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Summer Training

Report On
Marketing Management
At
Videocon

Submitted By:

Submitted To:
Mrs. Mitchi Ankha

2010-2013

IDEAL INSTITUE OF MANAGEMENT AND TECHNOLOGY

Acknowledgment

I owe a great many thanks to a great many people who helped and supported me during the
writing of this Summer Training Project. I have taken efforts in this project. However, it
would not have been possible without the kind support and help of many individuals and
organizations. I would like to extend my sincere thanks to all of them.
I am highly indebted to Videocon, 296, Udyog Vihar Phase-II, Gurgaon, Haryana. Phone
No.: 0124-4215400 for their guidance and constant supervision as well as for providing
necessary information regarding the project & also for their support in completing the project.

I would like to express my special gratitude and thanks to industry persons for giving me
such attention and time.
My thanks and appreciations also go to my colleague in developing the project and people
who have willingly helped me out with their abilities. I would like to express my gratitude
and thank my Institution i.e. Ideal Institute Of Management And Technology and faculty
without whom this project would have been a distant reality.

TABLE OF CONTENTS

Sr. No.

Particulars

Page Number
FROM

TO

1.

Executive summary

2.

Company profile

12

4.

Major competitors

13

13

5.

Existing marketing strategy of Videocon

14

22

6.

SWOT analysis

23

24

7.

Research methodology

25

27

8.

Analysis and Interpretations

28

46

9.

Findings

47

48

10.

Recommendations

49

49

11.

Conclusion

50

50

12.

Limitations

51

51

13.

Questionnaires

52

53

14.

Bibliography

54

54

EXECUTIVE SUMMERY

I have done my project titled Marketing Strategies for Videocon, at New Delhi.
In my project work my main objectives are to sort out the tools and requirements that
should be implemented by Videocon to grow its market share. Know how to aware
the customer about the product of Videocon.
For

accomplishment

of

this

objective, I used descriptive research methodology and started my project with my


first step, which was identifying respondent. I selected the sample for my research on
the basis of convenience sampling in which I collected datas through those
respondent who came in trade expo which were organized in Jaipur and by meeting
some customers in the multi brand outlets and dealers. The method of data collection
was personal interview and questionnaire only.
From collected data I found a lot of valuable information
through which I did my study on assigned objective, and concluded it in respective
head. At the end of the report writing I have given some of the suggestion to the
Videocon for better performance in the market.

COMPANY PROFILE

HISTORY OF ELECTRONIC INDUSTRIES

The Electronics Industry in India took off around 1965 with an orientation towards space and
defence technologies. This was rigidly controlled and initiated by the government. This was
followed by developments in consumer electronics mainly with transistor radios, Black
&White TV, Calculators and other audio products. Color Televisions soon followed. In 1982a significant year in the history of television in India the government allowed thousands of
Color TV sets to be imported into the country to coincide with the broadcast of Asian Games
in New Delhi. 1985 saw the advent of Computers and Telephone Exchanges, which were
succeeded by Digital Exchanges in 1988. The period between 1984 and 1990 was the golden
period for electronic goods during which the industry witnessed continuous and rapid growth.
From 1991 onwards, there was a first economic crisis triggered by the Gulf War, which was
followed by political and economic uncertainties within the country. Pressure on the
electronics industry remained though growth and developments have continued with
digitalization in all sectors and more recently the trend towards convergence of technologies.
In recent years the electronic industry is growing at a brisk pace. It is currently worth $ 20
Billion but according to estimates, has the potential to reach $ 22 billion by 2011. The largest
segment is the consumer electronics segment.

HISTORY OF VIDEOCON
Videocon is an Indian multinational with interests in Consumer Electronics, Home
Appliances, Colour Picture Tube Glass, and Oil & Gas. Videocon was founded in 1987 by
Nandlal Madhavlal Dhoot. At that time it used to manufacture TV and Washing Machine. In
1989-90, Videocon started manufacturing Home Entertainment Systems, Electric Motors &
AC. Videocon entered Refrigerators and coolers segment in 1991. In 1995, Videocon started
manufacturing Glass shells for CRT and in 1996 it ventured into Kitchen appliances and
crude oil segment. In 1998, Videocon started manufacturing Compressors & Compressor
Motors. In the year 2000, Videocon took over Philips Color TV Plant. In 2005, Videocon
took over 3 plants of Electrolux India and acquired Thomson CPT. Today; it has evolved into
a giant conglomerate with annual revenues of over U$4.1 billion.

CURRENT SCENARIO
The consumer durables market in India is valued at US $ 4.5 billion currently. In 2008,
microwave ovens and air conditioners registered a growth of about 25%. Frost-free
refrigerators have registered significant growth as many urban families are replacing their old
refrigerators. . Washing machines, which have always seen poor growth, have seen
reasonable growth in 2006. More and more Indians are now buying electrical appliances due
to change in electricity scenario. The penetration level of color televisions (CTVs) is
expected to increase 3 times by 2010.

On the brick of rapid economic growth, India has witnessed the dynamic change in country's
consumer electronics industry. In last few years the industry has been witnessing significant
changes in retail boom, growing disposable income and availability of easy finance schemes.
One electronic gadget that has brought new revolution in Indian Electronic Industry is
Television Set. Today, India is fast emerging as the key driver in the global television market
both as a manufacturer and consumer. In recent years, the market for televisions in India has
changed rapidly from the conventional CRT technology to Flat Panel Display Televisions
(FPTV).
Currently, the split between CRT and FPTV is around 97% and 3% respectively. In addition
to this, one of the most striking changes sweeping across the color television market in Indian
market is the exponential growth of the flat panel television (FPTV) market, in common

parlance called the liquid crystal display (LCD) and plasma televisions. Moreover, as per
recent research data available, the global market for FPTV is expected to grow from 51
million units in 2006 to 127 million by 2010.
Looking at the present scenario, over the last couple of years, the LCD prices have even
dropped by around 30 per cent annually. Some of the important factors that boasted this
growth also include the increasing awareness of the advantages of LCD televisions, the
growing availability of the product across dealer counters and the Finance schemes in the
market. Besides this, as a manufacturing hub, the television industry is improving more and
more. There are many domestic and MNC companies

that have increased their production bases in the country. Easy availability of low cost skilled
labour and the emergence of SEZs, which are tax-free zones are some of the key factors that
have resulted in growth of these manufacturing units. In fact, encouraged by tax-breaks, new
manufacturing units are coming up in less-developed regions now.
Today, India is one of the few emerging countries to have an excellent component supply
base in terms of manufacturing facilities for glass and color picture tubes, so it helps it a good
choice for all those companies who are looking to take benefit of this emerging market.
In present scenario top players in consumer durable products companies are:

LG

SAMSUNG

PANASONIC

SONY

VIDEOCON

MANAGEMENT:
The hierarchy of Videocon Company is as follows.

CHAIRMAN
CEO

GENERAL MANAGER

V.P.
MARKETING
V.P.
H.R.
V.P.
OPERATION

V.P.R&D
V.P.
FINANCE

AD MANAGER

SALES MANAGER

M.R. MANAGER

M.R.
EXECUTIVE
(A.C.)

M.R.
EXECUTIVE

M.R.
EXECUTIVE

M.R.
EXECUTIVE

(T.V.)

(WASHING
MACHINE)

FRIDGE

MARKET SHARE:

Being the biggest company in the FMCD sector, Videocon enjoys the 12% market share.
Videocon targets to achieve the 15% market cover in next year.

PRODUCT

There are different brands of the Videocon Company, which are currently in use throughout
the world. This company not only deals in the consumer durable product but also others like
oil & gas, color picture tube glass, etc. Videocon launching new product in market, customer
point of view.

Product of Videocon:

Television

Flat

Ultra Slim

LCD

LED

Conventional

Washing machine

Front Loading

Fully Automatic

Semi Automatic

Refrigerator

Frost Free

Direct Cool

Air-condition

Window AC

Split AC

Micro-Oven

Solo

Conventional

Grill

Players

The overall volume of this company is as follows.

MAJOR COMPETITOR

LG

SAMSUNG

SONY

EXISTING MARKETING STRATEGY OF VIDEOCON

TARGET MARKET:
Videocon Industries is eyeing a growth of 35-40% in terms of value for the next fiscal 201011. It plans to achieve the desired growth by introducing new product lines, various offers
and revamping its service centers across 20 cities. As the consumer gets conscious about
spending money with the global meltdown, at present the demand is high for mid segment
product line-up.
The focus for Videocon Group is rural markets and major growth is going to come from
these markets, which are growing at over 22%. The group has recognized high Market
Potential Value (MPV) and Market Intensity Index (MII) locations with potential and future
prospects to strengthen the business operations and spread consumer reach

MAJOR SEGMENT:Major segments are basically those people who plan to make a new home and planning to
marry. There are so many people who take electronic product within 5 year and those people
who take 6-7 year. So, their basic segments are those people who take this electronic product.
The basic segment on Rural and Semi Urban area where many people like to buy the
electronic product.

FACTOR AFFECTING SALES:There are many factors, which affects the sales of Videocon. To name a few:

Per capita income

Competitors

Festival time (like diwali, wedding time)

MAJOR CUSTOMER NEEDS:-First of all the majority dont care that what they are going to have. In other words, they dont
care before purchase that whether it is Videocon or LG. They dont actually differentiate
between these two brands in order to their technology and quality.
They believe on BRAND AND QUALITY
Consumers availability in brands is basically works like:

Push availability

Pull consumers demand.

For this reason Videocon have provided their event and others social work like participated in
games and others educational activities in the market. They have maximum number of event
and others social activities in the market. They provide this interior infrastructure free of cost
just to provide Videocon to their customer, which they want to be purchase.

Their salesman and mechanics regularly visit all the shops where Videocon has its
infrastructure to check that either it is in proper condition or not, if not then they immediately
change or modified it. And day to day visit on the counter and make a customer query and
easy and ass possible as solve the problem in less time.

THREATS FROM COMPETITORS


Threats are well planned. Price is the major threat. When price goes certain beyond the exact
price whether come down or go higher its effects the consumption of electronic goods.

Because when the price go higher people go for the substitute of Videocon i.e. LG. and
when price goes down they think that there is must be something wrong in it. In short it all
depends on customers perception.

TARGETS THAT WOULD LIKE TO ATTAIN

Every organization runs on the bases of profit maximization so Videocon is also looking for a
high profit margin. There are three major ways of making money

Overnight profit

Windfall profit

Ethical and un-ethical ways

Over Night Profits:They could be overnight profit that is for the number 1 brand for the year. This could be got
my increasing sales volume.

Windfall Profit:Can be windfall profit. They are the extras profit. When the consumption the consumption is
on boom. So, there is different kind of profits.

Ethical and Unethical Ways:-

Profit can also get through ethical and unethical ways. They believe on this quote
Everything is fare in love and war.
Some profits stays for some time like over night profits and some just come and go like
wind fall profits. And they can also get profit through different approaches.

EXPANDING TARGET MARKET


In last 2 years Videocon has come back in aggressive manner.

Consumer has choice

Attractive brand logo and slogan

Brand differentiating

Consumer Has Got Choice:-

Now the consumer has got choice. Because now they know the name of another big
brand, though Videocon is the 5nd best name but it can get a better position after some
time?

Attractive Brand Logo and slogan:-

Now the consumers know the Name of Videocon, because Videocon is the name,
which is the most popular word in India. Videocon has change own logo with
attractive slogan EXPERIENCE CHANGE.
brands with each other.

So people can better differentiate

Brand Differentiation:-

Now different companies have got different brand names. So, people can distinguish
between brands. Five major brands Videocon, Samsung, LG, Sony, and
Philips also have brand names.

STRATEGIES OF GETTING GOALS I.E. HIGH PROFITS

To increase the price is the least thing, which Videocon can adopt. There are so many ways
through which Videocon can increase the profits. Some major ways are as follows.

Volume can be increased

Interest level of consumers

To take part in energetic festivals

How to increase the volume of consumers?

Videocon can increase the volume by expanding the industry of Videocon. Through
advertisements, offering different interesting things to attract people towards this product.

How to increase the interest level of consumers?

Videocon is increasing the interest level of consumers by offering different new technology
and reduce price and to be provide better service.
For example Videocon is increasing the number of technology in TV, this is one of the
product of Videocon. Through offering different technology Videocon and to be reduce the
price of Videocon product according to competitor and to provide the after sales service can
increase the Level of consumers and through this profit can be gained.

How to take part in energetic festivals?


Videocon is already taking part in the festival like Diwali since last 2 years. Videocon
offers different attractive things in their festival and through this Videocon gained high profit
and consumption of Videocon increased on these occasions. And year 2010-11 people were
anxiously waiting that what interesting thing Videocon is going to offer and to be makes
good services.

Existing Videocon strategy:Product Strategy

Stop all curved CPT production

Shift focus to LCD CTVs, ref. and wash-machine; target: by December 2010.

Launch slim 21, LED, and wash-machine and focus slim 29 immediately and LED
and refrigerator. Target is to have almost all CRTs production shifted to Slim.

Take full advantage of Digital and HDTV revolution, gain leadership in HDTV Slim
TV segment through OEM and model mix worldwide strategy.

Take capture the market of washing machine by .

Study unique product range / pro large to fill market gaps in markets such as Asia and
Eastern Europe / CIS / South America

Focus on reduction of costs through reduction of glass, shift to AK mask and


reduction of process rejection.

Sales Strategy

Improve relationship with existing clients; Use of Thomsons excellent Relations as


preferred supplier to maximize sales.

Improve service and quality without putting pressure on price structure.

Fetch a better price and avoid crisis of huge stock.

Leverage slim product offering.

Launch LCD/LED 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).

Launch new range and new quality of washing machine and refrigerator.

Benefit from OEM CTV business with the help of Videocons CTV
Division, invest for new models, introduction of new technologies.

Upgrade to LCD's schemes and other home appliance product.

Easy EMI.

Re. 1 offer.

Improve after sales service

Free service camp on the wheels.

To organize the event in the market.

To create the personal relation between the customer.

Industrial Strategy

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

This will reduce manpower and overheads per picture tube by 30% that will be
redeployed on new activities in the sites (new technologies)

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.

it is envisaged that 100m will be invested in the next 2 years for this purpose

Expand into LCD panels back-end assembly (from buying LCD arrays from big
suppliers like LG, SDI, CMO, AUO, and Sharp

Cost Strategy

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

Reduce production cost by upgrading and improving the production


lines.Thomson-Videocon partnership will have its own base of additional 4
Million units CTV

Necessary to rationalize R & D efforts, necessary to make its cost below 1.5% of
sales

Product Development

I-TV web enabled TV at the price of 13,900 with exchange offer for an
Older version.

TVs With hard disk to store programs.

Wall mounted Flat CTVs at the price of 12,990.

Aimed at fulfilling needs of customer who cant buy LCDs but prefer to do
away with CTV models which occupy space in living rooms.

CTVs with inbuilt set top box

Tie up with DTH player and provide annual subscription offer.

To provide Direct to home services.

Bluetooth enabled CTV.

New range of wash-machine, refrigerator and air-condition, with new colour.

New Product Line

Introduce CCTVs as it has the demand in several areas like restaurants, airport, Railways
stations, banks, hospitals, shopping malls, company offices.
A lifestyle statement
People do not see the television as a mere electronic device providing sight & sound. It has
now become an entertainment experience and a lifestyle statement that people are willing to
pay for. Since consumers are ready to shell out money for a lavish entertainment experience,
there is today no limit to the number facilities that a television can envision of offering. From
in built recording to internet facilities to supreme sound etc. The opportunity for this industry
lies in coming up with new features to the conventional CTV. There is therefore lot of
scope for growth and innovation.

SWOT ANALYSIS
Strengths

Videocon has largest distributed capacity manufacturing base across India with 17
facilities and plant in china, Poland, Italy, Mexico.

Manufacturing capacity is 1, 40000 units.

Videocon has a network of 400 plus service and 85 mobile service vans to give better
service to their customers.

Tie up with the Matsushita electric company of Japan add to the goodwill of
Videocon.

Customers are aware about Videocons products.

Company has good brand name.

Strong backward integration.

Videocon has largest distribution manufacturing based across in India.

Large brand basket.

Multi brand strategy.

3rd largest picture tube manufacture in India.

Cheap price.

Globally acceptance.

Weaknesses

Less investment on advertisement of Videocon.

Fewer margins to the distributor/dealer.

Weak promotional strategy of Videocon.

No proper approach of target customer.

Wide brand basket, which might lead to conflict of interest unless effectively
managed.

CRT technology is losing popularity.

Less focus on unconventional channel.

Not providing good service.

No exclusive show rooms.

Opportunities

Videocon takes over the Electrolux.

Videocon buys Thomson color picture tube manufacturing plant.

Videocon international is going global.

Videocon exploring whole new segment

During the climate of Jaipur becomes hotter day by day and coolers do Not fully
satisfy the customers requirement. This provides a great opportunity for AC
manufacturers.

Growing semi urban market.

Industry is in increasing phase.

Price has come down; now more and more people are going for it.

Due to financial facilities even the medium segment is going for it.

Purchasing power of people is increasing day by day. Moving into new attractive
market segments.

Focused on unconventional channels.

Mergers joint venture of strategic alliances.

Threats
Entrance of global competitor like china.

Brand loyalty is more of LG & other company.

Market condition like slumps in market.

A new competitor in your home market.

Competitor has a new innovative substitute product or service.

Increased trade barrier.

Brand reputation is not good.

Competition in global CPT market especially from integrated players such as LG


Phillips, Samsung and Matsushita are intense.

Research Methodology

Research methodology is away to systematically solve the research problem. It may be


understood as a science of studying how to research is done scientifically.

In it we study the various steps that are generally adopted by researchers, in studying our
research problem along with the logic behind it.
It is necessary for the researchers to know not only the research method techniques but also
the methodology.

Research process-Research process consists of series of action or step, which is necessary to


effectively carry out research and desired sequence of these steps.

Define Research Objective


Preparing Research Design
Collecting The data
Analysis the Data
Interpret
Report

Sample design
After deciding on the research approaches we concentrate on designing sampling plan. Which
called three decisions?

Sampling unit

Sample size

Sampling procedure

1.Sampling Unit:-

Who is to be surveyed? We targeted builders in different areas of Jaipur. Once


sampling unit is determined it becomes easy to determine the sampling plan.

Sample size:-

How many people should be surveyed? We targeted 140 customers and 25 dealers in
Jaipur for data collection and further analysis.

Sampling:-

Procedure: how the respondent should be chosen? To obtain a representative sample,


probability sample of the universe should be drawn. We choose 140customers and 25
dealers by the random sampling from Jaipur and upcountry.

SURVEY

The survey was conducted in the field of with the help of personal interview and scheduling.
The questionnaires contained a series of question which was aid while conducting the
personal interviews.

Personal interviewing tends to be o greatest opportunity for gathering abdicant information.


The survey is conducted in the key towns of Jaipur as the respondents were scattered all over.

Data collection
Once the sampling design has been finalized, we concentrated on the data collection. These
data were helpful for further analysis.

Primary data

Secondary data

Primary data:Primary data are those data which are collected a fresh and for the first time & thus happened
to be original character.

We collect primary data during the course of doing descriptive type research and in survey,
and then we obtain primary data either through personal interview or by the questionnaire or
by the observation with respondents.

Secondary data:That are already available i.e. they refer to data which has already been collected & analyzed
by the someone else like list of potential distributors, retailers ,dealers are provide by
company.

ANALYSIS AND INTERPRETATIONS

Customer Bashed Questionnaire

Which brand of electronic product would you like to buy?


Sony =20%, Samsung = 26%, LG=28%, Videocon =18% and Others=8%

No. of customer 140

According to survey finding 28% customer purchase LG brand product, 26%


customer purchase Samsung brand product, 20% customer purchase Sony brand
product, 18% customer purchase Videocon product and 8% customer purchase others
brand.

Generally, when you like to buy the electronic product?

No. of customer 140

According to survey finding mostly customer like to buy the product in period of
July - September or April June period and January March or October -December
period customer did like little no. of consumer durable product to buy.

Which of the following brands has been bought by you since last one year?
Sony=20%, Samsung=26% , LG=28% , Videocon=18%, Others=8%

No. of customer 140

According to survey finding the customer bought the product last one year LG brand
product bought and Samsung respectively 28% and 26%. And Sony bought 20%
where as Videocon bought 18% in last one year and others brand customer bought the
8% product.

4. Where would you like to buy the product?


Exhibition =11%, Authorized Dealer=8%, Showroom=10%, Co-shopper=6%

No. of customer 140


According to survey finding the customer would like to buy the product in Authorized Dealer
and showroom, where as the less customer like to buy the product in Co-Shopper.

Please rate the following sources of information according to the level of importance
of each source

Friends ___
Retailer ___
Advertisements ___
Magazines or newspapers ___
Any Other____

No. of customer 140

According to survey finding the customer getting information by advertising and


retailers through. Others median to getting information by magazine and friends
circle.

How much satisfied are you with Videocon product?

Highly Satisfied____, Moderately Satisfied____, Neither satisfied nor dissatisfied___,


Moderately Dissatisfied___, Highly dissatisfied___

No. of customer 140

According to survey finding the maximum consumers are satisfied with LG and Samsung.

If the price of your most preferred brand increases what would you do?
Shift to another brand or still buy the same brand.

No. of customer - 140

According to survey finding when price are increase the consumer are shift to other brand.

If you choose to shift then which Brand would you prefer?


Sony___, Samsung___, LG___, Videocon___

No. of customer - 140

According to survey finding consumer are shift to LG and Samsung brand.

Please rate the following brands on the scale of 1-5 for the attributes mentioned
below i.e. write 5 if you feel the attribute is good enough to fully satisfy you and mark
1 if you feel the attribute could not satisfy you.

ATTRIBUTES/BENEFITS, BRANDS
LG

Samsung

Videocon

Sony

Price
Stylish product
Brand name
Easy to use
Discount
Others

No. of customer 140


According to survey finding the consumer mostly satisfied with price of product of any brand
and another is brand name.

Dealer Bashed Questionnaire

Are you satisfied with Videocon advertisement?

No. of dealer - 25

According to survey I am find the dealer are satisfied with Videocon advertising.
56% dealers are satisfied with Videocon advertising.

How long you want our advertisement to run?

No. of dealer - 25

According to survey I find the dealer response to watch the advertisement on less than
one year, after that change advertisement.

Which type of advertisement would you prefer?

No. of dealer - 25

According to survey I find the dealer say to see the advertisement on television and
others is newspaper advertisement.
According to this graph 46% dealer want to watch the advertising on television, 22%
dealer want to see the advertisement in newspaper, 20% dealer says to advertisement
see on outdoor (like on road adv., boarding - hooding, auto advt. etc.) and 12% dealer
said the gives the ads on radio to promote in ruler area, because there are many
opportunity to grow the market.

Are you satisfied with Videocon product price range?

Answer. Yes=79% , No=21%

No. of dealer 25

According to survey I find the mostly dealer are satisfied with Videocon product price
range.

If no, how much you prefer to like the product price range of Videocon?

No. of dealer 25

According to survey the 22% dealers want to decrease the price range of Videocon
product. The range comes near Rs. 5000 to Rs. 25000.

Which process for selling our services or products would you prefer?

Direct personal sale

Direct online sale

Indirect through channels

Others

No. of dealer - 25
According to survey I find the dealer want to selling process use the personal selling method.
On these basis the Videocon are providing the ISD on the retail store.
And some dealers are wanted to use the selling process to use the indirect.

Are you satisfied with the after sales service of Videocon?

No. of dealer - 25

According to survey I find the maximum dealers are not satisfied with Videocon after
sales service.

If not, then which of the brand would you like after sale service?

No. of dealer 25

According to survey I find the Sony, Samsung and LG Company are good providing
the good after sales service.

Are you satisfied the Videocon policy and his term & condition?

No. of dealer - 25

According to survey I find the 48% dealer are satisfied with Videocon policy, and
34% are not satisfied.

Where are you like to advertisement of Videocon?

No. of dealer - 25

According to survey I find the give the advt. in commercial are and others are social
place area.

FINDINGS
DEALER SURVEY FINDINGS:-

By calculating the display share we found that in most of store LG has 28% display
share almost all categories.

By the actual monthly sale of particular store we came to know the capacity of the
store and how much product can they sale.

It helps us to know that weather dealer is capable of being a direct dealer of


Videocon or not and it also helps to find out the new dealer who are capable of being
the dealer of Videocon.

We also came to know while visiting the shops that there was big problem of after
sale service.

Many dealers were facing the problem of after sale service because there is no follow
up calls from Videocon.

Demo calls also not done properly.

The top competitor of Videocon product is LG.

The performance of Videocon is in better position but the competitor also hold closer
margin.

There is high growth of sale in market due to booming in new technology and better
service.

CUSTOMER SURVEY FINDINGS:-

Secondary supports play an important role in the customers mind and create
awareness among the customers. The secondary support includes Demonstration,
Exhibition & Even Sponsors.

From the survey it was found out that the majority of customers dont buy consumer
durables from exhibitions. They just visit the exhibitions to see the co. latest model.

They want to buy from the showrooms or from co. showrooms. For them service is
important. Beside convenience and other factors service is key factor.

Also majority of customers do not want any financing scheme for purchasing the
durables.

There was heavy rush on weekends so large numbers of ISDs were appointed that
day. Also the live demo calls helps in selling. Exchange offers also generate sale.

Customers are also now very choosy in buying the product and it is important for the
company to make loyal customer of their brand.

In survey we found that Videocon has captured less market share in every Category.

Videocon, LG and Samsung have bottle neck competition in TV and REF.

The product is well aware and it is on top of mind of customer.

Customers are also now very choosy in buying the product and it is important for the
company to make loyal customer of their brand.

RECOMMENDATIONS
The variables affecting the industry with regard to each of the five forces have been categorized
as favorable or adverse. Favorable variables have the potential to improve profitability, while
adverse variables reduce profitability of the industry. Some strategic initiatives, which could be
adopted to leverage the favorable forces and protect themselves from the adverse ones, are as
follows:

R&D and Marketing will have to work closely together. R&D will have to play a role in
cost innovation, which can cut component cost and raise performance. The number of
defectives has to be reduced at negligible levels. The quest should be to do even better.
Each assembly line can be made to compete with the other.

Vital to the spread out is the re-haul of distribution network. Home appliances have
necessitated separate dealers, many of them specialists. For sharper focus on all
categories individually, the market has to be opened wider.

Brand building will be important, so as to ensure brand preference. Marketers will have to
strategies to pull the consumer up the value escalator. A good fraction of sales if come
from high margin products as flat TVs and projection TVs would improve profitability of
companies. Sharply differentiated products with effective Communication on a
continuous basis would be the key for future. Challenge lies in creating higher order
universal benefits and sensitizing the larger audiences to it.

Buyers are easily swayed by costs, which are also verified by the presence of large
number of product offerings. Focus would be on providing value for money to the
consumer, with more brands in the economy segment. The challenge before marketers is
to span out, and address a wider set of needs. They will have to identify segments not
addressed by them so far and also introduce low price-point products aimed at rural
markets.

Besides catering to the cost conscious segment, marketers need to segment the market on
the basis of psychographics, which will help in inducing brand loyalty through lifestyle
and experiential marketing.

The increase in disposable incomes, more number of households above the threshold
income, declining prices, shortened replacement cycle and the demand for multiple TV,
all these factors are expected to sustain the growth momentum at 10-12 per cent during
2008-09 to 2010-11.

CONCLUSIONS
Videocon in the year 2012, the company will be great success, as the strategy work which
result in making Videocon Company the Indias leading company. In 2012, company
accomplishes the crust of its strategy as:

The focus for Videocon Group is rural markets and major growth is going to come
from these markets, which are growing at over 18%

To focus on the semi urban market an there will be grow the market to 16% and
getting good response on that market.

Ethernet connection that gives the largest selections of free and premium movies,
TV shows, and sports out there.

To be focus on the middle class family, which monthly family incomes comes on
Rs. 10,000 and above.

To focus on the premium market customer.

To become cheaper product, Videocon should increase the level of technology and
minimizing the pricing gap in respect of market, to avail the Premium quality
product.

To increase the branding of Videocon, the proper merchandising has applied by


Videocon retail store.

To advertising the Videocon with good and strong message.

To focus on modern monetary and branding in shop and out shop.

To introduce the product in simple and proper communication

Videocon will focus on expanding their segments on the womens customer.

To be prepared the other brand component with similar quality and in more
economical rates.

Videocon introduction of a new tagline created to target experience change.

Videocon identification upon the manufacturing structure.

Videocon strive on innovative product to easy to use the consumer.

No interest for 24 months if the customer applies for the new Videocon
financial service card at point of purchase.

Sponsorship includes 2010 & 2014 World Cups.

Videocon products are considered to high quality, slim product, unique and
conventional.

To become the No.1 Service Provider in India

LIMITATIONS
Every study has certain limitations. In my study, also there were certain limitations, which I
could not able to solve.

The research was conducted in entire Jaipur area.

My research work period witness the biggest ups and downs in product sale of
different brands, which affected the perception of the customer. This was biggest
drawback of my study.

Time factor was also important for me. I had only 60 days to complete my
research, for which a full-fledged report was insufficient for me.

The customer filled the questionnaire mostly in careless manner, so it was difficult
to make them hold for time.

I had only found the upper-middle class family to fill up the questionnaire, but
generally, an average middle class family was required for the study.

My study is not recognizable in whole INDIA as well as Jaipur and its upcountry is due to the
above limitations and less area coverage.

QUESTIONNAIRES

Customer bashed questions

Which brand of electronic product would you like to buy?


Sony___, Samsung___, LG___, Videocon ___

Generally, when would you like to buy the electronic product?


Jan-March, April to June, July to Sept., October- December

Which of the following brands has been bought by you since last one year?
Sony___, Samsung___, LG___, Videocon___

From where you would like to buy the product?


Exhibition_ __, Authorized Dealer ___, Showroom ___Co-shopper___

Please rate the following sources of information according to the level of importance
of each source ( 1-5, 1 is stand for less and 5 is High)
Friends ___
Retailer ___
Advertisements ___
Magazines or newspapers ___
Any Other___

Are you satisfied with the performance of Videocon product?

Highly Satisfied____, Moderately Satisfied____, Neither satisfied nor dissatisfied___,


Moderately Dissatisfied___, Highly dissatisfied___

If the price of your most preferred brand increases what would you do?
Shift to another brand or still buy the same brand.

If you choose to shift then which Brand would you prefer?


Sony___, Samsung___, LG___ Others

Please rate the following brands on the scale of 1-5 for the attributes mentioned below
i.e. write 5 if you feel the attribute is good enough to fully satisfy you and mark 1 if
you feel the attribute could not satisfy you.

ATRIBUTES/BENEFITS BRANDS

LG

Samsung

Videocon

Sony

Price
Stylish product
Brand name
Easy to use
Discount
Others

Dealer bashed questions

Are you satisfied with Videocon advertisement?

How long you want our advertisement to run?

Which type of advertisement would you prefer?

Are you satisfied with Videocon product price range?

If no, how much you prefer to like the product price range of Videocon?

Which process for selling our services or products would you prefer?

Direct personal sale

Direct online sale

Indirect through channels

Others

Are you satisfied with the after sales service of Videocon?

If not, then which of brand would you likes after sale service?

Are you satisfied the Videocon policy and his term & condition?

Where are you like to advertisement of Videocon

BIBLOGRAPHY
Books:Marketing management:

Philips Kotler

Research methodology:

C.R. Kothari

Mkt. mgt. planning & implementation: V.S. Ramaswamy & S. Namakumari

Website:www.videoconworld.com
www.business-standard.com
www.google.com
www.wikipedia.com
www.timesofindia.com
www.financialexpress.com
www.economictimes.com

News paper:Economics times


Financial express
Times of India
Business standard