A Study of Channel Of Distribution

with finding prospective dealers for

videocon.
SUBMITTED TO
DR. RAJESHWAR NATH
INMANTEC BUSINESS SCHOOL (GHAZIABAD)

SUBMITTED BY,
SUDEEP RAJ
PGDM(09-11) BATCH
sudeep.raj1987@gmail.com
A Study of Channel Of Distribution
with finding prospective dealers for
videocon.

Sudeep Raj
Roll. No PG09 107
 Company Profile
TYPE PUBLIC (BSE:511389)
INDUSTRY CONGLOMERATE

Founded 1979

FOUNDER(s) Nandlal Madhavlal Dhoot

Businesses Consumer Electronics

Home Appliances
Components
Office Automation
Mobile phones
Wireless services
Internet
Petroleum
Satellite television
Power
CONSUMER ELETRONICS
 PRODUCT CLASSIFICATION
Television Home Appliances
• LED Microwave ovens

• LCD Refrigerators
• Ultra Slim TV Washing machine
• Flat TV AIR CONDITIONERS Conventional
TV UPS/Inverter
Batteries

AUDIO/VIDEO
• DVD Player
• Multi Media Player
Statistical tools and models
Software use
SPSS – Hypothesis Test
(chi-square)
Excel- Data interpretation and
analysis
Model
Porter’s five forces model.
 Threat of new entrants
•New Players can enter
•New entrants will need to HIGH
invest in brand,
technology, distribution MODERATE
LOW

Competitive rivalry Customer power

Supplier power •Number of well-
most raw Multitude of brands
established players; across price points
materials are several new players
imported —wide variety of
entering choice for customers
Manufacturing
•Good technological
plants capability

Threat of substitutes
•Unbranded products
and cheaper imports
could enter the market

PORTER’S FIVE FORCES MODEL

OBJECTIVE

1. To study of channel of distribution of VIDEOCON.

2. Checking the dealer satisfaction level and theirs
expectation from VIDEOCON
3. Identification of different brands preference in
different product categories.
4. Study the Sales share of major consumer durable
players at dealers shop.
 Research methodology
Data Collection Primary and Secondary data
Research Tools Questionnaire
Observation
Personal interview
Sampling Units Customer/Dealers/ Retailers
Target Population Dealers of north west delhi district.
Sample Size Dealers - 100
Retailer - (50-mobiles retailer)
Customer - 50

 Total
200
Sampling frame List of Delhi’s dealers
Sampling Method Random Sampling

Extent North-west delhi district

VIDEOCON MULTI-PLE CHANNEL OF
DISTRIBUTION
1st Channel
COMPANY

DIGI WORLD
(EXCLUSIVE
SHOWROOM)

CUSTOMER
2 channel RETAILING NETWORK
nd

COMPANY COMPANY

NEXT RETAIL PLANET M

CUSTOMER CUSTOMER
3rd Channel Traditional Channel
COMPANY

CARRY AND
FORWARD
AGENT

DISTRIBUTOR

DEALERS

CUSTOMER
 VIDEOCON
SAMSUNG
LG
Data Analysis

00

HIG HL Y
32

U N S A T IS F IE D
0
4
14
U N S A T IS F IE D
0
6
12
N EU TR A L

16
59

38
S A T IS F IE D
84

31
HIG HL Y

4
S A T IS F IE D

0
90
80
70
60
50
40
30
20
10
RESPONDENTS
 Dealer’s Expectation
DEALER'S EXPECTATION

60

50
RANK 5
RESPONDENT

40
RANK 4
30 55 RANK 3
50
20 40 RANK 2
38
32 RANK 1
10

0
BETTER BETTER BETTER AUXILARIES HIGH PROFIT
SERVICES QUALITY MARKETING BENEFITS MARGIN
 Sales Share
SALE'S SHARE OF DIFFERENT BRANDS

19% SAMSUNG
18% VIDEOCON
24% LG
WHIRLPOOL
OTHERS

12%
27%
 PROSPECTIVE DEALERS IN DIFFERENT PRODUCT
CATEGORIES
LCD
REFRIGERATOR
MOBILES
4% 4% 9% AIR CONDITIONERS
11% 5%
4% MICROWAVE OVENS
COOLER
2%
D2H
DVD
5% 27%
HOME THEATER
3% INVERTOR
19% 3% 4%
UPS/BATTERIES
CTV
WASHING MACHINE
PRODUCT CATEGORIES MOST PREFERRED BRAND VIDEOCON position
as on 1st position.
CTV LG 3rd

LG 3rd
LCD
AIR CONDITIONERS VOLTAS (TATA) 5th

WASHING MACHINE WHIRLPOOL 3rd

DTH TATA SKY 2nd

MOBILES NOKIA Customer

inclined/demand
VIDEOCON mobiles but it
is too early to judge its
market position.
• VIDEOCON has a very strong distribution
network.
• Dealers have an emotional attachment with
VIDEOCON
• Dealers do not have any major problem with
- Quality
- Variety
- Pricing
Profit Margin
Problem face by the Customer’s are:-
- After sale service.
-No follow up calls.
-Delay in services to end customer.
-No sufficient essential replacement part.
Problem face by the Dealers’s are
- Distributor’s Catalogue/List are absent.
- Price fluctuation.
- Distributor not frequently visit.
- Customer are dissatisfied
Effect goodwill as recommendation
 KEY TO REMOVE
THE PROBLEMS
AND OPEN
A
DOOR FOR PROSPERITY
 Recommendations
• The company should look for an integrated program.
- VMS (Vertical marketing system)

• VIDEOCON would ensure that each dealer should resourceful

with a catalogue
- Print documents
- Company website.

• Follow Customer relationship management

- Frequent follow up calls
- Prompt service
• In special cases temporary replacement of product
if it take a long time to repair.
- Repair shops
- Exchange products
• Marketing and Promotion should be improve.
- Sign boards
- SMS
- Company’s hoardings.
- Free auxiliaries things

BE BOLD BE SEEN
 Conclusion
• There is a good demand in the market for
VIDEOCON products whether new venture or
well established one
• VIDEOCON has a very strong multi-channel
distribution network
• Bad After Sale Service. It is really a threat for
VIDEOCON Industries.