

1114

4

30friendsretaileradvertisingmagazinesothers

No. of customer – 140

According to survey finding the customer getting information by advertising and retailers

through. Others median to getting information by magazine and friends circle.

6. How much satisfied are you with Videocon product?

Highly Satisfied____, Moderately Satisfied____, Neither satisfied nor dissatisfied___,

Moderately Dissatisfied___, Highly dissatisfied___

32

LG SAMSUNG VIDEOCON SONY0

2

4

6

8

10

12

14

16 1516

10

15

8

5

9

7

56

5

33

56

34

3

8

4

Highly SatisfiedModerately SatisfiedNeither satisfied nor dissatisfiedModerately DissatisfiedHighaly Dissatisfied

No. of customer – 140

According to survey finding the maximum consumers are satisfied with LG and Samsung.

7. If the price of your most preferred brand increases what would you do?

Shift to another brand or still buy the same brand.

33

No. of customer - 140

According to survey finding when price are increase the consumer are shift to other brand.

8. If you choose to shift then which Brand would you prefer?

34

LG SAMSUNG VIDEOCON SONY0%

10%

20%

30%

40%

50%

60%

70%

80% 74%69%

78%

64%

26%31%

22%

36% YESNO

Sony___, Samsung___, LG___, Videocon___

SONY SAMSUNG LG Videocon0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

25%

29%

32%

14%

No. of customer - 140

According to survey finding consumer are shift to LG and Samsung brand.

9. Please rate the following brands on the scale of 1-5 for the attributes mentioned below i.e. write 5 if you feel the attribute is good enough to fully satisfy you and mark 1 if you feel the attribute could not satisfy you.

35

ATTRIBUTES/BENEFITS, BRANDS

LG Samsung Videocon Sony

PriceStylish productBrand nameEasy to useDiscountOthers

LG SAMSUNG VIDEOCON SONY0%

5%

10%

15%

20%

25%

30%

35%

28%

25%

32%

16%

20%18%

9%

26%

14%

17%

22%24%

18%20%

17%16%

15%

12%

16%

12%

5%

8%

4%6%

PRICESTYLISH PRODUCTBRANDEASY TO USEDISOCUNTOTHERS

No. of customer – 140

According to survey finding the consumer mostly satisfied with price of product of any brand and

another is brand name.

Dealer Bashed Questionnaire

36

A. Are you satisfied with Videocon advertisement?

SATISFIED NOT SATISFIED NONE0%

10%

20%

30%

40%

50%

60%

56%

28%

16%

DEALER RESPONSE

No. of dealer - 25

According to survey I am find the dealer are satisfied with Videocon advertising.

56% dealers are satisfied with Videocon advertising.

B. How long you want our advertisement to run?

37

0-6 month 6 month-1 year 1 year - 1.5 year 1.5 year - 2year0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%48%

32%

16%

4%

No. of dealer - 25

According to survey I find the dealer response to watch the advertisement on less than one

year, after that change advertisement.

C. Which type of advertisement would you prefer?

38

TV Adds Radio Adds Paper Adds Out-door Adds0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

46%

12%

22% 20%

No. of dealer - 25

According to survey I find the dealer say to see the advertisement on television and others is

newspaper advertisement.

According to this graph 46% dealer want to watch the advertising on television, 22% dealer

want to see the advertisement in newspaper, 20% dealer says to advertisement see on outdoor

(like on road adv., boarding - hooding, auto advt. etc.) and 12% dealer said the gives the ads

on radio to promote in ruler area, because there are many opportunity to grow the market.

D. Are you satisfied with Videocon product price range?

39

Yes No0%

10%

20%

30%

40%

50%

60%

70%

80%

79%

21%

No. of dealer – 25

According to survey I find the mostly dealer are satisfied with Videocon product price

range.

E. If no, how much you prefer to like the product price range of Videocon?

40

5000-250007000-60000

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

TV

Washin machine

Refrigerator

Air-condition

84%

16%

92%

8%

88%

12%

78%

22% TVWashin machineRefrigeratorAir-condition

No. of dealer – 25

According to survey the 22% dealers want to decrease the price range of Videocon product.

The range comes near Rs. 5000 to Rs. 25000.

F. Which process for selling our services or products would you prefer?

41

a. Direct personal sale

b. Direct online sale

c. Indirect through channels

d. Others

personal sale online sale indirect through channel

Others 0%

5%

10%

15%

20%

25%

30%

35%

40%

45%42%

12%

35%

11%

No. of dealer - 25

According to survey I find the dealer want to selling process use the personal selling method.

On these basis the Videocon are providing the ISD on the retail store.

And some dealers are wanted to use the selling process to use the indirect.

G. Are you satisfied with the after sales service of Videocon?

42

Yes

No

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

14%

86%

No. of dealer - 25

According to survey I find the maximum dealers are not satisfied with Videocon after sales

service.

H. If not, then which of the brand would you like after sale service?

43

LG Samsung Sony0%

5%

10%

15%

20%

25%

30%

35%

40%

38%

34%

28%

No. of dealer – 25

According to survey I find the Sony, Samsung and LG Company are good providing the good

after sales service.

I. Are you satisfied the Videocon policy and his term & condition?

44

Yes No None0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

48%

34%

18%

No. of dealer - 25

According to survey I find the 48% dealer are satisfied with Videocon policy, and 34% are

not satisfied.

J. Where are you like to advertisement of Videocon?

45

Residential area

comerrcial area

industrial area

social area others0%

10%

20%

30%

40%

50%

60%

14%

54%

4%

22%

6%

No. of dealer - 25

According to survey I find the give the advt. in commercial are and others are social place

area.

FINDINGS

46

DEALER SURVEY FINDINGS:-

1. By calculating the display share we found that in most of store LG has 28% 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. The top competitor of Videocon product is LG.

8. The performance of Videocon is in better position but the competitor also hold closer

margin.

9. There is high growth of sale in market due to booming in new technology and better

service.

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.

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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 less market share in every Category.

8. Videocon, LG and Samsung have bottle neck competition in TV and REF.

9. The product is well aware and it is on top of mind of customer.

10. Customers are also now very choosy in buying the product and it is important for the

company to make loyal customer of their brand.

RECOMMENDATIONS

The variables affecting the industry with regard to each of the five forces have been categorized as

favorable or adverse. Favorable 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 favorable forces and protect themselves from the adverse ones, are as follows:

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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

strategies 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 sensitizing the larger

audiences to it.

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.

CONCLUSIONS

Videocon in the year 2012, the company will be great success, as the strategy work which result in

making Videocon Company the India’s leading company. In 2012, company accomplishes the crust

of its strategy as:

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1. The focus for Videocon Group is rural markets and major growth is going to come from

these markets, which are growing at over 18%

2. To focus on the semi urban market an there will be grow the market to 16% and getting

good response on that market.

3. Ethernet connection that gives the largest selections of free and premium movies, TV

shows, and sports out there.

4. To be focus on the middle class family, which monthly family incomes comes on Rs.

10,000 and above.

5. To focus on the premium market customer.

6. To become cheaper product, Videocon should increase the level of technology and

minimizing the pricing gap in respect of market, to avail the Premium quality product.

7. To increase the branding of Videocon, the proper merchandising has applied by Videocon

retail store.

8. To advertising the Videocon with good and strong message.

9. To focus on modern monetary and branding in shop and out shop.

10. To introduce the product in simple and proper communication

11. Videocon will focus on expanding their segments on the women’s customer.

12. To be prepared the other brand component with similar quality and in more economical

rates.

13. Videocon introduction of a new tagline created to target experience change.

14. Videocon identification upon the manufacturing structure.

15. Videocon strive on innovative product to easy to use the consumer.

16. No interest for 24 months if the customer applies for the new Videocon financial

service card at point of purchase.

17. Sponsorship includes 2010 & 2014 World Cups.

18. Videocon products are considered to high quality, slim product, unique and

conventional.

19. To become the No.1 Service Provider in India

LIMITATIONS

Every study has certain limitations. In my study, also there were certain limitations, which I could not

able to solve.

50

1. The research was conducted in entire Jaipur area.

2. My research work period witness the biggest ups and downs in product sale of different

brands, which affected the perception of the customer. This was biggest drawback of my

study.

3. Time factor was also important for me. I had only 60 days to complete my research, for

which a full-fledged report was insufficient for me.

4. The customer filled the questionnaire mostly in careless manner, so it was difficult to

make them hold for time.

5. I had only found the upper-middle class family to fill up the questionnaire, but generally,

an average middle class family was required for the study.

My study is not recognizable in whole INDIA as well as Jaipur and its upcountry is due to the above

limitations and less area coverage.

QUESTIONNAIRES Customer bashed questions

1. Which brand of electronic product would you like to buy?

51

Sony___, Samsung___, LG___, Videocon ___

2. Generally, when would you like to buy the electronic product?

Jan-March, April to June, July to Sept., October- December

3. Which of the following brands has been bought by you since last one year?

Sony___, Samsung___, LG___, Videocon___

4. From where you would like to buy the product?

Exhibition_ __, Authorized Dealer ___, Showroom ___Co-shopper___

5. Please rate the following sources of information according to the level of importance of each

source ( 1-5, 1 is stand for less and 5 is High)

Friend’s ___

Retailer ___

Advertisements ___

Magazines or newspapers ___

Any Other___

6. Are you satisfied with the performance of Videocon product?

Highly Satisfied____, Moderately Satisfied____, Neither satisfied nor dissatisfied___,

Moderately Dissatisfied___, Highly dissatisfied___

7. If the price of your most preferred brand increases what would you do?

Shift to another brand or still buy the same brand.

8. If you choose to shift then which Brand would you prefer?

Sony___, Samsung___, LG___ Others

9. Please rate the following brands on the scale of 1-5 for the attributes mentioned below i.e.

write 5 if you feel the attribute is good enough to fully satisfy you and mark 1 if you feel the

attribute could not satisfy you.

ATRIBUTES/BENEFITS BRANDS

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LG Samsung Videocon Sony

Price

Stylish product

Brand name

Easy to use

Discount

Others

Dealer bashed questions

A. Are you satisfied with Videocon advertisement?

B. How long you want our advertisement to run?

C. Which type of advertisement would you prefer?

D. Are you satisfied with Videocon product price range?

E. If no, how much you prefer to like the product price range of Videocon?

F. Which process for selling our services or products would you prefer?

a. Direct personal sale

b. Direct online sale

c. Indirect through channels

d. Others

G. Are you satisfied with the after sales service of Videocon?

H. If not, then which of brand would you likes after sale service?

I. Are you satisfied the Videocon policy and his term & condition?

J. Where are you like to advertisement of Videocon

BIBLOGRAPHY

Books:-

Marketing management: Philips Kotler

Research methodology: C.R. Kothari

Mkt. mgt. planning & implementation: V.S. Ramaswamy & S. Namakumari

Website:-

www.videoconworld.com

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www.business-standard.com

www.google.com

www.wikipedia.com

www.timesofindia.com

www.financialexpress.com

www.economictimes.com

News paper:-

Economics times

Financial express

Times of India

Business standard

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