Professional Documents
Culture Documents
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.
ØExternal factors
CONTEXT PEST ANALYSIS
Political Factors
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
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…
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
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
PLANET M
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.