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Anil Saini 

Gaurav Mahajan
Amande e p  
Singh
Sanc hit Jain

Experience change
index
ØIntro duc tio n  to  vide o c o n
Ø
ØWhe re  Are  We  No w?
Ø
ØWhe re  We  Want To  Be ?
Ø
ØHo w Will We   Ge t The re ?
Ø
ØCo nc lusio n
ØAN INTRODUCTION
VIDEOCON AT A GLANCE
Videocon ….at a glance
Ø Founder : Late Nandlal Madhval Dhoot
ØFounder : Late Nandlal Madhval Dhoot
Ø
Ø
ØØ Videocon is an Indian multinational company with
Videocon is an Indian multinational company with interests in 
interests in Consumer Electronics, Home
Consumer Electronics,  Home  Appliances , and Colour Picture 
Appliances , and Colour Picture Tube Glass.
Tube Glass.
Ø
ØØ In 1987, it used to manufacture TV and Washing
ØIn 1987, it used to manufacture TV and Washing Machine.
Machine.
ØØ
ØØIn 1989­90, Videocon started manufacturing Home 
In 1989-90, Videocon started manufacturing Home
Entertainment Systems,Electric Motors & AC.
Entertainment Systems,Electric Motors & AC.
ØØ
ØØ Videocon entered Refrigerators and coolerssegment in
Videocon entered Refrigerators and coolers segment in 1991.
1991.
Ø
ØØIn 1995, Videocon started manufacturing Glass
Ø In 1995, Videocon started manufacturing Glass
shells for CRT 
shells for CRT
CONTD…
CONTD…
 In 1996 it ventured into Kitchen appliances .
 In 1998, Videocon started manufacturing
ØIn 1996 it ventured into Kitchen appliances . 
Ø Compressors & Compressor Motors.
ØIn the year 2000, Videocon tookover Philips
In 1998, Videocon started manufacturing Compressors & 
Color TV Plant.
Compressor Motors. 
ØIn 2005, Videocon tookover 3 plants of
ØIn the year 2000, Videocon tookover Philips Color TV 
Electrolux India and acquired Thomson CPT.
Plant.
 Today, it has evolved into a giant
Ø
conglomerate with annual revenues of over
ØIn 2005, Videocon tookover 3 plants of Electrolux India 
U$4.1 billion.
and acquired Thomson CPT. 
Ø
ØToday, it has evolved into a giant conglomerate with 
annual revenues of overU$4.1 billion
SSTEP 1

ØWHERE ARE
WE NOW ?
CONSUMER  DURABLES  
MARKET

5%
3% LG
6% Samsung
13% 1% Videocon Group

2% Mirc Group
BPL
2%
22% Sony
12% Phillps
Panasonic
Sharp
15% 19% Thomsan
Others
Television 

Videocon has a good foot hold in the CCTV 
segment. 
WASHING MACHINE

Videocon has a good strength in washing 
machine sector
REFRIGRATORS

Videocon needs to capture  a large area or segment 
in refrigrator sector
STRATEGIC BUSINESS UNIT
Ø An SBU in a strategic management sense, is an
entire division in large corporations that carries
out certain business. This approach entails the
creation of SBU to address each market in which
company is operating.
Ø
Ø Videocon is operating in following products.

Consumer Electronics Home Appliances


Televisions Refrigerators
VCD players Washing Machines
Mobile Phones Microwave Ovens
Audio Systems Air Conditioners
LCDs , LEDs
Factors affecting company
marketing strategy

ØExternal factors
  CONTEXT ­PEST ANALYSIS

Political Factors

ØLabour unions effects a lot the


production
ØResolution to reduce emission of carbon
footprints in the atmosphere
ØAnti-dumping duty on imported color
picture tubes.
ü
P EST Analysis
Economic Factors

Ø Growth of retail sector – expected to reach 16%


by 2011-12 from 4% in FY07
Ø Availability of finance.
Ø High investments are needed in the consumer
durables.
Ø Economic reforms by the government –higher
purchasing power
Ø Emergence of organized retail market with large
players like Croma, next, reliance digital etc –
leading to lower prices and higher varieties
61 % of total urban income comes from
households —earning between US$ 1,493
and US$ 9,955 a year.
PE ST Analysis
Social Factors

Ø Disposable Income roughly doubled since


1985.
Ø Changing perception of luxury to necessity.
Ø In rural areas there is poor infrastructural
facilities like availability of electricity.
Ø Demand of the consumer durables is seasonal
and cyclic.
Ø Highly growing consumer durable market.


Porter’s Five Force Model

Rivalry and competition: High
Power of suppliers: moderate to low

 Porters Five
eat from new entrants: moderate Force Threat from substitute products/service

High to moderate; depends on the produc

Power of buyers: high
PES T Analysis
Technological Factors

Ø Improved electricity consumption.


Ø Higher quality products.
Ø Technological is changing at a very fast rate.


MICRO  ANALYSIS
vThreat to Entry
Ø   Entering market isn’t very easy. One of the most
important features needed is a good distribution system
which isn’t something that can be developed overnight.

Ø 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.
v  Rivalry among existing firms
Ø
 
Ø­ There is strong competition among the current players. The main 
players are LG, Samsung, Onida, Videocon, Philips, Sansui.

ØThis increased competition has ensured that advertising costs are an 
integral part of the players’ total cost. 
Ø
ØIt is expected that realizations will fall with increased competition.
CONTD..
vBargaining Power of Buyers
v
ØThe TV market today is a consumer’s market where the 
consumer has the upper hand with him having the power of 
choosing from a variety if brands.
Ø
ØThis bargaining power of the buyer has forced the players to offer 
credit facilities on sale, to provide lower EMIs and excellent after­
sales service.
Ø
ØThe intense dealer competition also benefits the consumer in 
terms of prices and offers available.
vThreat of Substitutes­
 
ØFor 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.
Ø
Ø  Theaters too can be a substitute to watching movies at home.
Contd…

vDeterminant of supplier power


Ø Cost of switching supplier.


Ø Presence of substitute input.
Ø Importance of volume to supplier.

Swot analysis
Strengths Weakness

Backward integration. Image of low to medium cost company .


Diversified goods portfolio across Consumer Durables Diversification into too many sectors.
Sector. Not much international recognition.

Multi brand strategy. Too much rebranding/ changing of positioning.


Global company. Weak sales and service network.

Opportunities
 Threats
India is big consumer durables market and growing at 10 to 15 Stiff competition from MNCs like LG, Samsung, SONY.
%. Cheaply available of chinese products.

Lifestyle of people has been change very much so there is Virtually not able to establish the products for online sales and

demand for premium products. marketing.


consumer durable market will become $158 billion by 2015. Local brands available in the market.

 Overall number of rural households estimated to


grow from 135 million in 2001-02 to 153 million in
2009-10
STEP 2

ØWhere we wants
to be?
BCG MATRIX

       ?
MARKET  GROWTH

HIGH

LCD,LEDs
            RATE

LOW

RELATIVE MARKET SHARE
SEGMENTATION
1)  Geographic  Segmentation

In the colder regions sales of the refrigerators is much  
less than the colder regions so  geographic conditions 
play a very vital role in product segmentation. Similarly 
other  products are influenced by the climatic conditions,  
different locations and regions.

2)  Demographic segmentation

This part of segmentation is done on the basis of   age 
.gender, income, family size income, etc.. For egthe Sale 
of  LCDs  and LEDs depend upon  income of the customer 
 and also sale  of Air Conditioners also depend  upon  the  
purchasing  power of the customer. 
CONTD…

3 )  Behavioral  Segmentation

It totally depends upon the usage rate of the customer 
and the loyalty of the customer towards the company. For 
example washing machines shows the best example for 
the consumer loyalty towards the  videocon.

4)   Psychographic  Segmentation

In  this segment  luxurious goods, personality  and 
lifestyle of the customer  effects totally
Goods like air conditioners and  plasma panels, home 
theaters are segmented.
TARGETING
ØPeople with disposable income
ØLow income masses.
ØYouth
ØWomen & senior citizens

In premium segments like Televisions and Air  Conditioners 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 tier­2 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 these segment.
POSITIONING
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 points­of­difference and points­of 
parity associations.
 
Points of Parity (POPs) are associations that are not necessarily unique 
to the brand but may infact be shared with other brands. They represent 
necessary­but not necessarily sufficient­conditions for brand choice.
Videocon's Points­of­Parity are good quality Picture and good sound.
 
Points­of­Difference (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 value­for­
money product.
Tows matrix
Strengths. Weakness.
 Diversified goods Weak brand image.
portfolio. Not much.

Multi brand international
strategy. recognition.
Opportunities. SO analysis WO analysis
Market growing Provide customized Improve the brand
very fast. products according image to capture the
Lifestyle changes to preferences of market.
are creating demand consumers.
for premium
Threats. ST analysis SW analysis
products.
Stiff competition Use its brand basket More expenditure on
from MNCs. effectively to advertisement and
Local brands compete with customer
availability. competitors. relationship
management is
ØHOW  WE WILL     
                        GET 
THERE ?
Marketing mix
Price
Process Promotion

7ps
Physical evidence People

Product Place 
1. Product
Consumer electronics Home appliances
LCDs Washing machine
LEDs Refrigerator
CTVs ACs
DVDs and Home theatre Microwave oven
2. Price
 Value pricing.
 Promotional pricing.

 Bundling.
( Combo offers )
3.Promotion
4.Place
o Videocon wants to tap
rural market that’s why

it will be opening 1000

more stores of its retail

venture – NEXT and

PLANET M

o The company have


over 4000 Dealers and

sub dealers and Network

of 100 service centers.

o The products of videocon


are
also available at electronics

stores like croma, ezone .


5. Process


6. People
Videocon has an environment which is-
 -Driven by Performance
 -Strong Value base
 -Empowered
 -Inclusive
 -Diversified Talent base
 -Fun-filled

7. Physical evidence
Videocon branding

oNew logo. Unveiled on 2nd  July, 2009
oThe new ‘V’  composed of two animated green showing going green,       
    lava like shape called chouw and mouw.
Multi brands
recommendations
 Continuing with go green and electricity
efficient products.
 Relationship marketing through improved
sales support.
 Focus on OEMs as in international market it
can provide cost effective products.
 Videocon is still not able to create a brand
name in the international market so the
company should increase its marketing
budget for making its presence felt in the
international market.