Escolar Documentos
Profissional Documentos
Cultura Documentos
Every business organization that comes into contact with the customer
develops a perception in the mind of the customer. Today, in this
competitive world every organization needs to know the perception in
the mind of the customers. In order to gain mind share or heart share
of customers along with the market share is the main lookout for the
organizations. Especially in consumer electronics sector, where the
products are more or less same, the only way to leave positive impact
on customer’s mind and to gain competitive advantage is providing
best possible services to the customers.
2. Objective
• To have an overview of videocon.
• To know the reputation of videocon T.V. in the market.
• How the consumer preference towards the brand videocon.
• The main objective how to increase the reputation of
videocon brand in the market.
• To understand its competitors in business.
• How videocon will create a good image in the market.
• To understand the 4 Ps used by the videocon in business
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
1
CHAPTER-1
STUDY
OF
THE INDUSTRY
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
2
INDUSTRY SCENARIO
Before the liberalization of the Indian economy, only a few companies like
Kelvinator, Godrej, Allwyn, and Voltas were the major players in the consumer
durables market, accounting for no less than 90% of the market. Then, after the
liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo, Aiwa
came into the picture. Today, these players control the major share of the consumer
durables market.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
3
ABOUT CONSUMER ELECTRONICS INDUSTRY
1.History of consuemr Electronics in India
The Electronics Industry in India took off around 1965 with an
orientation towards space and defense technologies. This was rigidly
controlled and initiated by the government. This was followed by
developments in consumer electronics mainly with transistor radios,
Black & White TV, Calculators and other audio products. Colour
Televisions soon followed. In 1982-a significant year in the history of
television in India – the government allowed thousand of Colour TV
sets to be imported into the country to coincide with the broadcast of
Asian Games in New Delhi. 1985 saw the advent of Computers and
Telephone Exchanges, which were succeeded by Digital Exchanges in
1988. The period between 1984 and 1990 was the golden period for
electronics during while the industry witnessed continuous and rapid
growth.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
4
The breakup of production in various segments the industry is shown
be low:
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
5
2. CURRENT SCENARIO
On the brick of rapid economic growth, India has witnessed the dynamic change in
country's consumer electronics industry. In last few years the industry has been
witnessing significant changes in retail boom, growing disposable income and
availability of easy finance schemes. One electronic gadget that has brought new
revolution in Indian Electronic Industry is Television Set. Today, India is fast
emerging as the key driver in the global television market both as a manufacturer and
consumer. In recent years, the market for televisions in India has changed rapidly
from the conventional CRT technology to Flat Panel Display Televisions (FPTV).
Currently, the split between CRT and FPTV is around 97% and 3% respectively. In
addition to this, one of the most striking changes sweeping across the colour
television market in Indian market is the exponential growth of the flat panel
television (FPTV) market, in common parlance called the liquid crystal display
(LCD) and plasma televisions. Moreover, as per recent research data available, the
global market for FPTV is expected to grow from 51 million units in 2006 to 127
million by 2009.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
6
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 labor and the emergence of SEZs, which are tax-free zones are some of
the key factors that have resulted in growth of these manufacturing units. In fact,
encouraged by tax-breaks, new manufacturing units are coming up in less-developed
regions now.
Today, India is one of the few emerging countries to have an excellent component
supply base in terms of manufacturing facilities for glass and color picture tubes, so it
helps it a good choice for all those companies who are looking to take benefit of this
emerging market.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
7
3. INDUSTRY ANALYSIS- 5 FORCES MODEL
Michael Porter’s Five Forces Model provides a robust and time-tested framework for
analysing any industry, reflected in the strength of the five forces (industry
competitors, potential entrants, threat of substitutes, power of buyers and power of
suppliers). The collective strength of the five forces determines the ultimate profit
potential in an industry,
Where profit is measured in terms of long-term returns on capital invested. The
elements of each of the above forces and the extent and /or effect of each element in
the context of the television industry have been analysed and enumerated below.
The Porter’s Five Forces tool is a simple but powerful tool for understanding where
power lies in a business situation. This is useful, because it helps you understand both
the strength of your current competitive position, and the strength of a position you’re
looking to move into. With a clear understanding of where power lies, you can take
fair advantage of a situation of strength, improve a situation of weakness, and avoid
taking wrong steps. This makes it an important part of your planning toolkit.
Conventionally, the tool is used to identify whether new products, services or
businesses have the potential to be profitable. However it can be very illuminating
when used to understand the balance of power in other situations.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
8
1. COMPETATIVE RIVALRY AMONG INDUSTRY (VERY HIGH)
2. BARGAINING POWER OF BUYER (VERY HIGH)
3. BARGAINING POWER OF SUPPLIER (LOW)
4. BARRIER TO ENTRY (LOW)
5. THREATS OF SUBSTITUTES (LOW)
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
9
3.1 Degree of Rivalry
Degree of rivalry denotes the intensity of competition within the industry. Videocon,
LG, samsung, Sony, Onida, are the big competitors in television industry. Although
Videocon, another major player has managed to hold its own in the midst of the
onslaught from the Korean majors, though profits have suffered. Other large Indian
companies in the top of the list are Mirc Electronics. While Mirc Electronics is
managing to hold its share by adopting value for money strategy, BPL is facing tough
time, experiencing drastic decline in market share. Sony, Philips, Akai, Sansui, Aiwa,
Toshiba and now Hyundai are the other foreign brands in the market. The industry is
based on numbers game and companies will have to maintain a fine balance between
catering to lifestyle requirements and meeting the needs of average consumer.
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.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
10
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.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
11
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.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
12
LG Electronics sells in 1800 towns and cities with a population of 1,00,000 and
above.
Samsung also has a widespread service network, which includes 123 exclusive
service centres and 200 distributors in any town with more than 1 lakh population.
All BPL dealers are linked via VSAT nodes, ensuring online availability of
information on inventory status and sales movement.
Distribution hence is difficult and costly as established firms dominate distribution.
Large incentives are required to gain entry into the distribution channels and further
gain recommendation to retailers from the dealers.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
13
Supply chain mgmt. and inventory management thus becoming crucial toDetermining
profitability. With regard to sourcing funds, MNCs are better placed Than their
Indian counterparts as they manage to get funds from their parent Companies at low
rates of interest. Huge capital requirement thus can act as barrierto entry.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
14
Been the most aggressive amongst industry leaders as far as pricing is
Concerned and hence their realisation shave been lower than industry average.
Industry leaders like LG focus on low- medium priced CTV, while Samsung has
Moved gradually towards higher priced CTVs. The domestic high-end
CTV prices will follow the global price trend of declining prices. However, the
Prices of domestic products would be higher than those of global products due
To negligible demand in the domestic market and hence most likely to be met
Through imports. market is highly price sensitive as the
Demand has increased with fall in prices.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
15
At the same time bulk orders in raw material procurement fetch more discounts,
which gives the larger players an advantage over their smaller counterparts. The CPT,
the most critical component in a CTV has no alternate use and therefore, the CPT
industry is solely dependent on CTV players, mainly domestic and partly exports.
Hence larger players like LG, Samsung and Mirc etc. are able to negotiate better
deals unlike other players.
3.6. CONCLUSION
The variables affecting the industry with regard to each of the five forces have been
Categorized as favourable or adverse. Favourable variables have the potential to
improve profitability, while adverse variables reduce profitability of the industry.
Some strategic initiatives, which could be adopted to leverage the favourable forces
And protect themselves from the adverse ones, are as follows:
• R&D and Marketing will have to work closely together. R&D will have to play a
role in cost innovation, which can cut component cost and raise performance. The
number of defectives has to be reduced at negligible levels. The quest should be to do
even better. Each assembly line can be made to compete with the other.
• Vital to the spread out is the re-haul of distribution network. Home appliances have
necessitated separate dealers, many of them specialists. For sharper focus on all
categories individually, the market has to be opened wider.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
16
LG and Samsung are likely to retain top positions.
• Buyers are easily swayed by costs, which are also verified by the presence of large
number of product offerings. Focus would be on providing value for money to the
consumer, with more brands in the economy segment. The challenge before
marketers is to span out, and address a wider set of needs. They will have to identify
segments not addressed by them so far and also introduce low price-point products
aimed at rural markets.
• Besides catering to the cost conscious segment, marketers need to segment the
market on the basis of psychographics, which will help in inducing brand loyalty
through lifestyle and experiential marketing.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
17
CHAPTER-2
STUDY
OF
THE COMPANY
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
18
COMPANY PROFILE
Brief Profile
The Videocon group emerges as a USD 2.5 Billion global conglomerate continuing to
set trends in every sphere of its activities from a conference room sized assembly line
in 1979.
1. Consumer durable
2. Thomson CPT
3. CRT glass
4. Oil and gas
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
19
Colour Picture Tube Glass
Videocon is one of the largest CPT Glass manufacturers in the world with a high
level of experience and technical expertise operating through Poland and India.
Videocon will leverage on this synergy after the Thomson acquisition to internally
source glass for its CPT manufacturing increasing efficiencies and lowering costs.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
20
BRAND-BASKET
Sansui Electric Co. Ltd Audio Products ODM for Indian Market
And Colour TV
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
21
HISTORY
• Color
&
BW
TV
• Washing
Machine
• Home
Entertainment
Systems
• Electric
Motors
• AC
• Refrigerators
• Coolers
• Glass Shells for CRT
• Kitchen
Appliances
• Crude
oil
• Compressor
• Compressor
Motors
• Philips Color TV Plant Take Over
• ElectroLux
India
Three‐Plant
Takeover
• Thomson
CPT
Acquisition
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
22
Ownership pattern:
Shareholding Pattern as on 31-03-2009
Number of
As a
Number of Total shares held in
Sr. Category of % of As a % of
shareholder number of de
No shareholder (A+ (A+B+C)
s shares materialized
B)
form
(A) Shareholding of Promoter and Promoter Group
(1) Indian
(a) Individuals/Hindu 13 1619838 1292950 0.87 0.73
Undivided Family
(b) Bodies Corporate 44 153823583 152711452 82.6 69.57
Sub-Total 0 0 0 0 0
(A)(2)
Total Shareholding 57 15544342 154004402 83.4 70.3
of Promoter and 1 7
Promoter Group
(A)=
(A)(1)+(A)(2)
(B) Public shareholding
(1) Institutions
(a) Mutual Funds / UTI 21 36571 35228 0.02 0.02
(b) Financial Institutions/ 36 304403 291166 0.16 0.14
Banks
(c) Insurance Companies 5 5600352 5599752 3.01 2.53
(d) Foreign Institutional 95 13467563 12706367 7.23 6.09
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
23
Investors
Sub-Total 157 19408889 18632513 10.4 8.78
(B)(1) 2
(2) Non-institutions
(b) Individuals
(i) Individual 342862 4685290 2998613 2.52 2.12
Shareholders holding
nominal share capital
up to Rs. 1 lakh
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
24
Vision & Mission
Videocon’s mission expression has been crafted to envelope both extant and
emerging realities:
“To delight and deliver beyond expectation through ingenious strategy, intrepid
entrepreneurship, improved technology, innovative products, insightful marketing
and inspired thinking about the future.”
A breakdown of the statement above reveals a ‘means and end’ approach, where the
end is articulated at the beginning with the means linked to it.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
25
“…Intrepid entrepreneurship…”: the means
An enterprise with the odds stacked against it makes great business sense. This is
because higher the obstacles, lower the number of players likely to be active in that
field - thus, fetching extraordinary returns. The only requirement is a bold and
confident attitude willing to brave the odds. Videocon’s foray into oil and gas is a
bold and intrepid endeavour that arises from immense faith on the surefooted
competence of the company’s in-house managerial talent.
The future is unpredictable, but not doing anything about it is fraught with
grave risk. Videocon extrapolates future trends on the basis of current changes in
technology and preferences as well as sheer gut feel.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
26
Corporate Governance
Company's Philosophy on Code of Governance:
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
27
Efforts to reduce power consumption of all its final products.
2) Benefits derived as a result of the above R& D.
The company has derived the following benefits as a result of the Research and
Development:
In the coming days company is aiming to achieve development in the following areas
through Research & Development:
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
28
Future Plans
To strengthen and maintain & its leadership status, the Videocon group has clearly
charted out its course for the future. Aggressive development is in full swing at the R
& D Centres to bring out state-of-the-art technologies including True Flat, Slim,
Extra Slim, Plasma & LCDs, at the earliest.
Cost rationalization processes - are in various stages - including rationalizing
factories in Europe, increasing automation and improvement of efficiency in China,
accessing flass shells from India for international CPT facilities and a lot more - are
in various stages of implementation.
Internationally all existing client relationships are being strengthened. The cost
competitiveness and increase in capacity in Mexico and Polland has opened up big
opportunities in the OEM business.
Last but not the least, in the domestic market consolidation with multiple brands
paves the way for an unassailable lead in the market.
In the Oil & Gas business, having all the basic operator capabilities of a prospecting
entity, the group is looking to add more explorations and production depth as also oil
bearing assets. The group will also get into gas distribution in India siginificantly.
Board Of Directors
Mr. Venugopal N Dhoot
Mr. Pradeepkumar N Dhoot
Mr. K C Srivastava
Mr. Kuldeep Kumar Drabu
Mr. Satyapal Talwar
Mr. S Padmanabhan
Maj. Gen. S C N Jatar
Mr. Arun L Bongirwar
Mr. Didier Trutt (Nominee - Thomson S.A)
Mr. Johan G Fant (Nominee - AB Electrolux (Publ) )
Mr. B Ravindranath (Nominee - IDBI Limited)
Mr. Ajay Saraf (Nominee - ICICI Bank Limited)
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
29
ORGANIZATION STRUCTURE CHART:
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
30
FUNCTIONAL DEPARTMENTS OF THE ORGANIZATION:
STORE DEPARTMENT:
Functions:
3. Maintenance of Stores.
Suppliers.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
31
FINANCE DEPARTMENT
Functions:
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
32
MARKETING
DEPARTMENT
Functions:
management.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
33
PRODUCTION DEPARTMENT
Functions:
Purchasing
Stores
Works
Production cycle:
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
34
AUDIT REPORT
(i) (a) The Company has maintained proper records showing full
Particulars including quantitative details and situation of fixed
Assets.
(b) As per the information and explanations given to us, physical
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
35
Verification of fixed assets, other than those under joint venture, has
Been carried out at reasonable intervals in terms of the phased
Programme of verification adopted by the Company and no material
Discrepancies were noticed on such verification. In our opinion, the
Frequency of verification is reasonable, having regard to the size of
The Company and nature of its business.
(ii) (a) As per the information and explanations given to us, the
Inventories (excluding stock of crude oil lying at extraction site with
the Operator) have been physically verified during the year by the
Management. In our opinion, having regard to the nature and location of
Stocks, the frequency of the physical verification is reasonable.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
36
And services. During the course of our audit, we have not observed any
Continuing failure to correct the major weakness in the internal
Controls systems.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
37
(x) There are no accumulated losses as at 31st march 2009. The
Company has not incurred any cash losses during the year covered by our
Audit and the immediately preceding financial year.
(xi) Based on our audit procedures and the information and explanations
Given by the management, we are of the opinion that the Company has not
Defaulted in repayment of dues to financial institutions, banks or to
Debenture holders during the year.
(xii) The Company has not granted any loans and/or advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xvi) The term loans raised during the year were applied, on an overall basis,
For the purposes for which the loans were obtained.
(xvii) The balance sheet of the Company, we report that the Company has
Not used funds raised on short-term basis for long-term investments.
(xix) The Company has not issued any secured debentures during the
Year. The Company has created security in respect of debentures issued
In earlier years.
(xx) During the year the Company has not raised any money by way of
Public issue.
(xxi) According to the information and explanations given to us, no
Fraud on or by the Company has been noticed or reported during the
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
38
CHAPTER-3
SWOT
ANALYSIS
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
39
SWOT Analysis
Strengths
1. Videocon has largest distributed capacity manufacturing base across India with 17
facilities and plant in china, Poland, itally, Mexico.
2. Manufacturing capacity is 1, 40000 units.
3. Videocon has a network of 400 plus service and 85 mobile service vans to give
better service to their customers.
4. Tie up with the Matsushita electric company of Japan add to the goodwill of
Videocon
5. Customers are aware about Videocon’s products.
6. Company has good brand name.
7. Strong backward integration
8. Videocon has largest distribution manufacturing based across in India.
9. Large brand basket
10. Multi brand strategy
11. 3rd largest picture tube manufacture in India
12. Cheap price.
13. Globally acceptance.
Weaknesses
1. Less investment on advertisement of Videocon CTV
2. Fewer margins to the distributor/dealer.
3. Weak promotional strategy of CTV.
4. No proper approach of target customer.
5.wide brand basket, which might lead to conflictof interest unless
Effectively managed
6.CRT technology is losing popularity.
7.less focus on unconventional channel.
8. Not providing good service.
9.No exclusive show rooms
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
40
Opportunities
1. Videocon takes over the Electrolux.
2. Videocon buy Thomson color picture tube manufacturing plant.
3. Videocon international is going global.
4. Videocon exploring whole new segment
5. During the climate of Jaipur becomes hotter day by day and coolers do
Not fully satisfy the customers requirement. This provides a great
Opportunity for ac manufacturers.
6. Growing semi urban market.
7. Industry is in increasing phase.
8. Price has come down; now more and more people are going for it.
9. Due to financial facilities even the medium segment is going for it.
10. Purchasing power of people is increasing day by day.
Moving into new attractive market segments.
11. Focused on unconventional channels.
12. Mergers joint venture of strategic alliances.
Threats
1. Entrance of global competitor like china.
2. Brand loyalty is more of LG &other company.
3. Market condition like slumps in market.
4. A new competitor in your home market.
5. Competitor has a new innovative substitute product or service.
6. Increased trade barrier.
7. Brand reputation is not good.
8.Competition in global CPT market especially from integrated players such as LG-
Phillips, Samsung, and Matsushita is intense.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
41
CHAPTER-4
LEARNING
EXPERIENCE
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
42
LEARNING EXPERIENCE
3. I have also learnt how corporate world functions and the importance of
discipline in your work life.
4. My manager supperted me in gaining sufficient knowledge about
the companyand industrythis help me complete the project
successfully.
5. I have learned about the videocon products esp. television which
are sales in India
6. I have learned about sales procedure of company.
7. I have learned about the competitors of videoco
8.
I became much more confidant and the experience has helped
me to brush my communication skills.
9. Apart from this entire thing it gives me real picture about supply
chain. I visited each department & it is good learn experience to me
when employees share their experience for the organization to
achieve the goal.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
43
CHAPTER-5
RESEARCH
METHODOLOGY
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
44
5.Research problem
Problem Statement
• The problem of this project is to know that to what level
customers are enjoying and aware of videocon TV offered by
the company and what further improvement can be done in
future in this area so as to get brand awareness. The main
objective how to increase the reputation of videocon brand in
the market
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
45
Videocon brand awareness helps buyers / consumers
in following ways
• Brand awareness helps shoppers in moving quickly through
super market or retail store and helps in making quick
decisions.
• For customer the videocon brand is Easy to identify
and recognize
• It should be distinctive and create a good imagein
customer mind.
• Should be capable of being registered and protected
legally.
• A deep brand must have Brand Equity.
Research methodology
Research methodology is considered as the nerve of the project. Without
a proper well-organized research plan, it is impossible to complete the
project and reach to any conclusion. The project was based on the survey
plan. The main objective of survey was to collect appropriate data, which
work as a base for drawing conclusion and getting result.
Therefore, research methodology is the way to systematically solve the
research problem. Research methodology not only talks of the methods
but also logic behind the methods used in the context of a research study
and it explains why a particular method has been used in the preference
of the other.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
46
5.2. Research design:
Research design is important primarily because of the increased
complexity in the market as well as marketing approaches available to
the researchers. In fact, it is the key to the evolution of successful
marketing strategies and programmers. It is an important tool to study
buyer’s behavior, consumption pattern, brand loyalty, and focus market
changes. A research design specifies the methods and procedures for
conducting a particular study. According to Kerlinger, “Research Design
is a plan, conceptual structure, and strategy of investigation conceived as
to obtain answers to research questions and to control variance.
The General study was converged as a specific study for videocon. The
study was initiated to find out the consumer profile, brand perception and
cross preference among videocon and Competitor brands.
Our approach to the research design tasks went through the following
tasks.
Information needed
?
Measurement and scaling Procedures
?
Appropriate Data collection
?
Sampling Process and sample size
?
Data Analysis plan
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
47
These issues are addressed as the following
5.3.Type
The data collection was done through
1. Secondary Data Analysis
2. Survey
Secondary data is obtained by contacting the retailer and dealers.
5.4.Scaling Techniques
We asked the customers to rank the various attributes on a scale of very
important, Important and not very important. To find-out the brand
perception of various brands, paired comparison between them is used.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
48
5.5.Questionnaire Design
Questionnaire design was the critical issue as the questionnaire
reflects the survey purpose .The questionnaire was meticulously prepared
by identifying the various variables. The same scale of yes/no and very
important, important and not so important was used through out so as to
make the respondent comfortable.
Firstly a questionnaire was prepared and few people were surveyed. After
this survey we realized the flaws in the questionnaire and then a modified
questionnaire was prepared and people were surveyed on this modified
questionnaire.
5.6 Sampling Techniques
In the survey conducted, the sample was random in nature comprising of
people from different age groups and income stratas.
4.7.Data Collection
Data collection is the important step after the sample is selected on which
the survey is being conducted. With data that is available in the hard
form we converted that to electronic form, to analyze the data using the
MS Excel softwares. In the data collection customers were approached
during the working hours at dealers point.
The first part of the survey was a disguised survey was there was no
mention of videocon as Organization. It was conducted as a part of
institute project. Purpose of the survey was explained and was asked
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
49
whether they are interested to take part in the survey Later Questionnaire
was handed over to them, and necessary instructions were given to
complete the questionnaire .The questionnaires were returned back after
filing up on their convince, While receiving the filled in questionnaire
care was taken to check whether there are any unfilled items in the
questionnaire.
This is very useful diagram to represent data, which are divided into a
number of categories. This diagram consists of a circle of divided into a
number of sectors, which are proportional to the values they represent.
The total value is represented by the full create. The diagram bar chart
can make comparison among the various components or between a part
and a whole of data
• Bar chart:
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
50
5.9 Limitations of Survey
Response Errors - These may arise when the respondents give
inaccurate or incomplete answers. For e.g. in our survey a respondent
may not mention that he had test driven a car before purchasing it A
major problem faced in the survey involved the comparative ratings of
various attributes for all the brands of cars. Many of the respondents were
not very willing to rank so many factors as they perceived it to be time
consuming.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
51
CHAPTER-6
FINDINGS
AND
ANALYSIS
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
52
Demographic profile
Gender profile
Male 28%
Female 72%
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
53
FAMILY-INCOME
• Income group determines the sector in which a company wants to foray and be
a market leader; also knowing the income level of the customer will help the
company to modify the products according the buying capability of the
customer, which depends upon the Income level.
• Here we have divided the customers according to Monthly Income and found
that the most of the consumer income is below Rs10000,so they prefer only
less costly television.
• There is also good amount of people of high income (Rs 350000+)
• Here I can infer that there is all income level people available in this segment so
company need a good product range.
OCCUPATION DISTRIBUTION
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
54
Inference:
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
55
Awareness about videocon, SAMSUNG & LG by Customers
(Given in percentage form)
From the above pie – charts, it is clear that most of the customers
(62%) of Videocon came to know about Videocon through TV
advertisement as compare to customers of Samsung and LG. As far as
print media ad is concerned, only few customers came to know about
Videocon through print media ad as compare to customers of Samsung
& LG. But no customers of Videocon came to know about Videocon
through hoardings and billboards, but few customers came to know
about Samsung & LG through hoardings and billboards.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
56
Why videocon, SAMSUNG or LG?
(Given in percentage
form)
Inference
From the above figures, it indicates that people give more preference
to price as compare to other attributes (Like Brand & Quality) while
buying the Videocon products. we observe here that service is not
good at videocon .
Hence, we can infer that LG & Samsung are strong brand and
having more quality than Videocon (as given in Table and Pie-chart).
Also, LG & Samsung products are more expensive than Videocon.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
57
From where you prefer buying consumer durables
Co.shoppee
Showroom
Exhibitions
On-line
Inference:
1. A majority of customers prefer to buy from co.shoppee. Very less
proposition of customers buys from Online and Exhibitions.
3. People are less interested to buy from the exhibition they only visit
the exhibition for price quotation of the product and the
comparison of the product.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
58
You prefer to buy from the same as you have mentioned in above que. Because of
following reasons
Attractive Price
Service
Demonstrations
Offers
Convenience
Inference
1. Customers buy from showrooms because of the service and convenience.
These are two main factors.
2. Customers are preferred to buy from the showroom because of they think that
these convenient store may provide good after sell service.
3. Customer also thinks that there is more chance to bargain and they can get
more discounts in these showrooms.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
59
Do you prefer any financial scheme to purchase consumer durable?
Yes
No
Inference
1. Majority of the consumer donot want to go for financial scheme.
2. 16% consumer is not a small amount, there is only t.v.few company which
provide financial scheme
3. If t.v. Company easily provide this scheme to consumer so they can attract
more customer.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
60
Would you wait for festive season for available discounts for purchase a
Television?
Yes
No
Inference
By this we can infer some customer prefer to buy t.v. on some festival.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
61
Up to how much money are you willing to spend on a t.v? at this time:
a) Less than 6000
b) 6000-13000
c) 13000-20000
d) 20000-30000
e) more than 30000
Inference:
By this diagram I can infer than most of customer are see price, if company provide
some good product with more features and style and design it will help in increse
market share.
Some customers are want to spend a big amount of money on t.v. these customer
don’t care money because of high income so company also need to work on R&D, so
company can provide a different product.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
62
How do you feel after using the videocon t.v?
a) Excellent
b) Good
c) Fair
d) Poor
Inference
There is 19% customer who not satisfies with product and feels poor about the t.v.
Company has to find out all the reason and should work on it.
If company don’t attarct old customer this will become a big threat for company.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
63
CHAPTER-7
FINDING
AND
RECOMMENDATIONS
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
64
Dealer survey Findings
1. By calculating the display share we found that in most of store VIDEOCON
has 24% display share almost all categories.
2. By the actual monthly sale of particular store we came to know the capacity of
the store and how much product can they sale.
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.
10. Dealer are not satisfied with the incentive provided by the company
13. There is high growth of sale in market due to booming in new technology and
better service.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
65
14. Word of mouth plays a vital role in awareness among customer. This is one
factor, which can play a good role in promotion of products as well as
demonstration given by the shopkeeper also plays a vital role for customer.
15. Marketing growing so that is good sign for company in coming year.
16. Consumers are mostly gets attracted by the price discount offered by company
and product warranty
1. VIDEOCON should improve it’s after sale service because its hits badly
VIDEOCONs market share in Jaipur region.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
66
10. The product is well aware and it is on top of mind of customer. So company
should always improve services and update their technology.
1. Secondary supports play an important role in the customers mind and create
awareness among the customers. The secondary support includes
Demonstration, Exhibition & Even Sponsors.
2. From the survey it was found out that the majority of customers don’t buy
consumer durables from exhibitions. They just visit the exhibitions to see the
co. latest model.
3. They want to buy from the showrooms or from co. showrooms. For them
service is important. Beside convenience and other factors service is key
factor.
4. Also majority of customers do not want any financing scheme for purchasing
the durables.
5. There was heavy rush on weekends so large numbers of ISD’s were appointed
that day. Also the live demo calls helps in selling. Exchange offers also
generate sale.
6. Customers are also now very choosy in buying the product and it is important
for the company to make loyal customer of their brand.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
67
8. The product is well aware and it is on top of mind of customer.
9. Customers are also now very choosy in buying the product and it is important
for the company to make loyal customer of their brand.
11. The quality of videocon CTV is acceptable to the market. Consumer and
retailer both are satisfied with the quality of videocon CTV.
12. Consumers are mostly gets attracted by the price discount offered by
company and product warranty.
13. The categories of the people who are using the CTV are mostly economic
income people.
• Also it is helps in advertising for the new products. Like in this exhibition
new LCD was advertised. Company should always focus on service.
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
68
• Display share should be increased where there is less than 50% as
VIDEOCON also believes that “JO DIKHTA HAI WO BIKTA HAI”.
• Company should try to improve service. No doubt the company products have
technically edge over competitors but in long run it may hamper the
company’s profit.
• Company should concentrate more on its major drivers LCD, IT, and GSM.
Branding and promotions should be done effectively as it creates a long
lasting image in the mind of customers.
• Company should also cater to the needs of sub dealers as some of the sub
dealers have potential of high sales.
CONCLUSION
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
69
ANNEXURE
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
70
DEALERS QUETIONARIES
Dear Sir/Madam,
I, student of RIMS (ramaiah institute of management studies) Bangalore am
conducting a survey for the television industry. We request your kind cooperation
2. Address………………………………………………………………
…………………………………………………………………………
……………………………………….
1 2 3 4 5
1 2 3 4 5
a) Less Price [ ]
f) Durability [ ]
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
71
7.Why the rank 2) Product is sold high?
a) Less Price [ ]
f) Durability [ ]
a) Less Price [ ]
f) Durability [ ]
11.Any Suggestions:………………………………………………
……………………………………………………………………………
……………………………………………………………………………
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
72
CONSUMER SURVEY QUESTIONNAIRE
Dear Sir/Madam,
I am student of RIMS (ramaiah Institute of Management studies) Bangalore and as
part of our curriculum I am conducting a market research. I would like your
cooperation for the same, with an assurance that all the information, which you’ll
give, will remain confidential.
1. Name………………………………………………………………………….
2. a) Age ( In years ) : ……………………………………............................
b) Gender (please tick) : Male / Female
3. Educational Qualification……………………………………………………..
4. Address. ………………………………………………………………………
……………………………………………………………………………......…..
5. What is your occupation?
a) Business b) Govt. Service
c) Pvt. Service d) student e) others
6. What is your monthly income?
a) Below Rs 10000 b) Rs 10000-15,000
b) Rs 15,000-25,000 d) Rs 25,000 -35000
e) Rs 35000+
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
73
2. Why you prefer this company product?
……………………………………………………………………………
3. What were the factors that persuaded you to come to your chosen brand?
a) Company advertisements:
b) Talk to friends and colleagues
c) Dealer’efforts
d) Any other; please specify ………………
4.Do you prefer any financing scheme to purchase consumer durables?
a) Yes b) NO
5. While purchasing consumer durable which parameter influences you?
(Please rate the following sources of information)
Price. ………………………
Brand Image ………………………
Product feature ………………………
Service. ………………………
Durability ………………………
Design and style .................................
7.You prefer to buy from the same as you have mentioned in Q.6 because of
following reasons?
a) Attractive Price b) Service c) Demonstrations d) Offers
e) Convenience
8. Up to how much money are you willing to spend on a t.v? At this time:
a) Less than7000 b) 7000-13000 c) 13000-25000
d) 25000-35000 e) more than 25000
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
74
9. Would you wait for festive season to avail discounts?
a) Yes
b) No
10. Which TV Channels do you watch on a regular basis?
…………………………………………………………………………………………
…………………………………………………………………………………………
11. Which Newspaper/Magazines do you read?
…………………………………………………………………………………………
………………………………………………………………………………………….
12. How do you feel after using the videocon t.v?
a) Excellent b) good c) fair d) poor
RAMAIAH
INSTITUTE
OF
MANAGEMENT
STUDIES
75
REFERENCE:
Books
• Http: www.videconworld.com
• http: www.google.com
• http: www.wikipedia.org
• www.in.lge.com
Magazines
• Business today
• Business world
Newspapers
• Economic Times
• Times of India
I AM ASHOK KUMAR A MBA STUDENT PLEASE WRITE ME
CORRECT FEEDBACK ABOUT MY PROJECT.
ID ashokjky@gmail.com
ask_lucky1987@yahoo.com
RAMAIAH INSTITUTE OF MANAGEMENT STUDIES 76