INTRODUCTION TO VIDEOCON

Videocon is an industrial conglomerate with interests all over the world and based in
India. The group has 17 manufacturing sites in India and plants in China, Poland, Italy
and Mexico. It is also the third largest picture tube manufacturer in the world.

The Videocon group has an annual turnover of US$ 4.1 billion, making it one of the
largest consumer electronic and home appliance companies in India. Since 1998, it
has expanded its operations globally, especially in the Middle East.

Today the group operates through five key sectors:

Consumer electronics

In India the group sells consumer products like Colour Televisions, Washing
Machines, Air Conditioners, Refrigerators, Microwave ovens and many other home
appliances, selling them through a Multi-Brand strategy with the largest sales and
service network in India. Videocon Group brands include Kenstar, Next etc.

Mobile Phones

In November 2009 Videocon launched its new line of mobile phones

DTH

In 2009, Videocon launched its DTH product, called 'd2h'. As a pioneering offer in
the Indian DTH market, Videocon offered LCD TVs with built-
in DTH satellite receiver with sizes 19" and 32".This concept in the DTH service is
relatively new in the presence of other players like ZEE TV’s Dish TV, Tata Sky,
Airtel Digital TV and Reliance's BIG TV providing only the set top box.

Telecommunication

Videocon has subsidiary named Datacom Solutions Pvt Ltd which has license for
Mobile Service operations across India. It is commercial launch on 7th march 2010
in Mumbai.
 COMPANY BACKGROUND

 Founded: 1987

 Founders: Nandlal Madhavlal Dhoot

 Headquarters: Aurangabad (Maharashtra)

 Area served:
• Home Appliance
• Components
• Office Automation
• Internet
• Petroleum
• Power
• Consumer Electronics

 Industry: Consumer Durables, Oil and Gas etc.

 Share Type: Ordinary

 Revenue: US$4.1 billion (2008)

 Net Income: US$276 million (2008)

 Web site: www.videoconworld.com

 VIDEOCON PRODUCTS

VIDEOCON LCD TV

Touch the true essence of multimedia entertainment with Videocon LCD TV

& experience tv as you've never seen it before.

VIDEOCON Refrigerators

Experience the new revolution in freshness with Eco Fresh refrigerators.

VIDEOCON Air Conditioners

Intelligent technology, Intelligent design, Intelligent range. VIDEOCON Air

Conditioners.

VIDEOCON Washing Machine

The power of Quanta Wash with the edge of U V Ray technology.

 STRATEGIC BUSINESS UNIT

An SBU, in the strategic management sense, is normally an entire division in large

corporations or one of the firms of a diversified company that carries out a certain
business - in one of the business sectors the firm operates. This approach entails the
creation of SBU's to address each market in which the company is operating.

SBU OF VIDEOCON COMPANY

 KEY STEPS TOWARDS STRATEGIC
PLANNING

MISSION

“To delight & deliver innovative product through ingenious strategy intrepid
entrepreneurship, improved technology, insightful marketing and inspired thinking
about the future.”

VISION

“To bring happiness in every home with global presence offering high quality “e”-
products to ease & enrich human life”

GOAL

“To provide a much higher level of service to all those who seek information”
 BCG MATRIX

In BCG Matrix product or business unit are identified as Stars, Cash Cow,
Dogs, Question mark. BCG Matrix can use for resource allocation. The Matrix can be
explained are as follows.

Stars (high growth, high market share)

• Stars are using large amounts of cash. Stars are leaders in the business.
Therefore they should also generate large amounts of cash.
• Stars are frequently roughly in balance on net cash flow. However if needed
any attempt should be made to hold your market share in Stars, because the
rewards will be Cash Cows if market share is kept.

Cash Cows (low growth, high market share)

• Profits and cash generation should be high. Because of the low growth,
investments which are needed should be low.
• Cash Cows are often the stars of yesterday and they are the foundation of a
company.
Dogs (low growth, low market share)

• Avoid and minimize the number of Dogs in a company.

• Watch out for expensive ‘rescue plans’.
• Dogs must deliver cash, otherwise they must be liquidated.

Question Marks (high growth, low market share)

• Question Marks have the worst cash characteristics of all, because they have
high cash demands and generate low returns, because of their low market
share.
• If the market share remains unchanged, Question Marks will simply absorb
great amounts of cash.
• Either invests heavily, or sell off, or invest nothing and generate any cash that
you can. Increase market share or deliver cash.

BCG MATRIX OF VIDEOCON COMPANY IN

COMPARISON TO OTHER ELECTRONIC
COMAPNIES
BCG MATRIX OF VIDEOCON COMPANY
ACCORDING TO ITS PRODUCTS
 SWOT ANALYSIS OF VIDEOCON
COMPANY
The SWOT is a strategic planning tool to evaluate Strength(S) Weakness (W)
Opportunities (O
) & Threats(T) involved in a project, in a business venture or in any other situation
requiring a decision. The SWOT analysis is to explained with help of following
diagram:-
PRODUCT LIFE CYCLE OF VIDEOCON

• VIDEOCON LCD AT INTRODUCTION STAGE

• VIDEOCON APPLIANCES IS AT STAR STAGE

• VIDEOCON MOBILE PHONES &

TELECOMMUNICATION SERVICES IS AT CASH COW
STAGE

• VIDEOCON OIL & GAS DIVISION IS AT DOGS STAGE

 REVIEW OF LITERATURE

ARTICLE 1:- VIDEOCON HITS THE HINTERLAND

Author: - John A. Ronald

Publisher: - Business World
Year: - 1998

This article includes that the market share of Videocon International (VI) has declined
to 22 percent from 27 percent in colour televisions (TV). its operating profit margins
have fallen to 5.9 percent in 1998 from 7.5 percent in 1995. Its net profit had
increased to Rs125.04 crore in 1997-98 from Rs82.3 crore in 1996-97. It gives a
commission of Rs1,500-2,000 per TV set to its dealers, compared to Rs1,000 of Akai.
VI sells more than 5 lakh black & white TVs per annum. The Videocon group's
investment of Rs300 crore in real estate and other deals has declined considerably. VI
has a research and development wing which has developed receivers, transformers
and sound systems to suit the Indian conditions. VI offered a money back scheme for
its Bazooka TVs. It sold 50,000 sets in a month under the scheme, resulting in 37
percent of the sales in the last quarter. It is trying to reduce cost by re- designing its
production line to produce 18-20 products and models. The promoters, the Dhoots,
have made an open offer for a 2 percent stake in VI at Rs140 per share. VI plans to
buy Philip's factory in Calcutta. It has made capital investments and its depreciation
has increased to Rs70 crore from Rs25 crore. Videocon Appliances, engaged in the
manufacture of air- conditioners, refrigerators and washing machines, had posted a
net profit of Rs15.1 crore in 1996-97 from Rs34.8 crore in 1995- 96. Videocon VCR,
which makes video cassette players and recorders, has posted a net profit of Rs8 crore
in 1996-97 (Rs37 crore in 1995-96). Videocon Narmada Electronics, which produces
glass shells for picture tubes, incurred a loss o Rs7.7 crore in the 6 months ended
September 1997. The Dhoots plan to merge this company with VI.
ARTICLE 2: - VIDEOCON LAUNCHES NINE MOBILE
HANDSETS; EYES 1 MN SALE MONTHLY

Author: - S. kaither
Publisher: - Times Of India
Year: - 2010

In this article it has discussed that Videocon today launched nine mobile handsets and
it plans to sell a million devices per month in the country same year. Videocon has
been so far selling 2.5-3 lakh units a month. With the nine launches, its offering has
risen to a total of 21 handsets from 12 at present. Thus the company plan to sell one
million units every month as per the customer approachable price. At present, global
brands like Nokia, Samsung, LG, and Sony Ericsson together with Indian players like
Micromax have over 90 per cent market share. Mobile phone market has been one of
the fastest growing markets. However, there is a big gap between the international
brands and domestic ones. Videocon aimed to bridge the gap.

ARTICLE 3: - VIDEOCON TO EXTEND REACH IN WEST ASIA

Author: - Vinnit Alex

Publisher: - Business World
Year: - 2009

As part of its strategic plans to become an established global player, Videocon group
has decided to extend its operations in West Asia by January 1999. The operations are
expected to be based in Dubai where it plans to launch its entire range of products. It
has also decided to revive its operations in Indonesia which is affected by the South
East Asian crisis. It has already entered into Bangladesh market by establishing its
presence in Dhaka.
ARTICLE 4: - VIDEOCON ADD COMFORTS TO YOUR LIFE

Author: - Shefali Roy

Publisher: - Capexil
Year: - 2009

Videocon is the Indian Multinational that is also known as the 'desi' brand which is
favourite among Indians in terms of electronic appliances. It knows its customers
from their nerves as they share the same roots. Since years, Videocon has been
nurturing Indian homes and ruling in their hearts. The company has always served its
nation with the latest technology rich in environment friendly features and prices
according to the citizens. Its popularity among Indians made it the major shareholders
of the electronic industry. Videocon has made them a serious brand by building the
products that are available and easily approachable for every kind of person.
Videocon Refrigerators are famous for the quality that they have in their architecture
and enduring performance. A technical tie-up with Toshiba Corporation of Japan
launched India's first world-class colour Videocon televisions.

ARTICLE 5:- VIDEOCON TO LAUNCH GSM SERVICES IN

GUJARAT

Author: - Arnaw Kumar

Publisher: - times of india
Year: - 2010

Videocon Telecommunications Limited is all set to launch its GSM Mobile services
in Gujarat Telecom circle. GSM Mobile services will be launched initially in
Ahmadabad, Anand, Ankeleshwar, Bardoli, Vadodara, Bhavnagar, Junagarh, Navsari,
Rajkot, Surat, Valsad and Verawal. It will gradually expand its network in other parts
of Gujarat. Videocon’s GSM SIM-Kits will be available in all the Next Retail outlets
in the major cities of Gujarat. Currently Videocon Telecommunications Ltd has
commercial GSM Mobile services in Tamil Nadu, Chennai and Mumbai circles. It has
planned to extend its services to all the major states by the end of this September.

ARTICLE 6: - VIDEOCON PLANS 500MW POWER PLANT IN

MAHARASHTRA

Author: - Amritha Pillay

Publisher: -Business Today
Year: - 2010

The Videocon Group is planning to start a 500MW power plant in its homeland and is
looking for suitable land as well as a coal-transportation solution in Maharashtra. It
also expects to achieve financial closure for its Gujarat-based 1,200MW power plant
by end-March. The financial closure for the first phase of 600MW has been achieved;
the second phase’s financial closure is getting completed. After financial closure,
power projects take another three and a half years to be commissioned.

ARTICLE 7: - SHAHRUKH KHAN AND MS DHONI TOGETHER

FOR VIDEOCON AD

Author: - Krissy
Publisher: -
Year: - 2007

Shahrukh Khan and Mahendra Singh Dhoni will swap their respective roles for the
Videocon advertisement. ShahRukh Khan and MS Dhoni will first time appearing for
a commercial. The idea behind it is that Videocon has created magic by bringing both
the super stars together on a single platform to create a unique campaign. The core
idea of the campaign is to celebrate the spirit of success - no matter the role life gives
you, always play it big and emerge as a champion. It is heard that both the superstars,
SRK and MS Dhoni gel pretty well on the set. Ogilvy and Mather (O&M) has created
the Videocon ad.
 CONCLUSION

Videocon is an industrial conglomerate with interests all over the world and based in
India. The group has 17 manufacturing sites in India and plants in China, Poland, Italy
and Mexico. It is also the third largest picture tube manufacturer in the world.
Today the group operates through five key sectors:
• Consumer electronics
• Mobile Phones
• DTH
• Telecommunication
•
In BCG Matrix product or business unit are identified as Stars, Cash Cow,
Dogs, Question mark. BCG Matrix can use for resource allocation.

• STARS (high growth, high market share)

• CASH COWS (low growth, high market share)
• DOGS (low growth, low market share)
• QUESTION MARKS (high growth, low market share)

BCG MATRIX Of Videocon according to its products:

• VIDEOCON LCD at Introduction stage.

• VIDEOCON APPLIANCES at Star stage.
• VIDEOCON MOBILE PHONES & TELECOMMUNICATION
SERVICES at Cash Cow stage.
• VIDEOCON OIL & GAS DIVISION at Dogs stage.
 REFERENCES
• http://www.faqs.org/abstracts/Business-international/VIDEOCON-HITS-
THE-HINTERLAND-THE-PICTURE-GETS-SHARPER-AT-
PHILIPS.html#ixzz0mh9ItA5G

• http://www.faqs.org/abstracts/Business-international/VIDEOCON-TO-
EXTEND-REACH-IN-WEST-ASIA-RIDING-ON-SALES-VIDEOCON-H1-
NET-UP-AT-Rs6897-CRORE.html#ixzz0mhGjUyOC

• http://www.articlealley.com/article_1199524_45.html

• http://www.bpotiger.com/2007/11/shahrukh_khan_and_ms_dhoni_tog_1.html

• www.highbeam.com/doc/1G1-149628585.html

• www.liebertonline.com/doi/abs/10.1089/153056201750279584

• www.article.wn.com/.../Videocon_launches_nine_mobile_handsets_e
yes_1_mn_sale_monthl