MARKETING ANALYSIS

ON

Submitted in partial fulfilment of the requirement for the award of Bachelors of Business Administrative (BBA)

Made By: Mrinal kakkar

Under Guidance of: Ms. HIMANI GROVER

BharatiVidhyapeethUniversity School of Distance Education Academic Study Centre- BVIMR, New Delhi

ACKNOWLEGEMENT

Project work is never the work of an individual. It is more a combination of ideas, suggestions, and contribution and work involving many jobs. One of the most important parts of writing a report is the opportunity to thank all those who have contributed to it. The list of expression of thanks, no matter how extensive, is always incomplete and inadequate. This acknowledgement is no exception. I want to express my sincere gratitude towards Ms HIMANI GROVER who provided me with her expert guidance and invaluable suggestion. I would like to thank my classmates and all those who directly or indirectly helped me in one or the other way in the successful completion of the project.

TABLE OF CONTENT CHAPTER 1: INTRODUCTION OF COMPANY:1. Nature of business. 2. Types & ownership pattern. 3. Organization structure. 4. Production structure. 5. Organizational strategies.

CHAPTER 2: INDUSTRIAL ANALYSIS:1. Industry overview :- (Growth rate of industry, contribution to GDP). 2. Current Issues :- (From newspaper, Journals-for company and industry). 3. Key competitors. 4. Environment scanning:-political environment, socio-cultural environment, environment, economic technological

environment, environmental issues (Green environment) and legal environment. 5. Porters five forces model of competition-Michael Porter.

CHAPTER 3: MARKETING STRATEGIES:1. Products of company. 2. 4Ps (Product, Price, Place & Promotion). 3. STP (Segmentation, Targeting and Positioning). 4. Distribution channels. 5. Promotion strategies.

CHAPTER 4: FINANCIAL ANALYSIS:1. Sources of finance. 2. Ratio analysis Any 5. 3. Net profit/balance sheet (from annual report) Analyses.

CHAPTER 5: KEY LEARNINGS FROM THE COMPANY AND RECOMMENDATIONS:-

1. Performance Analysis of the Company. 2. Market share/growth rate of company. 3. SWOT Analysis of the Company.

CHAPTER 6: Findings CHAPTER 7: Conclusions and Suggestions Bibliography

Reference Books, Journals, Newspapers, Web Sites, Reports etc. are to be listed out here.

CHAPTER 1: INTRODUCTION OF COMPANY:1. Nature of business. 2. Types & ownership pattern. 3. Organization structure. 4. Production structure. 5. Organizational strategies.

INTRODUCTION
Videocon Industries Ltd. was one of the initials companies that made it to the World. Videocon Electricals captured the initial Indian Electrical market and topped the charts for its

products such as Refrigerators, television etc. before other players such as Samsung, Whirlpool etc .entered Indian market. Videocon was one of the first Electronic Company to Collaborate with Japanese Toshiba Ltd as early as 1985. It is one of the biggest Indian Electrical brands not only in India but also globally. Indeed, Videocon is one of the fastest paced Electrical Products worldwide. Videocon thus posed an exciting opportunity to study a brand that is automatically associated with youth and technology. Videocon deems it a privilege that it is in a position to prolong instances of joy and spirit. And lend muchneeded variety and flair in everyone's life.

An Indian multinational, a global force in display technologies and a group on the threshold of even bigger things.There are new horizons to breach, new frontiers to conquer and simply no pause buttons on the Videocon play. Expect the unexpected, the uncharted and the unlimited.

NATURE OF BUSINESS
Manufacturer & Exporter Set Top Box, of Conventional Colour TV and LCD TV Receiver Sets, D2h

VCD/MP3 Players, Air Coolers, Music Systems, Airconditioners, Home

Theaters like Refrigerators, Automatic & Semi Automatic Washing Machines, Dish Washers, Microwave Ovens, Mixer, Grinders and Water Purifier like TV, DVD/MP3 & Audio Components, Glass Shells for Colour Picture Tubes, Populated PCBs, Tunners, Monitors for Computer, Compressors and other Electronic Assemblies and Sub-Assemblies like Digital Diaries, Kiddy PC, Data Projector, Power Inverter, Digital MP3 Player and Palm Top like ISP, Content and Web Solutions. Crude Oil Extraction 50000 Barrels per Day. 1050MW Power Generation. Videocon LCD TV, Videocon Air Conditioners, Videocon Refrigerators, Videocon Washing Machine.

Type and Ownership Pattern

Consumer Electronics, Home Appliances & Compressor manufacturing in India

Videocon enjoys a pre-eminent position in terms of sales and customer satisfaction in many of our consumer products like Color 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. Refrigerator manufacturing is further supported by our in-house compressor manufacturing technology in Bangalore. Videocon has the largest distributed manufacturing base across India 12 facilities. It has the Capacity to manufacture 4 million CTVs, 2.5 lacs washing machines, 1 mn. DVD players, 4.8 mn refrigerators.

Displayindustry anditscomponents
With the Thomson acquisition Videocon has emerged as one of the largest Color Picture tube manufacturers in the world operating in Mexico, Italy, Poland and China, continuing to lead through new innovative technologies like slim CPT, extra slim CPT and High Definition 16:9 format CPT.

ColorPictureTubeGlass
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.

Oil and Gas

An important asset for the group is its Ravva oil field with one of the lowest operating costs in the world producing 50,000 barrels of oil per day. The group has ambitious plans for expansion in this sector globally.

LOGO LOGIC
This is the new Videocon symbol. It reiterates the ethos of a company dedicated to maintaining the highest international standards of excellence through quality, technology and innovation. For over a decade now, Videocon has been bringing the latest and very best in Consumer Electronics and Home Appliances. Successfully adapting the best of internationaltechnology to suit Indian needs, and crafting it to improve the quality of life as million of satisfied customers will agree.

The new symbol of Videocon asserts its passion for global impact, and the two Es on either side represent the Groups wide spectrum of interests ranging from Electronics to Energy. Along with the steely glint, this communicates the group's global ambition, its strength, sterling credentials and innovative drive. A symbol that proclaims a paradigm shift.A sign that represents the new force that is Videocon.Thus recapitulating our principle of reaching out and touching the lives of millions of people Worldwide.

OWNERSHIP PATTERN

Sr. Category of shareholder No

Number of shareholders

Number of shares Total number held in de of shares materialized form

As a % As a % of of (A+B) (A+B+C)

(A) (1) (a)

Shareholding of Promoter and Promoter Group Indian Individuals/ Hindu Undivided Family 13 1619838 1292950 0.87 0.73

(b)

Bodies Corporate Sub-Total (A)(1)

44 57

153823583 155443421

152711452 154004402

82.6 83.47

69.57 70.3

(2) (a)

Foreign Individuals (Non- Resident Individuals/ Foreign Individuals) 0 0 0 0 0

(b) (c) (d)

Bodies Corporate Institutions Any Other (specify) Sub-Total (A)(2)

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Total Shareholding of 57 Promoter and Promoter Group (A)= (A)(1)+(A)(2)

155443421

154004402

83.47

70.3

(B) Public shareholding (1) (a) (b) (c) (d) Institutions Mutual Funds / UTI Financial Institutions/ Banks Insurance Companies Foreign Institutional Investors Sub-Total (B)(1) 21 36 5 95 157 36571 304403 5600352 13467563 19408889 35228 291166 5599752 12706367 18632513 0.02 0.16 3.01 7.23 10.42 0.02 0.14 2.53 6.09 8.78

(2) (a) (b) (i)

Non-institutions Bodies Corporate Individuals Individual Shareholders holding 342862 nominal share capital up to Rs. 1 lakh 4685290 2998613 2.52 2.12 1927 5516620 4962476 2.96 2.5

(ii)

Individual Shareholders holding nominal share capital in excess of Rs. 1 lakh

19

1171618

1171618

0.63

0.53

(c)

Any Other (specify) Sub-Total(B)(2)

0 344808

0 11373528 30782417

0 9132707 27765220

0 6.11 16.53

0 5.15 13.93

Total Public Shareholding (B)= 344965 (B) (1)+(B)(2) TOTAL(A)+(B) (C) Shares held by Custodians and against which Depository Receipts have been issued 345022 2

186225838 34867863

181769622 34862403

100 0

84.23 15.77

GRAND TOTAL (A)+(B)+(C)

345024

221093701

216632025

100

100

Organisational structure of Videocon

Production structure

Cost cutting Videocon was better positioned to shift the activities to low-cost locations and also it could integrate the operations with the glass panel facility in India with the CPT manufacturing facilities acquired from Thomson S.A. Videocon wanted to leverage its position in the existing parts of the business and this acquisition would give it a strong negotiation position and could reduce impact of glass pricing volatility. Videocon could also reduce the costs by upgrading and improving the existing production lines. Vertical Integration The acquisition helped Videocon in vertically integrating its existing glass-shell business where it had been enjoying substantially high margins.[8] Videocons glass division had the largest glass shell plant in a single location. This gave the company an unrivalled advantage in terms of economies of scale and a leadership position in the glass shell industry. The acquisition also gave Videocon a ready-market for its glass business and it was part of Videocons long-term strategy to have a global vertically-integrated manufacturing facility. Rationalization of Product Profile Videocon modified its product profile to cater to the changing market needs like moving away from very large size picture tubes to smaller ones. Apart from the overall strategy Videocon also had a plan on the technological front. It wanted to improve the setup for the production line and line speed post-merger. Its focus was to increase sales while reducing the costs and thereby improving the productivity of the existing line. The company also wanted to foray in a big way into LCD panels back-end assembly. On the sales front the company wanted to leverage on the existing clients of Thomson and build relation as a preferred supplier to maximise sales. Also, Videocon could benefit from OEM CTV business with the help of Videocons CTV division, invest for new models and introduction of new technologies. Videocon has not been able to turn the plant around in Italy still. However it is getting support from the local governments (which want to prevent job cuts) in form of grants. The government is in fact trying to set up a Greenfield venture in form of a LCD manufacturing facility in partnership with Videocon. The banks are also supporting Videocon and with help from all these quarters Videocon expects to turn around the plant in Italy.[13] The Thomson plant has not turned around in Mexico as well and in fact production has been reduced over there.InPoland,the situation is more promising and Videocon hopes that plant over there will get in black in the very near future.[14] However the surprise has been in the Chinese market .Despite facing a highly competitive market Videocon has managed to turn a plant around while the other is on its way. In China Videocon is adopting a different strategy for manufacturing CTVs as the local players dominate the market .It plans to supply these players by taking advantage of low-cost nature of mainland(the number targeted by it about 6 million CPT,s)

VIDEOCON STRATEGIES
y Multi-brand strategy
Videocon International was the first Indian company to adopt the strategy of multi-brands. Apart from its mid-priced brand Videocon, the company now hawks Toshiba, a premium brand, and the low-priced brands Akai and Sansui. The multi branding technology paid off as Videocon managed to hold on to a combined market share of around 19.6 percent, with LG at 25.9 percent and Samsung at around 13.8 percent. Overall, the shift in the power to trade is probably one of the defining developments. It is important since the TV companies themselves have taken it seriously and embarked on crafting longer-term strategies to accommodate this development. The effectiveness of their strategy and the responses of the other players promise to deliver a few more years of enterprising developments in the Indian TV market.

y Backward Integration
Videocon integrated backwards by getting into manufacture of components such as electron guns, metal parts and deflection yokes for CTVs and compressors, and electric motors and plastic components for households appliances such as washing machines, refrigerators and Air conditioners. The group integrated further to get in to manufacture of glass panels and funnels, the key components for the manufacture of color picture tubes. Videocon enjoys a unique synergy in the global CTV business from glass to CRT (Cathode Ray tubes) to CTVs. - (From Sand to CTV). Together with other components for households appliances. This high degree of backward integration bestows upon the company a unique benefit over competition.

y Videocon's Revenue mix

Performance Measures

CHAPTER 2: INDUSTRIAL ANALYSIS:1. Industry overview :- (Growth rate of industry, contribution to GDP). 2. Current Issues :- (From newspaper, Journals-for company and industry). 3. Key competitors. 4. Environment scanning 5. Porters five forces model of competition-Michael Porter

Industry overview
COMPANYS PROFILE

Today the group operates through 4 key sectors:

Consumer Electronics, Home Appliances & Compressor manufacturing in India

We enjoy a pre-eminent position in terms of sales and customer satisfaction in many of our 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. Refrigerator manufacturing is further supported by our in house compressor manufacturing technology in Bangalore.

Display industry and its components

With the Thomson acquisition Videocon has emerged as one of the largest Colour Picture tube manufacturers in the world operating in Italy, Poland and China, continuing to lead through new innovative technologies like slim CPT, extra slim CPT and High Definition 16:9 format CPT.

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.

Oil and Gas

An important asset for the group is its Ravva oil field with one of the lowest operating costs in the world producing 50,000 barrels of oil per day. The group has ambitious plans for expansion in this sector globally.

Current issue of Videocon

Videocon V1688 Twist & Turn available in market

Description:
Videocon V1688 Twist & Turn is the new stylish and well designed mid-range mobile phone by Videocon which has just been launched in the market. The mobile comes loaded with lots of attractive and impressive features as well as dimension. This mobile is priced at Rs. 6,995/- in Indian market which is affordable than other mobiles having same features.

Videocon V1688 Twist & Turn is the 90 degree roted full QWERTY keyboard impressive mobile phone that has 3.2 inches touchscreen display screen. This display screen of the device generates resolution of 320x480 that shows pictures of better quality.

This amazing designed mid-range mobile has all the music features such as MP3 and MP4 with formats of 3GP, AVI, RMVB video etc. It is boasted with a 2 mega pixel of camera that can capture photographs at resolution of 1600x1200 pixels and video recording at format of 3GP and 15fps. It is also loaded with dual speakers for loud music and a 3.5 mm audio jack.

The mobile supports Java language, EDGE & GPRS and stereo Bluetooth streaming (A2DP), while comes pre-loaded of popular social networking sites like MSN, Yahoo, Facebook and Skype. The mobile comes pre-installed a 2GB microSD while its memory can be upgraded up to 4GB through using a memory card.

The mobile, Videocon V1688 Twist & Turn, supports dual SIM (GSM+GSM) that provides excellent networking facility. This impressive handset is corporated with a solid 1000 mAh battery that allows long talk and standby time. The mobile is available in Red, Yellow and Silver colour shades.

Important Competitors
LG ELECTRONICS
LG Electronics price more it rightly them understood strategically, Having sharpby the consumer them the motivations sharply finer and to create magnetic the

products, magnetism

position understood arrow of

keep

making in

potent. opted for taken

differences

consumer over the

motivations, blanket-all

reasons-to-buy the other

differentiation It is an

approach

most

players.

aggressive

marketer. It focuses on low and medium price products.

SAMSUNG
Initially the strategy of Samsung in India was to create premium image by

emphasising global brand. After facing stiff competition from another Korean majorLG, 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.

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 Company, on the export front. It has technical tieup with the Japan Victor

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--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 India and is one thus of the largest has advantages manufacturers of economies of television and its of scale and low components in 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. Besides understanding the strategy adopted by different players, several other factorsindustry 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.

ENVIRONMENTAL SCANNING P EST ANALYSIS

1. P olitical Factors
y y y

Labour unions effects a lot the production Resolution to reduce emission of carbon footprints in the atmosphere Anti-dumping duty on imported color picture tubes

2 . Economical Factors
y y y

Growth of retail sector

expected to reach 16% by 2011-12from 4% in 2007

High investments are needed in the consumer durables Emergence of organized retail market with large players likeCroma, Next, Reliance Digital - leading to lower prices and higher varieties

3 . Social Factors:
y y y y

Changing perception of luxury to necessity In rural areas there is poor infrastructural facilities likeavailability of electricity Demand of the consumer durables is seasonal and cyclic Highly growing consumer durable market

4 . Technological Factors:
y y y

Improved electricity consumption Higher quality products Technological is changing at a very fast rate

PORTERS MODEL
Potential entrants (Threat of Entry)

Industry Suppliers Competetitors (Supplier Power) (Segment rivalry)

(Buyer Power) Buyers

Substitutes (Threat of substitutes)

In order to understand the industry better, we analyze the industry using Porters Five Force Model- Threat to entry - Rivalry of among existing firms - Bargaining power of buyers - Bargaining Power of Suppliers - Threat of Substitutes

Threat to Entry-

y y

Entering the CTV market isnt very easy. One of the most important features needed is a good distribution system which isnt something that can be developed overnight. Also a television today is a style statement. Therefore the brand plays an important role in influencing the purchase decision. For a new company then entering this market, not having a recognized brand name is a threat to entry.

Rivalry among existing firms-

There is strong competition among the current players. The main players being LG, Samsung, Onida, Videocon, Philips, Sansui. Some of the regional players areHyundai and Haier are new entrants in the CTV space in addition to a number of small regional players.

This increased competition has ensured that advertising costs are an integral part of the players total cost. A lack of product differentiation means that price is a competitive feature that intensifies rivalry. The highest price reductions during 200203 to 2005-06 were in the 20inch and 21inch CCTV category.

y y

With the future being in LCDs, this market is likely to see price reductions future. It is expected that realizations will fall with increased competition.

Bargaining Power of Buyers-

y y y y

The TV market today is a consumers market where the consumer has the upper hand with him having the power of choosing from a variety if brands. This bargaining power of the buyer has forced the players to offer credit facilities on sale, to provide lower EMIs and excellent after-sales service. The intense dealer competition also benefits the consumer in terms of prices and offers available. Inventory carrying costs for television companies are high. This is a boon for the consumers as it translates into higher bargaining power for the consume

Threat of Substitutes-

For a television, the substitute can only be a functional substitute. The functional use of a television is to watch programs, live events etc. This today can also be done on a computer.

y y

Theaters too can be a substitute to watching movies at home.

Today with various multiplexes and theaters providing screenings of live events such as sports telecasts etc along with the luxury of good food and the opportunity to enjoy the event with a number of other enthusiasts, the TV can be substituted if the TV is bought only to watch certain events.

However if the television on considered to be a style statement and a lifestyle statement, then consumers will seek to keep upgrading the type and the model of their television sets.

Bargaining Power of Suppliers-

y y y y

PCBs (Printed Circuit Boards) & CRTs (Cathode Ray Tube) are key raw materials in the production of CTVs. CRT accounts for 46-48 per cent of the total raw material costs of a CTV. PCBs and housing components account for 33-39 per cent of total raw material costs. Domestic CPTs prices tend to follow Global price trends. Therefore the suppliers do not have much of bargaining power in this regard. Cabinets are sourced from plastic manufacturers and as these manufacturers supply to different industries, they therefore do have a bargaining power, especially in comparison to CRT suppliers.

CHAPTER 3: MARKETING STRATEGIES:1. Products of company. 2. 4Ps (Product, Price, Place & Promotion). 3. STP (Segmentation, Targeting and Positioning). 4. Distribution channels. 5. Promotion strategies

1.Products of company
CONSUMER ELECTRONICS

PLASMA

SPILT AC

WINDOW AC

MOBILE

PHONES

WASHING MACHINE

REFRIGERATOR

HOME THEATER

MICROWAVE

DISH TV

LCD TELEVISION

4Ps
The 4Ps includes the Product, Price, Place and promotion.

Product Mix
Product mix is the set of all product and items a particular seller offers for sale. Product mix consists of various product lines. The width of a product mix refers to how many different product lines the company carries. The Videocon television has product mix width of five lines. I.e. plasma, LCD, Slim, flat and Conventional. The length of a product mix refers to the total number of items in the mix. i.e. for the line of LCD the length is 2 as it has two items 50 PDP and 42 PDP. The depth of the product mix refers to how many variants are offered of each product in the line, i.e. For LCD the depth will be 2. As Videocon is offering only one product in 50 PDP and 42 PDP. The three product-mix dimensions permit the company to expand its business in three ways.

y y y

It can add new product lines, thus widening its product mix. It can lengthen each product lines. It can add more product variants to each product and deepen its product mix.

Width, Length & Depth

Width = 5 (Plasma, LCD, Slim, Flat, Conventional)

Plasma

LCD

Slim 29 flat 21 flat

Flat

Conventional 21 FFST 20conv 14conv

50PDP42 LCD 42PDP32 LCD 26 LCD 20 LCD 19 LCD Length 5

29 slim 21 slim

15 flat

In the product mix of Videocon, it is having 37 different models, which gives them their product line Depth.

PLASMA

Plasma television technology is similar to the technology used in a fluorescent light bulb. The display itself consists of cells. Within each cell two glass panels are separated by a narrow gap in which neon-xenon gas is injected and sealed in plasma form during the manufacturing process. The main advantage of Plasma over CRT technology is that, by utilizing a sealed cell with charged plasma for each pixel, the need for a scanning electron beam in eliminated, which, in turn, eliminates the need for a large Cathode Ray Tube to produce video images. This is why traditional televisions are shaped more like boxes and Plasma televisions are thin and flat.

Advantages of Plasma Television:

y y y

Largest Screen Formats. Superior Contrasts. Versatile.

y y y y y y y y y y y

Capable Of Displaying Full HDTV &Dtv Signal. Capable Of Displaying Xga, Svga&Vga Pc Signal. Wide Viewing Angle. Wide Rage Of Richer Color Over 16 Million. Superb Realistic Images. Less Expensive Than Lcds. Life More Than 30,000 Hours. Wide Screen Aspect Ratio around 16:9. Perfect Flat Screen. Uniform Screen Brightness. Slim & Space Saving Design.

50" PDP

Integra 50 10000:1 Contrast Ratio 3:2 & 2:2 Pull Down HDMI Compatible 3-D Video Noise Reduction PC Input

42" PDP

16.77 Million Color 10000:1 Contrast Ratio 3.2 & 2:2 Pull Down 1500cd/m2 Brightness HDMI Compatible 3-D Video Noise Reduction

LCD
The flabs are out and now technology has switched over to sleek and slim products, LCD being the prominent amongst them. LCD technology is the recent breakthrough in consumer electronics and because of its esteemed advantages this segment is growing day by day. Videocon are launching this range under the sub brand Integra. INTEGRA term indicates the integration of various systems connectivity with LCDTV. This is an integration of best sound quality and excellent picture quality. What is TFT-LCD? Meaning of this term is Thin Film TransistorLiquid Crystal Display. TFT technology used in this category offers the best image quality in flat panels. This technology is also called as Active Matrix Technology.

40" LCD, 20" LCD, Slim

32" LCD, 19" LCD

26" LCD,

WithContinuousResearch&Development,Videocon brings a revolutionary advancement in physics & brings new Slim & Trim Television. The Most significant feature of the Slim & Trim Television is its one kind of super slim picture tube technology. This has enables us to make the TV 42% Slimmer. Slim Picture tube is a product with reduced depth providing the TV and monitor producers with opportunity to design Slim, flat and stylish TVs comparable to plasma or LCD panels maintaining Good picture Quality

29" SLIM 21" SLIM

Flat

Videocon Bada Woofer with Surrounds Bass Technology Bass Amplification by Dynamic Alignment (BADA) woofer is a revolutionary technology that offers a new sound to create an unbelievable sound space Videocon unique Bazoomba Woofer Technology Videocon's superior Bazoomba Woofer Technology incorporates a unique conjugate arrangement of Woofer motors that ensures rich bass reproduction.

The Bazoomba Woofer Technology Enables the generation of the lowest bass frequencies from a small enclosure (Bazoomba tube). Enables cleaner and tighter bass reproduction due to acoustic cancellation of distortion in the even harmonics

29" TFT 21" TFT 15" TFT

Conventional TV

21" FFST 20" CONV 14" CONV

Pricing

The pricing of the Videocons various models is as following. Plasma TV LCD TV Slim TV Flat TV : : : : Rs. 59,990 - 2, 40,000 Rs. 28,400 89,900 Rs. 10,400 18,900 Rs. 5,500 18,400 Rs. 4,600 - 9,500

Conventional TV :

Place
Videocon has its presence all throughout India. They have their presence in 25 states and each state has at least 2 divisions per state. In total they are having 78 divisions.Videocon has around 1800 dealers in India. They are having 96 service centers across India.

Promotional Activities
Focusing on LCD, Plasma and 29 Flat TVs since 2006. By institutional selling. Company used both TVC as well as print media for promotion. The company is using outdoor media promotions in hording and bus shelters to high light the feature packed advantages. Major tie ups in the background IIT alumni/ Videocon Santos ham film awards 2006 with ZEE and ICC Cricket champions trophy.

Seasonal offers
Trip to Germany during FIFA world cup Videocon bonanza offer ( har din diwali) during diwali Chance to win car, motor bike and LCD TV'

SEGMENTATION, TARGETING & POSITIONING (STP)

SEGMENTATION:
Market segmentation is the process in marketing of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs. Because each segment is fairly homogeneous in their needs and attitudes, they are likely to respond similarly to a given marketing strategy. They are likely to have similar feelings and ideas about a marketing mix comprised of a given product or service, sold at a given price, distributed in a certain way and promoted in a certain way. The process of segmentation is distinct from targeting (choosing which segments to address) and positioning (designing an appropriate marketing mix for each segment). The overall intent is to identify groups of similar customers and potential customers; to prioritize the groups to address; to understand their behavior; and to respond with appropriate marketing strategies that satisfy the different preferences of each chosen segment.

Segments based on Income

Plasma: Income group of more than 50,000 LCD: Income bracket of Rs 20,000 and above Slim: Consumer in the income bracket of Rs 9000-15000 Flat: Consumer in the income bracket of 7000-12000 Conventional: income bracket of Rs 3000-6000

Segments based on social class

Plasma: rich class LCD: upper middle class and rich class Slim: middle class Flat: middle and lower middle class Conventional: lower economic class.

Benefit Segmentation:
Conventional, Flat screen Slim, LCD, and Plasma can also segmented on the basis of benefits that an end consumer would receive from them.

User Status:
TV market can be classified into non users of TV and potential users in term of graduating to a higher segment like slim, LCD,Plasma from basic conventional TV.

Loyalty status:
On the basis of Loyalty status Hardcore Loyal: brand loyal to Videocon for a long time in terms of purchasing products of Videocon Shifting Loyal: who shift loyalty from other brands to another Switchers: not loyal to any brands so attract them to Videocon and convert they brand loyal.

TARGETING:
Once the firm has identified its marketing-segment opportunities, it has to decide how many and which ones to target. Marketers are increasingly combining several variables in an effort to identify smaller, better-defined target groups. The decisions involved in targeting strategy include: * Which segments to target? * How many products to offer * Which products to offer in which segments In premium segments like flat screens and FDPs the growth in sales has been many times the industry growth. More importantly, high end product sales are no longer restricted to metros. Consumer in tier-2 cities seems to be as evolved in lifestyle needs. The consumer profile, too,

has changed. Higher disposable incomes, greater aspirations and younger demographic have increased demands for the technologies. And Videocon is targeting this segment.

POSITIONING:
Positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. It is the 'relative competitive comparison' their product occupies in a given market as perceived by the target market.Once the competitive frame of reference for positioning has been fixed by defining the customer target market and nature of competition, marketers can define the appropriate points-of-difference and points-of parity associations.

Points of Parity (POPs) are associations that are not necessarily unique to the brand but may in fact be shared with other brands. They represent necessary-but not necessarily sufficientconditions for brand choice.

Videocon's Points-of-Parity are good quality Picture and good sound. Points-of-Difference (PODs) are attributes or benefits consumers strongly associates with a brand, positively evaluate, and believe that they could not find to the same extent with a competitive brand.

Videocon's POD is the quality product with low cost. With the strong backward integration Videocon can provide the products with low cost.

Thus, Videocon is positioned itself as a reliable and value-for-money

product

DISTRIBUTION CHANNELS IN THE INDUSTRY

The Refrigerator companies in the industry use different distribution channels to reach the customer. These are as follows:

1. In this type of channel the company uses its sales representatives to deal with the dealers directly. The dealers place the order through the sales representatives who visit them periodically, and the products are delivered directly from the company. Some companies appoint Direct Dealers who act as their Franchisee Outlets or their Exclusive showroom.

2. In this channel of distribution the company appoints distributors on the basis of District/ Population /No of Dealers to be handled by one distributor. The area of operation and its potential is also taken into consideration. Some of the companies make the distributor totally responsible from appointing the dealers to providing after sales service.

3.

In this channel of distribution the company appoints Distributors as well as Direct

Dealers. The company appoints distributors to deal with small dealers who order small quantities. With the dealers who have good potential and sales the company deals directly. The Korean Multinational follow this channel where they appoint Distributors for upcountry towns and direct dealers for big cities and major towns eg. Ahmedabad.

4.

In this channel the company appoints a C&F agent who acts on behalf of the company.

The C&F agent is totally responsible for appointment of Distributors and Direct Dealers. He sells to both the Distributors and the Direct Dealers at the same rates.

PROMOTION STRATEGIES
Product strategy
1. Stop all curved CPT production 2. Shift focus to LCD CTVs; target: by December 2007. 3. Launch Slim21 and focus Slim 29 immediately. Target is to have almost all CRTs production shifted to Slim by 2007 4. Take full advantage of Digital and HDTV revolution, gain leadership in HDTV Slim TV segment through OEM and model mix worldwide strategy. 5. Study unique product range / pro large to fill market gaps in markets such as Asia and Eastern Europe / CIS / South America 6. 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 Thomsons 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 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. Benefit from OEM CTV business with the help of Videocons CTV division, invest for new models, introduction of new technologies. 7. upgrade to LCD's schemes

y y

easy EMI. Re. 1 offer.

8. Improve after sales service 9. Free service camp on the wheels.

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. t 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, Sharp)

Cost Strategy
1. Leverage the strong base of Videocons 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. ThomsonVideocon partnership will have its own base of additional 4 million units CTV (other than India) 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 not 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.

CHAPTER 4: FINANCIAL ANALYSIS:1. Sources of finance. 2. Ratio analysis Any 5. 3. Net profit/balance sheet (from annual report) Analyses.

Cash Flow of Videocon industries ------------------- in Rs. Cr. -------------------

Sep '05

Sep '06

Sep '07

Sep '08

Sep '09

15 mths

12 mths

12 mths

12 mths

12 mths

Net Profit Before Tax Net Cash From Operating Activities Net Cash (used in)/from Investing Activities

451.83 1792.99 4492.92

913.67 1351.72

1082.90 1133.68

1294.78 -1193.44

578.34 647.41

-2843.94

-1268.50

-1909.68

-1018.71

Net Cash (used in)/from Financing 7681.64 Activities Net (decrease)/increase In Cash and Cash Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents 1395.73 0.28 1396.01

1232.47

-112.33

2602.30

481.53

-259.76 1396.01 1136.25

-247.15 1136.26 889.11

-500.82 889.11 388.28

110.22 388.28 498.51

INCOME STATEMENT
Income Statement 30-Sep09(12) Profit / Loss A/C Net Sales (10) Material Cost Increase Decrease Inventories Personnel Expenses Manufacturing Expenses Gross Profit Administration Selling and Distribution Expenses EBITDA Depreciation Depletion and Amortisation EBIT Interest Expense Other Income Pretax Income Provision for Tax Extra Ordinary and Prior Period Items Net Net Profit Adjusted Net Profit Dividend Preference Dividend - Equity Rs mn 10% 91630.41 100.00 56268.43 61.41 -124.47 1264.23 8313.37 -0.14 1.38 9.07 30-Sep08(12) Rs mn 10% 30-Sep07(12) Rs mn I0%

97536.54 100.00 52933.45 54.27 -22.98 1158.18 -0.02 1.19

82854.24 100.00 49300.08 59.50 -318.74 1161.28 2593.66 -0.38 1.40 3.13

13496.32 13.84 29971.57 30.73 6698.91 6.87

25908.85 28.28 8330.43 9.09

30117.96 36.35 12863.34 15.53 17254.62 20.83 5017.83 6.06

17578.42 19.18 5771.52 6.30

23272.66 23.86 6602.07 6.77

11806.90 12.89 6363.61 340.15 5783.44 1040.00 0.00 4743.44 4743.44 36.81 0.00 6.94 0.37 6.31 1.13 0.00 5.18 5.18 0.04 0.00

16670.59 17.09 4011.03 288.22 4.11 0.30

12236.79 14.77 3106.51 1663.62 3.75 2.01

12947.78 13.27 3119.58 -1278.10 8550.10 3.20 -1.31 8.77

10793.90 13.03 2312.14 0.00 2.79 0.00

8481.76 10.24 8481.76 10.24 36.81 803.02 0.04 0.97

9828.20 10.08 36.81 0.00 0.04 0.00

Balance sheet
Balance Sheet of Videocon Industries
Sep ' 09 Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total Notes: Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity sharesoutstanding 3,056.96 10.83 122.93 2294.07 2,524.79 214.72 178.17 2294.51 1,906.24 1,618.68 230.38 112.59 2210.94 94.13 81.65 2209.86 321.18 51.79 207.72 2065.26 8,820.90 1,521.48 7,299.42 7,641.68 1,444.55 6,197.13 5,142.49 4,425.46 4,449.32 1,616.44 1,095.51 885.44 9,004.95 4,298.83 4,706.12 1,314.15 3,064.90 8,947.78 4,310.63 4,637.15 1,289.52 2,695.59 8,083.16 7,127.93 5,578.62 53.52 924.57 951.84 6,735.04 2,349.51 4,401.25 3,604.34 3,343.50 3,608.39 2,776.10 1,916.14 1,352.80 473.47 229.41 95.00 46.01 6,929.63 229.30 46.01 6,538.49 220.95 46.01 220.84 46.01 206.53 65.24 -

-------------Rs in crore---------Sep ' 08 Sep ' 07 Sep ' 06 Sep ' 05

5,357.91 3,847.63 3,420.56

16,384.59 14,819.39 10,884.50 9,075.67 6,941.90

3,376.67 2,847.09 2,286.77 4,652.98 3,356.27 2,340.00 612.98 608.28 699.23 338.79

2,092.50 1,781.17

3,526.05 3,329.96 3,563.88 -

16,384.59 14,819.39 10,884.50 9,075.67 6,941.90

Sep ' 09 (Lacs)

Sep ' 08

Sep ' 07 Sep ' 06 Sep ' 05

SOURCES OF FINANCE IN THE COMPANY

Equity share capital, Preference Share Capital and Loan Funds are divided into Two parts : 1. Secured Loans 2. Unsecured Loan In September 5 Company Equity Share capital is 266 and it continuously increasing in subsequent date of this month, but company does not increasing Preference Share Capital, it is constant in subsequent date of this month. Company is also increasing their Secured and Unsecured Loan. Company taking secured Loan on September 05 was 277.10, but it showed a large increase in September 09, it increased by 233.79. Secured Loan also increasing in September 05 to September 08, but in September 09 it is decreased by 1245.83

FINANCIAL RATIOS
Key Financial Ratios of Videocon Industries ------------------- in Rs. Cr. -------------------

SSep05

Sep'06

Sep '07

Sep '08

Sep '09

Investment Valuation Ratios Face Value Dividend Per Share Operating Profit Per Share (Rs) Net Operating Profit Per Share (Rs) Free Reserves Per Share (Rs) Bonus in Equity Capital Profitability Ratios 10.00 2.50 41.44 264.3 151.7 -10.00 3.50 60.65 326.66 161.05 -10.00 3.50 75.63 374.75 231.68 -10.00 1.00 104.26 425.09 274.10 -10.00 2.00 81.69 399.42 285.35 --

Operating Profit Margin (%) Profit Before Interest And Tax Margin (%) Gross Profit Margin (%) Cash Profit Margin (%) Adjusted Cash Margin (%) Net Profit Margin (%) Adjusted Net Profit Margin (%) Return On Capital Employed (%) Return On Net Worth (%) Adjusted Return on Net Worth (%) Return on Assets Excluding Revaluations Return on Assets Including Revaluations Return on Long Term Funds (%) Liquidity And Solvency Ratios Current Ratio Quick Ratio Debt Equity Ratio Long Term Debt Equity Ratio Debt Coverage Ratios Interest Cover Total Debt to Owners Fund Financial Charges Coverage Ratio Financial Charges Coverage Ratio Post Tax Management Efficiency Ratios

15.67 9.74 12.25 13.60 14.78 7.78 8.95 8.23 11.58 13.50 4.87

18.56 11.65 16.90 17.73 15.21 11.14 8.62 10.83 19.89 15.48 7.38

20.18 15.00 17.14 15.24 14.10 10.23 9.10 12.17 15.20 13.56 252.33

24.52 17.62 17.75 17.50 17.50 9.99 9.99 12.17 14.45 15.59 294.96

20.45 14.11 14.15 11.51 11.51 4.35 4.35 8.08 5.54 6.66 312.07

5.46 8.63

8.05 11.28

254.75 12.94

294.96 12.71

312.07 8.31

3.17 4.03 0.90 0.82

2.43 2.81 1.23 1.14

1.76 2.15 0.95 0.83

2.82 4.14 1.19 1.10

3.94 4.62 1.28 1.23

2.62 0.90 3.64 4.05

4.35 1.23 5.76 6.11

4.27 0.95 5.17 4.78

4.50 1.19 5.71 4.80

2.08 1.28 2.86 2.47

Inventory Turnover Ratio Debtors Turnover Ratio Investments Turnover Ratio Fixed Assets Turnover Ratio Total Assets Turnover Ratio Asset Turnover Ratio

6.30 10.94 6.49 3.47 0.79 0.98

5.65 6.83 5.83 2.07 0.80 1.02

6.00 6.82 6.25 1.81 0.76 1.03

6.44 6.73 6.44 1.10 0.66 1.10

5.32 5.57 5.32 1.02 0.56 1.02

Average Raw Material Holding Average Finished Goods Held Number of Days In Working Capital

87.69 18.69 293.7 1

76.52 17.48 166.06

68.44 16.55 153.21

76.52 15.71 228.73

83.60 16.13 286.78

WORKING NOTES: CURRENT RATIO =CURRENT ASSETS / CURRENT LIABILITY 2005 2006 2007 2008 2009 4449.32/885.44= 5.02 4425.46/1095.51= 4.03 5142.49/1616.44=3.18 7641.68/1444.55=5.29 8820.90/1521.48=5.79

LONG TERM DEBT EQUITY RATIO: LONG TERM DEBT EQUITY RATIO = DEBT / EQUITY 2005 2006 2007 2008 6941.90/206.53= 33.61 9075.67/220.84=41.09 10884.50/220.95=49.26 14819.39/229.30=64.62

2009

16384.51/229.41=71.42

DEBT EQUITY RATIO = SECURED LOAN + UNSECURED LOAN 2005 2006 2007 2008 2009 2776.10 + 473.47 = 3249.57 3608.39 + 1352.80 = 4961.19 3343.50 + 1916.14 = 5259.64 4401.25 + 3604.34 = 8005.59 6735.04 + 2349.51 = 9084.55

QUICK RATIO: QUICK ASSETS = CURRENT ASSSTS STOCK QUICK RATIO = QUICK ASSETS/CURRENT LIABILITY 2005 2006 2007 2008 2009 4449.32-0= 4449.32 4425.46-0=4425.46 5142.49-0=5142.49 7641.68-0=7641.68 8820.90-0=8820.90 2005 2006 2007 2008 2009 4449.32/885.44=5.02 4425.46/1095.51= 4.03 5142.49/1616.44=3.18 7641.68/1444.55=5.29 8820.90/1521.48=5.79

Proprietary ratio = Shareholder funds/Total assets 2005 2006 2007 2008 2009 206.53/6941.90=0.0297 220.84/9075.67=0.0243 220.95/10884.50=0.0202 229.30/14819.39=0.0154 229.41/16384.59=0.0140

In 2005 current ratio is 5.02 but it decreased in 2007-2008. It shows that a low ratio indicates that the enterprise may not be able to meet it current liabilities on time and inadequate working capital, but it is increasing in September 2008-2009 which shows the other hand, a high ratio indicates fund are not used efficiently and are lying ideal. It indicates poor investment policies of the management. The current ratio thus, through a good light on the short term financial position and policy of a firm.

In 2005 debt equity ratio is 3249.57, but it is increasing in September 2008-2009 which shows this ratio is sufficient to assess the soundness of long term financial position. It also indicates the extend to which the firm depend upon outsider for its existence. In other words, it portrays the proportion of total fund acquired by the firm by way of loans.

In 2005 quick ratio is 5.02, but it is decreasing in 2007-2008, it shows that the high liquidity ratio compared to current ratio may indicate under stocking while a low liquidity ratio indicates overstocking,but it is increasing September 2008-2009 which shows quickratio is considered a better measure to judge the short term financial position of the business as compared to current ratio.

In 2005 proprietary ratio is 0.0297 but it is decreasing in 2007-2008 a high ratio indicates adequate safety for creditor. But a very high ratio indicates improper mix of proprietor fund s and loan funds, which results in lower return investment it is so because on loan fund, interest is deductible as an expense and thus, the enterprise does not pay income tax thereon. As a result, it yields higher return investment. A low ratio, on the other hand , indicate inadequate low safety cover for the creditors.

CHAPTER 5: KEY LEARNINGS FROM THE COMPANY AND RECOMMENDATIONS:-

1. Performance Analysis of the Company. 2. Market share/growth rate of company. 3. SWOT Analysis of the Company. Analysis of Net Profit
EARNINGS: Videocon, July- September net profit Rs.1.6 bln, up 7% on year Videocon Industries Ltd Thursday reported net profit of Rs. 1.6 billion for Jul-Sep, up 7.14% from a year ago.In a news release, the company said its net sales in the quarter were Rs. 29.85 billion, up 14% from a year ago.Total expenditure for the quarter stood at Rs. 25.95 billion, up 14.7% from a year ago.Raw material cost expanded 17.6% to Rs. 10 billion and employee

cost stood at Rs. 499.4 million, up 47.8% from a year ago.Revenue from the consumer electronics and home appliances segment was at Rs. 27.31 billion, up 18.6% from a year ago and revenue from crude oil and natural gas segment was down 20.3% at Rs. 2.54 billion.The company said it has extended its current accounting year by three months and thus the current year will be of 15 months beginning Oct 1, 2009 and ending Dec 31, 2010.

Profit loss account

Sep ' 09 Sep ' 08 9,753.65 5,291.05 1,285.85 115.82 505.07 163.62 7,361.40 2,392.25 71.92 2,464.18 431.86 Sep ' 07 8,285.42 4,954.79 988.23 105.35 470.62 94.21 6,613.19 1,672.24 71.55 1,743.79 337.17 Sep ' 06 7,218.82 4,162.74 986.28 94.70 412.12 222.71 5,878.56 1,340.26 127.21 1,467.47 254.75 Sep ' 05 5,460.25 3,070.27 916.22 49.53 360.47 207.96 4,604.44 855.81 35.66 891.47 244.96

Income
Operating income 9,163.04 5,614.40 773.74 126.42 550.04 224.47 7,289.07 1,873.97 27.39 1,901.37 665.75

Expenses
Material consumed Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses

Sep ' 09 Depreciation 577.15 Other write offs Adjusted PBT 658.46 Tax charges 177.68 Adjusted PAT 480.78 Non recurring items -80.12 Other non cash adjustments 73.68 Reported net profit 474.34 Earnigs before appropriation 2,536.34 Equity dividend 46.25 Preference dividend 3.68 Dividend tax 8.49 Retained earnings 2,477.92

Sep ' 08 660.21 1,372.11 312.67 1,059.43 -205.14 0.72 855.01 2,306.65 22.95 3.68 4.53 2,275.49

Sep ' 07 418.39 988.23 227.68 760.55 94.67 3.54 858.76 1,696.84 80.30 3.68 14.27 1,598.59

Sep ' 06 484.00 728.72 95.16 633.56 -139.82 0.30 494.04 932.95 77.35 3.39 11.32 840.89

Sep ' 05 320.15 326.36 -166.03 492.40 -152.50 2.36 342.26 602.36 55.19 2.50 8.09 536.58

Profit and Loss account of this firm show that operating income of this firm is increasing. It was 5460.25 in Sept 2005, but on Sept 2006 it increasing to 7218.82. This increase shows the growth of this firm. On the other hand, expenses Sept 2005 is 3070.27 Rs. it was also increasing to 4162.74. But expense of this firm continuously increasing on the other hand operating income increasing in Sept 2008- 2009 by 590.62.it show that firm growing rate falling. In short we can say that firm expenditure rate is more than income rate. it shows that firm is doing strongly in the market.

Throughout the balance sheet the firm mainly source of firm money is secured loan because it is increasing continuously, it was 2776.10 on Sept 2005 but in Sept 2006 it was 3608, it means firms large amount of money arrange from secured loan. Firm is also getting fund from issuing of share capital firm future power reserve and surplus also increasing it show that increasing rate power. Balance show the financial position of the firm.

Market Share and Growth Rate of Videocon

Videocon Industries Ltd
Videocon holds 25% market share in the consumer goods market in India. It is oneof the largest CPT manufacturers globally, with operations in India, Mexico, and Italy Videocon, founded in 1985, is today one of the largest corporate groups in India. It is now venturing into power and telecom. It is one of the largest manufacturers of Colour Picture Tube (CPT)globally. It has close to 25% market share in home appliances segment in India and aims to double this business in next five years. Apart from its core businesses, the company isaiming to grow its power and telecom (handset and services) businesses aggressively through large scale investments. Market Share (%) for FY09

Videocon Industries is primarily engaged in two core businesses

y y

Manufacturing, assembly, marketing and distribution of consumer electronic products & home appliances Consumer Electronics, Home Appliances & Compressor manufacturing: Products include home entertainment systems,microwave ovens, Colour Picture Tube (CPT) & liquid crystal display (LCD) televisions, refrigerators, washing machines, airconditioners, small appliances, glass shells, compressors / motors and other components

The Company has Research & Development centres located in China, India and Japan

y y

Display industry and its components: Manufactures colour picture tubes at its facilities in Italy, Poland and China Colour Picture Tube (CPT) Glass: Operates manufacturing facilities in India and Poland

The Company, through its wholly owned subsidiaries and JVs, is engaged in exploration activities in oil & gas fieldsinBrazil, Mozambique, East Timor, Oman and Australia
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Entry into the Telecom business: In March 2010, Videocon Telecommunications Ltd, a unit of Videocon Industries Ltd, launchedmobile services based on the global system mobile (GSM) platform

Power business: Pipavav Energy, the Companys subsidiary, is implementing a thermal power project in Gujarat with a capacityof 1,200 MW; Videocon is also considering power projects in the other parts of India and evaluating alternate technologies forthe same.

Plans to set up three more thermal power generating units with a combined capacity of 4,800MW in Maharashtra,Chhattisgarh and Asansol, with a total investment of USD6.5bn

The equity shares of the Company are listed on the Bombay Stock Exchange and National Stock Exchange of India; the Global DepositoryReceipts (GDR) and Foreign Currency Convertible Bonds (FCCB) issued by the Company are listed onthe Luxembourg Stock Exchange and Singapore Exchange Trading Securities respectively

Company

SWOT ANALYSIS
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

SWOT Analysis
Strengths:
y

Technologic al skills

Leading Brands

Distribution Channels

Customer Loyalty/ Relationships

Production Qualtiy

y y

Scale Managemen t

Weaknesses:
y

Absence of important skills

Weak brands

Poor access to distribution

Low customer retention

Unreliable product/ service

Sub-scale

Managemen t

Opportunities:
y

Changing customer tastes

y
al Advances
y

Technologic

Change in government politics

Low personal taxes

Change in population age

New distribution channel

Threats:
y

Changing customer base

Closing of geographic markets

Technologic al advances

Changes in government politics

Tax increases

Change in population age

New distribution channels

CHAPTER 6: Findings FINDINGS

With strategically located manufacturing bases and an enviable distribution network of around 90 branch offices, 10,000 distributors & 400 after-sales service centers across India, VIL enjoys a unique 80% plus penetration in the market place. A high degree of backward integration ensures that VIL has most of the vital components under its control and bestows upon it unique benefits over competition uninterrupted supply, shorter turnaround time, cost advantage and quick adaptation to changing customer needs. VIL is looking to strengthen its presence through a host of big ticket acquisitions/asset buyouts Daewoo Electronics (South Korea), Chunghwa Picture Tubes (Taiwan), Pioneer (Japan) and other brown-field expansions will help VIL expand its horizons. VILs glass division, VNG, is the largest single location glass shell plant, enjoying economies of scale and a leading position in the global glass shell industry. Additionally, integration of its acquired Thomson Colour Picture Tube (CPT) plants with its Indian business would not only reduce the cost of production, but also give its glass shell units a ready market. The Thomson acquisition includes R&D centres and access to over 2,000 patents, which would enable VIL to launch new products as well as counter the threat posed by the conventional TV market being rapidly overtaken by hi-tech products in overseas markets. Increasing demand & high prices in the oil & gas industry will not only lead to improved realizations, but along with low operating costs that the Ravva oil & gas field enjoys, it can translate into a bonanza for VIL. VIL has earmarked USD 13 MM (FY07) & USD 24 MM (FY08) as capex for its oil & gas business, in order to increase the extraction from the field. It has also embarked upon Infill Well Drilling and exploration & production of three new blocks; LM-403, Back Fault Block & LO-110, all in the Ravva field. The probable reserves in the Ravva Oil field are estimated to be as high as 400 MM barrels, of which only about 160 MM barrels have been produced. Thus, a huge upside potential exists for the company. VIL is exhibiting substantial panache by fruitfully working towards bidding for and more often than not, attaining exploration and production rights in many countries around the world. It is well on its way to earning remarkable profits & achieving a prominent global standing.

CHAPTER 7: Conclusions and Suggestions CONCLUSIONS AND SUGGESTIONS

Turbulent is the word that aptly describe the scenario in CTV industry last financial year. Marketers by frequent price cuts and larger than live Marketing game plans, competition reached its new highs and lows. It is no longer sufficient to just be competitive, a company which has to survive has got to have competitive advantage. One needs to take strategic initiative in the short run to achieve the desired positioning in future. One has to foresee tomorrow. Understanding competition today involves three levels: Competition for intellectual leadership for new ideas that create new advantages. Competition for translating these ideas into product/service faster than others. Competition for market share. Do not nature any PARADIGMS because today anything is possible Search for newer markets than expanding your customer base. Come out with state of the art, feature packed affordable and competitive advantageous products. Set Benchmarks for growth. Improve up on distribution channels for viable coverage of the market. Wear out competition through trend setting, inimitable tactical moves based on our infrastructure strengths. The strategic intent should be clear down the management. Work on your strengths i.e. Infrastructure, financial base, backward integration. POP and MERCHANDISING material should be mad as per international market. CORPORATE TRAINING PROGRAMME for Development of manpower from external faculty. We have so far identified the various areas on which Videocon and other major Indian companies need to improve upon to achieve the desired level of competitiveness. Only these improvements would give Videocon and the other Indian companies base to compete with the MNCs and help the Indian companies to reduce the impact of MNCs on the Indian Market in the future. Indian manufacturers will have to react quickly because any delay in reacting to the threat posed by the MNCs would only give the MNCs time to establish themselves in the market. With their expertise and financial capacity they would be nearly impossible to compete with once they get a firm foot hold in the market. The future But the battle has only started, and the foreign companies are here for the long term. They can sustain losses for years to come in order to gain market share. What they are doing at present,

is building up distribution networks to cover every nook and corner of the country and, setting up manufacturing facilities. Only those Indian manufactures which have a strong focus on manufacturing and technological up gradation will survive in the long run, although with a much smaller market share than they have at present. Small companies will be sidelined totally and will exit from the CTV market altogether. Videocon has always been driven by its Value -for-money strategy. The company needs to identify critical success factor and work assiduously towards achieving it.

SUGGESTIONS
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 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 significantly.

BIBLOGRAPHY
http://en.wikipedia.org/wiki/Videocon http://www.videoconworld.com/ http://www.google.co.in/ www.branders.com www.viewcentral.com www.eventmarketer.com www.mobilemarketingjoblist.com

y y y y y y y