VIDEOCON

EXPERIENCE CHANGE!!!

Presented By: Aayush Tandon (211008) Anurag Chopra (211026) Divyanshu Singh (211044) Amol Thakar (211017) Atul Kumar Umar (211035) Hitesh Singla (211053)

Videocons SBUs
Power Business Consumer Electronics & Home Appliances

Telecommunication

Videcon

Mission
To delight and deliver beyond expectation through ingenious strategy, intrepid entrepreneurship, improved technology, and innovative products, insightful marketing and inspired thinking about the future.

SEGMENTATION

PESTLE Analysis
Political FDI in retail market Effect of new labour union laws Economic

Increase in per capita GDP of India Indian retail market is one of the fastest growing market Rural India still economically weak
Need rather than luxury

Social

Technological

Technology changing at rapid rate IPTV coming into market is creating a threat to TV market Anti-dumping duties imposed for import of colour picture tubes imported from Malaysia, Thailand, China & South Korea A control over carbon emission required as per the global standards.

Legal

Environmental

Industry performance

Expected Growth

Market Share of top competitors

2010 2011

Performance review of Videocon for last five years in terms of revenue, profit
16000

14000
12000 10000 8000 6000 4000 2000 0 2007 2008 2009 2010 2011 Profit (consumer electronics & home appliances ) (crores) Revenue (crores)

Profit (T.V.) (crores)

SWOT Analysis
STRENGTH
Largest manufacturing base 3rd largest picture tube manufacturer Tie-up with Matsushita electric company

WEAKNESS
Lesser margins to distributor/dealers CRT technology losing popularity No exclusive stores

SWOT
Bought Electrolux and Thompson Growing semi Urban Market China is tough competitor Companies like MicroMax Brand Loyalty more for LG & others

OPPORTUNITIES

THREATS

Marketing Strategy
POSITIONING OF VIDEOCON
To delight and deliver beyond expectation: the end This segment not only underlines the importance of the ultimate goal customer satisfaction (delight) and ultimate target - the customer, but also of intermediate processes and principals, which have contributed to building a robust, dependable Videocon value chain (deliver).
VFM brand providing customers with highly reliable and affordable products Current Revenue : 60% from rural and 40% from urban India Doing exceptionally good in conventional market,

Not able to compete with Samsung, Sony and LG in high end products.

Marketing Strategy (Reliable to Desirable)

Videocon
Innovative products Strong R&D capabilities Low cost manufacturing capacity Will affect current branding and positioning Difficult to convince dealers and distributors

Novateur
Under the aegis of Videocon
Premium product providing ultimate experience

Would compete with Samsung and Sony

Videocons VFM brand would not be hampered

Marketing Strategy of Novateur

POSITIONING OF NOVATEUR
To provide customers with high quality products which provide a superior viewing experience by imbibing state of the art technology Target : Upper class people of tier-1 cities only Emphasis of superior quality and performance Use of distribution channel, Sales force and Retail Network of Videocon Greater emphasis on marketing and promotion Expected market share of 1.5-2.5% by 2014, with a target of achieving 4% by 2017

Product Strategy of Videocon

Consumer Electronics & Home Appliances
TV Washing Machines Refrigerators Air Conditioners Mobiles Microwave ovens

DDB TV

5 series (in 7 sizes) and the 3 series (in 4 sizes) 4 Ranges: Razor (one size), Orion (4 different sizes), Persistence (6 sizes) and Elena 3D TV (one size) 6 ranges: Envira (one size), Prestige (one size), Cyclone (5 sizes), Pearl (5 sizes), Sapphire (7 sizes) and Magnum(4 sizes) 2 different sizes: 21 inches (19 models) and 14 inches (3 models) include 2 models 2 sizes: 20 inches (2 models) and 14 inches (4 models)

LED TV

LCD TV

Ultra Slim TV

Flat TV

Conventional TV

Product Strategy for Novateur

TV
LED
Series 1 (1 model) Series 2 (4 Models)

DDB
X series (7 models) J series (4 models)

Series 3 (6 models)
Series 4 3D (3 models)

Pricing Strategy
Videocon :
Penetration pricing Lower prices than all major competitors Target both rural and urban customers

Novateur :
Will concentrate on customers who want premium products Will position its products upwards of 40K Induce a sense of desirability amongst customers

Distribution Strategy
Videocon :
DEALER NETWORK
78 division in 25 states 1800 dealers and 96 service centre.

MULTI-BRAND RETAILS
430 DigiWorld outlets 730 NEXT outlets

Novateur:
Will use the existing network in metros and some tier 1 cities.

Available in leading Multi-brand retail chains like Croma, DigiWorld etc It will use the pull strategy.

Promotional Strategy
Advertising
150 crores each for Videocon and Novateur

Sales Promotion
Novateur: 200 outlets + 200 sales rep Scratch and win offers

Videocon : TV, Newspaper, Radio, public hoardings

POP display ( 5 crores) Tie-ups with game shows to give our product as gift (5 cores)

Novateur : TV, Newspaper, Internet, Selected magazines

Sales Force Strategy

Currently 500 Major Dealers, 1500 Sub-Dealers, and 5000 Retail outlets managed by 4500 strong staff.

Target Retail outlets by 2014- 6000.

Current worker efficiency w.r.t number of outlets = 1.11, expected increase in workforce = 400. Accommodation for: promotion = 10, attrition= 40. Additional staff of 50 required for Branding, Promotion and Marketing activities of NOVATEUR.

Profit & Loss Account

Operating Profit should have been around Rs. 2400-2500 Cr but we expect it to be around Rs.2200 Cr. Selling & Admin expenses will increase significantly. We are projecting Sales Turnover to be lower than last year.

Contingency Plan
Observe the performance of Novateur for till 2017 Can start to get out of market without any loss to the image of Videocon through :
Offering high discounts on products Increasing promotional schemes Stop advertising

Concentrate on promoting Videocon as desirable brand Invest in advertisements to change the positioning of Videocon Increase investment in R & D to further enhance the technology

THANK YOU