A

Project Report
On
Comparative Study Of the best practices in
Consumer Durable with reference to
SAMSUNG and BPL
IN FULFILLMENT OF
MASTER OF BUSINESS ADMINISTRATION (2009-2011)
SUBMITTED TO G.B. T.U, LUCKNOW
UNDER THE SUPERVISION OF

Mr.- MAYAK PANDEY

( Lecturer )
By:
VISHAL KUMAR GUPTA
Roll No.: 0928670049

DADRI, G.B.NAGAR (U.P.) 203207

1

DISSERTATION REPORT
ON
Comparative Study Of the best practices in
Consumer Durable with reference to
SAMSUNG and BPL

Under Guidance of:Prof. S.A. Arshad

Submitted by:Arun Egbert

Mb04093

SUBMITTED TO
HNB Garhwal University

In partial fulfillment of the requirements

For the award of the degree of

Masters of Business Administration

H.N.B. Garhwal University
Srinagar, Uttaranchal

Comparative Study Of the best practices in

Consumer Durable with reference to
SAMSUNG and BPL

ACKNOWLEDGEMENT

I take this opportunity to thank the officials at Janta Electricals and Prakash
Radios, the dealers of BPL and SAMSUNG respectively for providing me
the valuable information, which proved to be very instrumental in the course
of this project.

I am also thankful to my Project Guide Prof. S. A. Arshad, faculty at IMS,

Dehradun for providing me his guidance and, for initiating me in this
project. Without his invaluable guidance this project would not have been
accomplished successfully.

PREFACE

This is a comparative study of best practices of SAMSUNG and BPL in

consumer durables. The two organizations adopt some what same strategies
for their sales & distribution functions, but few of them are different at their
respective levels. Samsung ltd. has more diversified sales structure
comprising of various positions at various levels and various zones, whereas
BPL ltd. has only two levels based operations, one at office level and one at
C&F level.

The market share of both the companies in the different products is been
shown with the help of respective diagrams, which clearly shows that
Samsung has better market share in all products with respect to BPL.

The service structure of both the companies also differs; SAMSUNG has a
service head at HO level and various service managers zone wise, unlike
BPL which has a single line structure.

CONTENTS
TOPIC

PAGE

1. Consumer durables: a bruising battle!!

2. Color TV

8-12

3. Refrigerator

13-16

4. Washing Machine

17-21

5. Relationship management

22

6. Introduction

23

7. Research methodology

24

8. Limitations

25

9. Company Background

26-52

a. Samsung

27-36

b. BPL

37-52

10.Market share

53

11.Findings

54
Channel hierarchy

55-56
a. Samsung
b. BPL

55
56

Comparative channel hierarchy

57

Sales structure

58-59
a. Samsung

58

b. BPL

59

Sales reporting of BPL.

60

Comparative sales structure

61-62

Order processing.

63

Service Structure

64-65

a. Samsung

63

b. BPL

64

Comparison of service structure.

65-67

Consumer point of view.

68

12. Conclusions

69

13. Recommendations

70

14. Bibliography.

71

Consumer durables: a bruising battle!!

Some time ago, we heard the industry pundits say, "The consumer
durable industry is not doing as well as last year". Recently, we read
from the newspapers about October being the best sales month for
the year and that the industry is finally reviving. Well then whats it
finally? How well/bad is the industry doing? We already know that
the MNCs have encroached towards the market shares of the domestic
companies, but then not every MNC is doing great. Again, we hear
that consumer-financing schemes are doing wonders for the market
and also that the dealers have shifted their preferences towards
pushing some X, Y, Z brands.

COLOUR TELEVISIONS

10

COLOUR TELEVISIONS

After a 30% growth in the last two years, the CTV industry has seen a
slowdown this year. On account of Diwali, the month of October showed a
very high growth in sales of 6lakh units. But this is mainly because Diwali
was celebrated in November. Thus, the sales are bound to be lower than in
the corresponding period last year. On the whole, the CTV sales are
expected to be in the range of 5-5.25mn units this year.

Most Selling CTV Brands

It was noticed that most of the dealers had allocated best display positions to
Samsung and LG products. Among the most selling brands, LG lead the
rally with Samsung tugging along in the second place. The third in race was
11

Sony and BPL following behind. This is a factor to worry for the market
leader - BPL, which was the most popular brand last year. Though the
company has managed to maintain its market leadership this year, the top
line and bottom line performance has not been very encouraging. Despite the
growing sales of LG and Samsung, BPL has a huge lead over them. BPL
enjoys a market share of 12% as compared to 24% and 22% market share of
LG and Samsung respectively. Likewise, their performances will not affect
BPLs leadership in the short term. However, the long-term prospects would
be disheartening if BPL fails to plan its strategies effectively vis--vis the
strong competition. The same could be the fate of Videocon, which has
failed heavily in the area of After Sales Services.

Chart1: The most selling CTV Brand

LG
SAMSUNG
ONIDA
SONY
BPL
PANASONIC
AKAI
VIDEOCON
PHILIPS

12

Demand Analysis by CTV Size

In India, the eastern part contributes nearly 15% of the total demand. Rest is
equally distributed amongst north, south and west. Demand for a 14-inch or
a 21-inch television may vary region-wise
The 14" and the 21" CTV segment continue to dominate over the 20", 25"
and the 29" segments. They are found in the homes of all income segments
and jointly form around 55% of the CTV market. Among the 20", and the
29" category, the demand for 20" has been continuously declining and that
of 29" is steadily growing. In the replacement market, consumers are slowly
substituting their 21" TV with the 29" TV set. Ultimately, in the long run,
there will be 14, 21 and 29-inch CTVs surviving.
The dealers response during the survey further strengthens this viewpoint.
According to them, the 21" sets are the highest selling products (45% of
sales). This is followed by the sale of 14" sets (25% of sales). The rest
comprise the sale of the 20" and the 29" sets.

13

A Shift from Normal to Flat screens

As per most of the dealers, the shift in the preference for a normal screen to
a flat screen TV has been gradually increasing. While actual sales are
picking up slowly, there are a lot of inquiries coming in. Dealers also
mentioned that they are now advising their customers to purchase either a
21" or a 29" CTV.
Technology at the right price point is essential for success in the market. In
the long run there will be brand equalization in a mature market. Still,
differentiation will be existing depending on convenience, special
technology or some other features.

14

REFRIGERATORS

15

REFRIGERATORS

The refrigerator market in India has been growing at a rate of 11.75% over
the last four years. The sale of refrigerators increased from 2.15mn units in
FY01 to 3mn units in FY05.

Most Selling Refrigerator Brands

The direct cool segment makes the most of the refrigerator market.
However, we are witnessing a change in the consumer preferences towards

16

frost-free refrigerators. In the years to come, the gap between the shares of
direct cool v/s frost-free refrigerators will diminish. This is also evident from
the fact that most of the new capacities that are being installed are in the
frost-free segment.

Chart2: The most selling Refrigerator Brand

MOST SELLING REFRIGERATOR

BRAND
WHIRLPOOL
8%

4%
36%

14%
17%

SAMSUNG
LG
GODREJ

21%

BPL
ELECTROLUX

Whirlpool has been a clear winner as the highest selling brand with about
36% of the respondents supporting it. The company has taken a clear lead
over the others by concentrating on aggressive marketing, promotional
activities and vastly improved brand image. LG and Samsung are fast
gaining popularity as they together account for 40% of the response. These

17

two Korean MNCs are concentrating on the >300ltrs Frost-Free segment.

They have almost swept the entire market in this segment. Based on the
chart above, Electrolux is not a very popular brand in Mumbai. This may be
due to the fact that the Mumbai consumers are shifting their preference for
frost-free type of refrigerators with larger capacities. LG and Samsung who
are largely concentrating on this segment have very well leveraged this shift.
The refrigerator market in India has been dominated by the 165ltrs capacity.
However, in the last 2-3 years there has been increasing demand for 200ltrs
& above capacity. Presently, about 60% of the capacity is in the 165ltrs
segment. The new capacities being installed (especially by the MNCs) are
in the 220ltrs & above segment.
The increasing competition in all segments of the refrigerator market has
resulted in lower margins for both the manufacturers and the dealers. The
market for refrigerators is expected to grow but at the same time the capacity
is also expected to grow with LG, and Samsung setting up their plants.

18

WASHING MACHINES

19

WASHING MACHINES

Washing machines in India are divided into two broad segments semiautomatic and fully automatic. The semi-automatic machines form around
75-80% of the total washing machines market. The fully automatic machine
was not very popular mainly in the earlier years due to the high price
differential between the two. In addition to this, just as we saw above, the
washing machine per se, is not as popular as a television or a refrigerator.
Thus, most of the buyers have preferred to make smaller investments in this
product category. However, with the washing machine becoming a widely

20

accepted consumer durable and the price of the fully automatic machines
being slashed, the demand for fully automatic machines is slowly picking
up. Moreover, the replacement buyers who already have a semi-automatic
washing machines, are the ones who prefer the fully automatic washing
machine.
Most of the dealers interviewed, witnessed an increasing preference towards
fully automatic washing machines. It is estimated that by mid-2006 the share
of fully automatic machines will be 70%.
There are two models of washing machines front loading and top loading.
Top loading is preferred by most due to the reasons of convenience and
safety. Front loading model has not picked up at all in India.

Most Selling Washing Machine Brands

The market for washing machines in India has been growing at a
significantly slow rate. Until 1998 Videocon was the market leader with
about 50% of the total market share. However, with the entry of Whirlpool,
LG & Samsung the competition scenario has changed. Market share of
Videocon tumbled to 25% while Whirlpool grew at a healthy rate to attain a
share of 21.7% during FY05.

21

Chart3: The most selling Washing Machine Brand

WHIRPOOL
SAMSUNG
VIDEOCON
GODREJ
BPL
LG
IFB

Whirlpool is preferred by 34% of the dealers as the most selling brand,

which is way ahead of the others. This trend completely reflects the
expected market share for the various companies at the end of the current
year. Whirlpool and Samsung have out done the other players in the
washing machine market.
Overall, the market for washing machines is expected to grow faster in the
coming years with prices coming down and a variety of models being

22

offered to the consumers. Consequently, there are many new entrants in this
sector.
Whirlpool is the market leader in the refrigerators and is all set to lead in the
washing machines sector as well. However, it will face tough competition
from LG and Samsung, who are also growing at a healthy pace. Domestic
companies like Videocon, BPL and Godrej are steadily losing popularity
and will have to come up with new products and smart marketing techniques
if they are to regain their market share.
Besides taking a first hand knowledge on the performances of the various
brands, I found some interesting facts about the importance given to the
After Sales Services aspect by companies.

23

After Sales Service

The dealers have observed that the customers add a lot of value to the after
sales service provided by the company while making a purchase decision.
Customer Relationship Management is assuming more and more importance
these days and companies cannot afford to ignore this. Based on the above
response, Whirlpool and Samsung, provide better customer services as
compared to others.

Chart4: The growing importance of Relationship

Management

24

GROWING IMPORTANCE OF
RELATIONSHIP MANAGEMENT
WHIRLPOOL
10%

8%

30%

SAMSUNG
LG

11%

GODREJ
12%

29%

BPL
VIDEOCON

INTRODUCTION
The main objective of the research is to do a comparative study of two
CONSUMER DURABLE COMPANIES SAMSUNG and BPL with
respect to their sales and distribution functions. The dimensions of
discussion during this whole project are:
CHANNEL HIERARCHY.
SALES STRUCTURE.
ORDER PROCESSING.
SERVICE STRUCTURE.

25

 CONSUMER POINT OF VIEW.

On the basis of above information about two organizations- Samsung and
BPL, the sales structure of the two is studied and a comparative analysis is
done.

RESEARCH METHODOLOGY

The data was collected from both primary as well as secondary sources.
Primary sources being the Interviews with the dealers at the respective
showrooms of Samsung and BPL

Secondary sources of information were internet, journals and articles about

the organizations.

26

LIMITATIONS

The limitations faced during the project were:-

Time constraint (such an arduous project requires more time).

Very difficult to get hold of the sales team as they are mostly in the
field.

Errors of an informal interview.

Dealers were hesitant in answering some of the questions.

27

COMPANY BACKGROUND

28

SAMSUNG

VISION
Samsung India's Vision entails helping people improve the quality of
their lives by providing them with superior quality, state-of-the-art
technology products at the right time and the right price. But beyond its
role as a purveyor of quality products in India, Samsung seeks to
contribute to the economic growth of the country though its export
commitments and large scale production facilities generating secured
employment for hundreds of Indian people.

29

SAMSUNG IN INDIA
Digital technology leader, Samsung India Electronics Ltd., a subsidiary of
the US$ 56 Billion Samsung Electronics Co. Ltd., has been operating in
India since 1995. It is a leading provider of high tech Consumer Electronics,
Home Appliance, IT and Telecom Products in the country.

In its tenure of over 11 years in the country, Samsung India has set up
manufacturing facilities for Color televisions, Microwave Ovens, Washing
machines,

Air

conditioners,

Color

Monitors

and

more

recently,

Refrigerators, in the country. All the facilities are located at its

Manufacturing Complex at Noida, Uttar Pradesh. The Company set up a
Software Technology Park for Digital Visual Display Products at Noida in
the Year 2002.
In the Year 2004, Samsung India had been made the Regional Headquarters
for Samsung operations in South West Asia.
Samsung Electronics Co. Ltd. is a global leader in semiconductor,
telecommunication,

and

digital

convergence

technology.

Samsung

30

Electronics employs approximately 75,000 people in 87 offices in 45

countries. The company is the world's largest producer of memory chips,
TFT-LCDs, CDMA mobile phones, monitors and VCRs. Samsung
Electronics consists of five main business units: Digital Media Business,
Telecommunication Network Business, Digital Appliance Business,
Semiconductor Business and LCD Business.

PERFORMANCE
In a span of ten years since its entry into the Indian market in December '95,
Samsung India today is recognized as a leading provider of high tech
Consumer Electronics and Home Appliance Products in the country. It has a
market share 11% in the highly competitive color television market in India
and holds the No.2 Position in the Flat Screen Television category. It holds
significant market shares in the Frost free refrigerators, washing machines
and Air-conditioned categories, while holding the No. 2 Slot in
MicrowaveOvens.

31

PRODUCT MIX OF SAMSUNG

TABLE-1

MOBILE

TV,

VIDEO INFORMATION HOME APPLIANCES

PHONES

& AUDIO

TECHNOLOGY
PRODUCTS

GSM
CDMA

TV
HOME

NOTE PC
CD/DVD ROM

THEATRE
AUDIO

MONITOR

REFERIGERATOR
AIR CONDITIONER

AND MICROWAVE OWEN

DISPLAY
DVD PLAYER

SOLUTIONS
LASER PRINTERS WASHING MACHINE
& LASER BASED
MULTI FUNCTION

CAMCORDER

PRODUCTS
FAX
HARD
DISK
DRIVE

32

SAMSUNGS SALES TURNOVER

Digital technology leader, Samsung India Electronics Ltd. has targeted sales
of Rs.3200 Crores for its Consumer Electronics and Home Appliances
business in the Year 2005. The Company achieved a Sales Turnover of
Rs.2700 Crores in the Year 2004. The Consumer Electronics Business grew
by 29% while the Home Appliances business grew by 21% in the Year
2004.

In the Year 2004, Samsung India sold 1.2 million color televisions, thereby
achieving a growth of 43 % over its previous year (Y 2003) sales of 7.0 lac
units. 8.5 lac CTVs were sold in the Domestic Market in the Y2003 while
33

1.5 lac units were exported. Samsung sold 100, 000 Flat TVs, with the
contribution of Flat TVs standing at 12% off the total CTV Volumes sold in
the Year. The Company hopes to increase its Color television market share
to 20% by the end of the Year 2006.

SAMSUNGS MARKET SHARE

Sony has given way to Samsung as the number one flat TV brand in the
overall color television market this March, as per latest data released by the
market research agency ORG.
While Samsung has emerged the clear leader in flat screen CTVs in March,
with a whopping 27 per cent share of the market, against Sony's 20.1 per
cent,

34

NEW SAMSUNG PHILOSOPHY AND SPIRIT

The Samsung Philosophy
We will devote our Human Resources and technology to create Superior
product and services, there by contributing to a better global society.

The Samsung Spirit

To be actively involved with our customer

To recognize and confront global challenges

To create a better future for all

STRATEGY FOLLOWED
Samsung Electronics is implementing business restructuring concepts
and process is called New Management. The ultimate goal of the New
Management is to make Samsung the undisputed world leader in the field
of electronics.
The new management Philosophy adopted in June, 1993, comprises three
major guiding principles which will become the foundation for Samsung's
international competitiveness, they are:

35

 Quality Management
Multifaceted integration and
Globalization

QUALITY MANAGEMENT: At Samsung quality is seen as

something one creates, the result of a process whose beginning is rooted
in the will to change - but which has no end. That is why over 2,00,000
people who make up Samsung in 65 countries have come together for
declaration of product quality.

However, quality cannot be dictated from above, but must be a shared value,
part of the company's culture. Samsung chairman Lee Kun-Hee calls this
reform from below. As Samsung evolves from a quantity to a quality
manufacturer, this sense of personal responsibility is expressed by the
Samsung employees through a simple statement, Quality begins with me.
Dedicating to staying ahead, great pride is taken at Samsung in designing
products that create their own markets. Customer service is regarded by
Samsung not as an adjunct to product quality but intrinsic. Perhaps nothing
underscores the move from quantity to quality more simply that the early

36

start, early finish program at Samsung. Samsung employees know their

first responsibility is to protect the company's investment in quality.

MULTIFACETED INTEGRATION : By combining and building

upon the capabilities of other members of the Samsung group, Samsung
believes that unique products can be brought to the market more quickly and
efficiently without depending on outside supplies. It believes that efficiency,
quality and profitability can be maximized by working continually to
integrate every facet of business.
The company's commitment to multifaceted integration is that the Samsung
conglomerate itself is now being shaped into a highly focused group.
Through mergers and divestures, Samsung's 50 affiliates and subsidiaries
have been reduces to 28 and further reduced to 24 when restructuring is
complete. These have been reorganized into 4 key groups - Electronics,
Chemicals, Finance and Insurance.
Along with integrating Samsung products, the company plans to integrate
Samsung's internal services for greater competitive advantage. Samsung
expects to beat competitors with better quality products globally, by
integrating design, production, marketing and service facilities.

37

Multifaceted integration will become the new world standard of corporate

excellence.

MARKETING TECHNIQUES
The company adopts the latest marketing techniques in the world and
message to the consumer is that they are getting their moneys worth i.e. the
value for the money spent on Samsung products. These superior marketing
techniques give Samsung an edge over its competitors.

AFTER SALES SERVICES

With a wide network of sales all over the country it is imperative on the part
of the company to have an efficient after sales service network which it has.
The companys statement on this is that in Samsung a customer may never
need it. It has a wide network of after sales with 77 Samsung service centers
spread across the country.

38

BPL

VISION & MISSION

Our objective is to deliver superior value to investors and customers
over the long-term. Our focus is on making BPL Future-Ready for the
new millennium and to transform it completely into a customer oriented
company. The challenge is to develop a culture where everything we do,
is aimed at strengthening our bonds with our customers.
"BPL is committed to achieve a leadership position
in all its groups through utilization of the best and most appropriate
technologies, applying the finest manufacturing disciplines and most
efficiently marketing high quality products and services to consistently
give its customers the best value for their money."

39

BPL IN INDIA
BPL's history is inspiring, where in a span of 42 years; it has grown from a
single product company to a multi-category, multi-product conglomerate,
spanning 7 product areas and over 230 products and services.
In 1963, our Founder and Group Chairman TPG Nambiar began
manufacturing hermetically sealed precision panel meters in
Palakkad, Kerala, under the name of British Physical Laboratories.
Having worked in UK and USA, when he came back to India armed
with a vision of pioneering the manufacture of superior quality
electronic products, he dreamed of making BPL a household name.
Over the years, BPL's growth has been subject to constant
challenges. The company was started at a time when the government
had reserved many areas of business for the public sector. It had also
virtually barred most entrepreneurs from entering other fields
through reservations on licensing.
From 1980 onwards, when the industrial licensing was relaxed, BPL
began

manufacturing

televisions

and

telecom

equipment,

demonstrating its potential and future business area. In the early

1990s, after globalization and liberalization of the Indian economy,

40

competition entered the market. BPL retained its strong presence and
growth rate. Strategic alliances with international companies
provided the technology for us and set the standards of quality.
Using its experience of the market and the consumer, we
concentrated on importing technology, improving product quality,
innovations and manufacture of electronic products that enhanced
the quality of life. After 42 years, BPL has metamorphosed from an
entrepreneurial venture, into India's biggest consumer electronics
company.

BPLs Guiding Principles

Our motto "Believe in the Best", is guided by 5 principles that aim to
accomplish a singular goal: quality.
At BPL, we are dedicated to meeting consumer expectations on one hand,
and making quality a priority on the other. This we believe is what makes us
worthy to the millions of consumers who look up to us.

41

 To ensure customer confidence through product quality, efficient

marketing and effective service.
To continually enhance the Company's worth to its shareholders and
investors through sound investments and profitable operations.
To demonstrate a real concern for its employees and to constantly
improve the quality and value of their jobs and career advancement.
To be a good corporate citizen who contributes positively to its
community by protecting the environment and working for public
welfare.
To respect the laws, rules and customs of the land and to ensure the
conduct of all company activities will always be to the highest ethical
standards

42

PRODUCT MIX OF BPL

TABLE 2

HOME

HOME

DIGITAL

SOFTWARE

ENTERTAINMENT APPLIANCE

BPL

ENERGY

COLOUR T.V.

MOBILE

BATTERIES

REFRIGERATORS

PHONES
B&W T.V.

WASHING

DVD

MACHINES

PORTABLE
LIGHTS

HOME THEATRE

COOKING RANGE

DIGICOLOUR

AUDIO%VIDEO

MICROWAVE

DIGITAL

SYSTEM

OWENS

CAMERA

LOEWE T.V.

VACCUM

DIGITAL

CLEANERS

VIDEO

43

COOKING RANGES

VACCUM CLEANERS

GAS TABLES

AUDIO SYSTEMS

REFRIGERATORS

DVD PLAYERS

VIDEO SYSTEMS

BPLS SALES TURNOVER

Giving the break-up of the Rs 2,150 crore revenue, Rs 1,500 crore accounted
for entertainment electronics, Rs 400 crore for appliances, Rs 100 crore for
exports, Rs 105 crore for soft energy and the remaining for others in BPL. In
India the figure of selling BPL TVs were only 5.3 million, which, should
touch 25 million.

BPLS MARKET SHARE

44

BPL has emerged on fifth place in flat screen CTVs in March, with only 6.8
per cent share of the market. Videocon was placed fourth with 9.1 per cent
share of the market, Philips, Thomson, Oscar, Sony and Panasonic followed
with 4.5 per cent, 2.1 per cent, two per cent, 1.9 per cent and 1.1 per cent
market shares respectively.

BPL -CORE COMPETENCIES

DEVELOP

STRONG

BRAND

THROUGH

MARKETING
Maintaining high share of mind and brand preference through careful
marketing and communications.
Providing cutting-edge technology sheen to the brand to battle
MNCs.
Connecting with varied and changing consumers especially women
and youth.
Adding greater style, flair, excitement and vibrancy across the Total
Brand Experience.
Strengthening the conversion from mind share to market share
through strong retail visibility and Bazaar Power.
45

 Creating high brand involvement through the sponsorship of movies,

music and sport.
Evolving a coherent brand Architecture for greater focus,
consistency and resource optimization in Band Marketing efforts.

STRATEGIES FOLLOWED
REDUCTION IN PRICE OF ALL MODELS
With regard to the domestic market, there was a reduction in the prices of all
models. BPL responded to this scenario with a carefully devised game plan
that matched its brand position: strong product introductions through the
year helped us increase market presence and fuel growth in all businesses
INCREASE MARKET SHARE IN THE PREMIUM SEGMENT
In the premium segment BPL will be looking at providing a range of highend Digital TVs, Flat Screen TVs, among others, as well as bundling valueads and wrapping several benefits around Large Screen Range (29). This
would include stand-alone television models as well as advanced Home in
both Systems. All products will incorporate enhanced performance features
in both picture and sound. The focus here will be on experience and
impact in home entertainment. So, while in the popular segment the focus

46

is on Quality Home Entertainment, in the premium segment it is on

providing an Exclusive Entertainment Experience.
BPL recognizes the potential of customer care in gaining a significant
competitive advantage in the market place. BPL is viewing customer service
as a marketing strategy and not as after sales service. Front line employees
are the most important in this regard the sales person, the receptionist or the
PRA in the regional offices, the service engineer taking an urgent call for
help from a customer. It is their knowledge, their behavior that will
influence customers to return to us for their next purchase. BPL will give
these people the knowledge and tools to do this job and do it well.
PROMOTE BPL AS A CORPORATE BRAND
The overall strategy of promoting BPL as a corporate brand, as well as
individual product brands, has helped BPL drive tremendous synergies and
resources optimization. The equity of the corporate brand rubs off on the
individual products and vice-versa.
Moreover, this brand architecture helps in various facets and products
connecting with varied consumer types to provide a multi-layed brand
experience.

47

 MASS PENETRATION
BPL caters to the need of the masses. Since BPL straddles a wide range of
products, price points, consumer types and markets, it is important that the
brand works at many levels and provides products that suit the mass publics
pockets.
The BPL brand positioning is like the proverbial Proteus (the multi-headed
character from Greek mythology): multi-faceted and multi-layered, yet
coherent.
Expansion:

By consolidating with various companies, BPL has now finally expanded

into consumer durable products like CTVS, vacuum cleaners, white
goods, TV components etc.
HIGH QUALITY PRODUCTS/ QUALITY UPGRADATION
With the commencement of production of CTV from new units, the
emphasis on quality has gained additional significance. To maintain the high
standard of quality and excellence, BPL deputed teams from Q & assurance
For future quality initiative BPL has designed a FMEA along with ISI to
train personnel on the failure modes, causes and effects.

48

The main emphasis of BPL thus has been on Quality up gradation and
producing products with high quality.
ZERO DEFECT CONCEPT
The concept of zero defects there has been a sea change in attitude over the
years: an increasing number of manufacturers insist that no defects can be
tolerated in the product or the process; the job has to be done right the very
first time. Re-works are out. This quality philosophy has given technology
evolution its cutting-edge effectiveness.
Technological up gradation
Adding value through technology pillars like the Quadra Point Focus (QPF)
for enhancing viewing pleasure and performance features across the popular
20 and 21 range for the mass market. The focus will be on a better pricevalue and high quality, rather than cutting prices and compromising on
quality as indulged by many brands.

Ethical Values (Culture)

49

 The culture of BPL is very informal and homely. Each and every
employee of BPL is treated as a member of the BPL family. Al the
people work in close collaboration with each pother and try tapping
each other potentials for the success of BPL.
Two way communication in BPL: there is a two way communication
in BPL. The communication takes place both from top to bottom and
from bottom to top.
Personal bond is very strong in BPL that nobody likes to leave the
organization because of this reason. The people approach each other
and the heads with their personnel problems.
It treats its employees with regard and consideration.
No hire and fire culture. This keeps the large number of employees
motivated and loyal to the company.

50

HOW BPL FACES TODAYS COMPETITIVE ENVIRON

MENT
HEAVY EXPENDITURE ON RESEACH AND DEVELOPMENT
The following are the specific areas in which R & D is carried out along
with their respective objectives:
The companys R & D activities began in 1974 and have since been
recognized by the Government of India. BL plays a key role in strengthening
its industry leadership R & D activities have been focused at delivering a
better value for money to the end customer by way of
Innovation,
Product improvements,
Reducing cycle time and operating costs,
Latest technology and getting products faster t the market,
Reducing cycle time.
PRODUCT INNOVATION
The introduction of CTV cabinets in attractiveness colors and improved
styling.
51

 The introduction of cutting-edge technology products like the 100 per

cent flat, Plasma TV and Projection TV in the premium category.
CUSTOMER FOCUS
An increased focus on the rural markets with the introduction of valuefor money products.
BPLs new regional management structure is moving decision making
closer to the respective markets, so that the company can respond faster
and more efficiently to the market needs.
Localizing BPLs manufacturing operations in high growth markets.
Continuing to grow in the replacement and up gradation markets.
Introducing attractive dealer management programmes.
CUSTOMER CARE
Customer care is amongst the top priorities for BPL. The customer care for
BPL CTVs is provided for by a group company called BPL Engineering
Ltd., with the objective of ensuring that BPL attains the most customer
oriented company status.

52

DISTRIBUTION
THE BPL network continues to be the strongest in the country. The strength
of BPLs distribution network lies in:
The strongest retail network in the country with 52 galleries, 240
exclusive showrooms and 229 service centers.
A 7,000 strong retail distribution network.
BPL sells over three million products (excluding batteries) across the
country.
BPL contributors more to a dealers business than any other brand in the country

SECRET THAT KEEP THE COMPANY IN LIME LIGHT

Quality Image: the good quality image of BPL has helped in the wide
success. The products of BPL have always been perceived as good in
quality and this is because of the strong Brand name that BPL holds
for its products.
Backward integration of products: one of the reasons for the
immense success of BPL is the backward integration that it has done
with the other companies for the component parts of the CTVS. For
example In 1996 company took risk of taking up a sick company

53

called Uptron in Saibabad for manufacturing of coloured

picture tubes, in this they did backward integration

54

MARKET SHARE

MARKET SHARE
SAMSUNG
9.1

BPL

17.1

VIDEOCON
SONY

22.2

6.8
6.9

PANASONIC
OSCAR
THOMSON
PHILIPS

8.2
5.52.1
2
1.1

19.5

ONIDA
L.G.
SANSUI

55

FINDINGS

56

SAMSUNG CHANNEL HIERARCHY

COMPANY

DISTRIBUTOR

WAREHOUSE

STOCK
CLEARANCE
SALE, SECOND
SALE.

RETAILLER
(MULTIBRAND)

DIGITAL
HOMES AND
DIGITAL
PLAZAS

CUSTOMER

57

BPL CHANNEL HIERARCHY

DIRECT
DEALERS
(BPL
GALLERY)

COMPANY

C&F
AGENTS
SUB-DEALERS

DISTRIBUTOR

RETAILERS
(MULTIBRAND
SHOWROOM)

C
L
E
A
R
A
N
C
E
S
A
L
E

CUSTOMERS

58

COMPARATIVE CHANNEL HIERARCHY OF

SAMSUNG AND BPL

In Samsung there is warehouse, distributor and retailer, where distributor

and retailer have the direct contact with the customer. Retailer through retail
outlets, and distributor through clearance and second sales.

Whereas in BPL there is C & F agents, direct

dealers (BPL gallery), distributors, sub-dealers and retailers. In BPL direct
dealers, sub-dealers and retailers have the direct contact with the customer
through retail selling, where C & F and distributors comes in contact
through stock clearance and second sale.

59

SAMSUNGS SALES STRUCTURE

MANAGING DIRECTOR

DIRECTOR
SALES

DIRECTOR
MARKETING

V.P
SALES

T.V.

V.P
MARKETING

COUNTRY MANAGERS

MICRO
WAVE

REFRIGE
RATOR

AREA
GENERAL
MANAGER

COMPU
TER

WASHING
MACHINE

DEPUTY
GENERAL
MANAGER

PHONES

SENIOR
GENERAL
MANAGER

BRANCH LEVEL
AREA SALES MANAGER
(ZONES AND AREAS
ARE DEFINED)
SR. SALES
EXECUTIVE

SALES
EXECUTIVE

BPL SALES STRUCTURE

60

OFFICE
LEVEL

REGIONAL
INCHARGE
SALES

C & F LEVEL

REGIONAL
INCHARGE
SERVICE

REGIONAL
INCHARGE
COMMERCIAL

ASST.
MANAGER
DISTRIBUTOR

DIRECT
DEALER

AREA SALES
MANAGER
SUB-DEALERS
SALES
EXECUTIVE

SALES REPORTING OF BPL

61

CMD

CEO

REGIONAL
INCHARGE

AREA
GENERAL
MANAGER

ASM

SALES
EXECUTIVE

COMPARATIVE SALES STRUCTURE OF

62

BPL AND SAMSUNG

SAMSUNG

In Samsung there are director sales and director marketing under them there
are respective vice presidents sales and marketing and under VPs there are
respective country managers according to product specification for example
there are different country managers for different products like TVs,
REFRIGERATOR, MICROWAVE etc. and under these country managers
their are various branches which are defined as area wise and under these
branches there are area general manager deputy manager and senior
manager. Area general managers have area sales managers, senior sales
executives and sales executives as under respectively and these ASMs and
sales executives are assigned with different territories and zones given by the
senior manager at branch level.

BPL

63

In BPL the sales functions are at two levels i.e. at OFFICE level and C&F
level. At office level there are various regions defined by the head office and
mainly three types of functions are performed at regional levels that are
sales, service, and commercial. At regional level there are regional in
charges which has to perform all these functions, under regional in charge
there are manager sales and area sales managers and sales executives
respectively.
And at C & F level, there are distributors,
direct dealers & under distributors there are sub dealers. Distributors and
direct dealers are assigned with defined territories and targets which are
given by regional office and head offices.

ORDER PROCESSING
SAMSUNG

64

Generally orders are being processed on its own by evaluating the

stock Reports Company pushes its inventory to the channel

members by target setting. In case there is some surplus stock
which the distributor is not able to sell in one month then he has
to prepare a return report or a clearance sale has to be organized
distributor places the order directly to branch office or it can
place the order to sales team also. Frequency of order is generally
are on monthly basis. It can also once or twice a week or a month
according to the demand.

BPL

In BPL firstly distributor places the order at closing of every

month that is 31st through branch office; sales team also can place
the order in way of setting targets for distributors or dealers and
push the inventory to the channel members after evaluating the
growth.

SERVICE STRUCTURE OF SAMSUNG

SERVICE MANAGER
(HEAD OFFICE)
65

NORTH
ZONE
SERVICE
MANAGER

SOUTH
ZONE
SERVICE
MANAGER

EAST
ZONE
SERVICE
MANAGER

WEST
ZONE
SERVICE
MANAGER

AREA WISE BRANCH SERVICE MANAGERS

SERVICE
MANAGERS

SERVICE
EXECUTIVES

SERVICE CENTER

MANAGED BY
THIRD PARTY.

SECURITY DEPOSIT
ARE TAKEN BY
COMPANY.

SERVICE STRUCTURE OF BPL

SERVICE
MANAGER
(HEAD OFFICE)

66

REGIONAL
SERVICE
MANAGERS

ASSISTANT
SERVICE
MANAGERS

SERVICE
FRANCHISEES

COMPARISON OF SERVICE STRUCTURE

In case of Samsung its products are catching up to the market share it has
a very complex service structure, there are various service managers zone
wise under them there are various branch service managers area wise,
67

under branch service managers and service executives which manage

company owned service centers, under them there are service centers
which are managed by third party and all the financial terms are
remuneration based and security deposits are taken just like terms with
distributors. These third party and company service centers are provided
with a toll free number through which a customer can register his
complaint.
In case of BPL there is a service
manager at head office level under whom there are regional service
managers zone wise and area wise and under them their assistant service
managers and under them there are service franchisees, which are
managed by third parties.
* In the case of Samsung there are 85 company owned service centers,
there are third party service centers situated in every major city and
capital of the state according to the company policy,

*In case of BPL there are 47 company owned service centers and third
parties owned service center situated in major cities.

68

CONSUMER POINT OF VIEW

As the customer feels that the availability of BPL is somehow restricted to
multi brand show rooms only because of the fact the exclusive BPL
GALLRIES are not conveniently situated as compared to SAMSUNG
69

whose products are easily available at multi brand showrooms and its
exclusive

showrooms

like DIGITAL HOMES

and PLAZAS

are

conveniently located.
From the consumers it has been observed that most
of the consumers did or presently owning any of the BPL products, but at
present if they would have a choice to buy a new product consumer would
prefer to buy from SAMSUNG.
Consumer does think that SAMSUNG has the better technology than BPL.
Customer also rates the after sales services of SAMSUNG higher than BPL.
Overall consumer perception is that SAMSUNG is a better market player
than BPL.

CONCLUSION

70

The conclusion that I draw from my study is that SAMSUNG ltd. has at
present a better sales & distribution network and servicing network than that
of BPL ltd.

Over the years BPL ltd. has not been able to hold its position in the
market. At present its market share is less than that of its other competitors
and so SAMSUNG ltd. has a greater market share than BPL ltd. and its
feared that it might even fall down if the current scenario of BPL ltd.
continues.

RECOMMENDATIONS

71

BPL ltd. should cut down its expenses on insurance as it insures the
product even after the 48 hours of delivery to the customer, it should opt
system of insurance like Samsung which insures its goods only till
delivery to warehouse and further responsibility is of 3rd party.
BPL should also concentrate on to the availability aspect of its
products because consumer feels that its products availability is only
restricted to multi brand showrooms BPL GALLRIES are not
conveniently located.
BPL should also concentrate on to improve its technology.

BIBLIOGRAPHY

People at showrooms of Samsung & BPL.

72

 Philip Kotler marketing management.

Websites :a. www.bplworld.com.
b. www.samsungindia.com
c. www.google.com.

73