CASE STUDY ON

Color Television
 Introduction
 Private Sector Consumer durables.

 Turnover in 1994 is 1700 crore & in 1996 is increased to

2500 crore.

 Company is divided into two core areas

 Core Business
 New Business.

 Joint venture with Sanyo.

Strategies followed
 Product Quality philosophy

Quality strategy

Make your Component Adapt Technology to

yourself match Market conditions
 MAKE YOUR COMPONENT YOURSELF

 Ventured in 1983 for Color TVs.

 Started production of components in 1985.

 Only Picture tubes and semi-conductors are

procured.

 Meeting 65% of competitors needs.

Steps For New Product Development

Step I Marketing Depatment Gets Inputs From Various Sources.

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Step II ●
Plans for Design and Development

Step III ●
Joint Product Development

Step IV ●
Lower Cycle Time

Step V After Approval, the Concept is Ready for Manufacturing.

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 Techniques Followed

•Four parallel teams work together.

• KANBAN system

• Fast Technology and flexible manufacturing system.

•Adaptation
 BPL’s product adaptation

• Surge Protection for India.

• Built in Back-Up System.

• Customized refrigerator for Indian Market.

• Radiators in speaker for better bass.

 Benefits from the systems

 Future product plans

 Pricing
Premium Pricing

Snob Value

 Distribution
 Promotion

 Believes in pull rather than push.

 In 1997 total budget of promotion was 150 cr.in which

ad budget was 100 cr.

 Market share of BPL C T was 30% in 1997

 Done suuccessful campaign by using alisha and elephant

in made in india song.

 Endorsed Amitabh bachchan.

 Weakness in promotion : Using different strategy for and
positioning for different products.

 Solution contemplated: Umbrella campaign for

advertising.
Summary
 SUMMARY

o Bpl ltd.continues to be India largest CTV manufacturer.

o CTV market share of company is 20.3%.
o CTV division of company contributes about 57.5% of
companies revenue.
o 20% of product is exported.
o As we discuss BPL followed intensive,integrative,
and diversification strategies of growth.
o It is challenger in its core business seg and leader in few.
o Strength of BPL CTV is indigenisation and technological
adaption, premium pricing, strong distribution and
promotion.
 Issues for Discussion

 Competition with MNC’s has to be fought with

technology.

 Competition with domestic players have to be dealt with

Price.

 Suggest a strategy that reconciles both these concerns.

Can BPL successfully adopt such a strategy?
 Suggestions

 Backward Integration: 65% market share

 Use of KANBAN (JIT)

 Lower inventory time.
 Reduction of cost and waste.
 Quality control

 Compensation :
 Domestic-Foreign market share.
 20% export.
 Sanyo Likely
Joint Venture

 Market Development:
 More inclination to middle class.
 Higher and lower end products.
 Create infrastructure in rural areas.
 One Way: “One Brand One Product”
 Pricing the Indian Way

 More preference to premium pricing

 Perception change.

 Penetrative and Skimming Pricing policy.

 Forward Integration: 60 showrooms.


In a Nutshell We Suggest

Glocalization
 2. Issue for Discussion

 What ,according to you, are the main considerations for

BPL going for different strategies in Different segments
?
 Is its perception correct ?
 Different Segments

BPL Loewe ●
Status seeker

BPL Matrix Flat ●

Technology seeker
screen TV

BPL Studioline ●
Performance seeker

The BPL Regular ●

Risk-averse value seeker
Range

BPL Prima ●
Low-end buyer
 Main Consideration

 To gain a competitive edge over rival brands in the

colour television (CTV) segment

 Strategy aims at leveraging the mother brand and

creating individual sub-brands, catering to specific
consumers and market segments

 To maintain and consolidate leadership in the face of

market competition .
 3rd Issue

 The common electronics market has undergone a sea

change with the entry of brands like LG, Samsung,
Sansui and sharp. In the changed context how far will
BPL’s USPs hold? Justify your answer
 Price Perspective

 Reduce Premium Pricing to certain extent.

 Market penetration strategy of pricing.

Product Perspective
 Focus on economical class.
 Technological Perspective

 BPL can do backward and forward integration

whenever necessary.
 Focus on newer technology.

Promotion Prespective

 Rather than concentrating on single USP,

focus on multiple USP.