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INTRODUCITON: Every business organization that comes into contact with the

customer develops a perception in the mind of the customer. Today, in this


competitive world every organization needs to know the perception in the mind of
the customers. In order to gain mind share or heart share of customers along with
the market share is the main lookout for the organizations. Especially in consumer
electronics sector, where the products are more or less same, the only way to
leave positive impact on customer’s mind and to gain competitive advantage is
providing best possible services to the customers. Introduction part of this
report is classified into two different sections. 1. Problem Statement The
principle cause behind this project is to know that to what level customers are
enjoying and aware of videocon TV offered by the company and what further
improvement can be done in future in this area so as to get brand awareness. 2. •
• • • • • • Objective To have an overview of videocon. To know the reputation of
videocon T.V. in the market. How the consumer preference towards the brand
videocon. The main objective how to increase the reputation of videocon brand in
the market. To understand its competitors in business. How videocon will create a
good image in the market. To understand the 4 Ps used by the videocon in business

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CHAPTER-1

STUDY OF THE INDUSTRY

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INDUSTRY SCENARIO
Before the liberalization of the Indian economy, only a few companies like
Kelvinator, Godrej, Allwyn, and Voltas were the major players in the consumer
durables market, accounting for no less than 90% of the market. Then, after the
liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo, Aiwa
came into the picture. Today, these players control the major share of the
consumer durables market. Consumer durables market is expected to grow at 10-15%
in 2007-2008. It is growing very fast because of rise in living standards, easy
access to consumer finance, and wide range of choice, as many foreign players are
entering in the market. Consumer durables are the products whose life expectancy
is at least 3 years. These products are hard goods that cannot be used up at once.
Consumer durables Sector can be classified as follows: 1. Consumer Electronics
includes VCD/DVD, home theatre, music players, color televisions (CTVs), cameras,
camcorders, portable audio, Hi-Fi, etc. 2. White Goods include dishwashers, air
conditioners, water heaters, washing machines, refrigerators, vacuum cleaners,
kitchen appliances, non-kitchen appliances, microwaves, built-in appliances,
tumble dryer, personal care products, etc. 3. Moulded Luggage includes plastics.
4. Clocks and Watches 5. Mobile Phones

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ABOUT CONSUMER ELECTRONICS INDUSTRY 1.History of consuemr Electronics in India The
Electronics Industry in India took off around 1965 with an orientation towards
space and defense 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. Colour
Televisions soon followed. In 1982-a significant year in the history of television
in India – the government allowed thousand of Colour 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
electronics during while the industry witnessed continuous and rapid growth. From
1991 onwards, there was first an economic crises 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 $ 10 Billion but according to estimates, has the
potential to reach $ 40 billion by 2010. The largest segment is the consumer
electronics segment. While is largest export segment is the consumer electronics
segment. While is largest export segment is of components.

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The breakup of production in various segments the industry is shown be low: •
1950s • 1970s • 1982 • 1992 • 1993-94 • 1994-95 Radios -imported & Sold
Manufacturing of B/W TV started Colour TV Transmission, Manufacturing of CTV
started Economic Liberalization Process initiated Dismantling of controls such as
licences, Ban on use of Foreign Brand Names etc. Entry of MNCs – Panasonic, Sony,
LG, Samsung etc. Lowering of Import duties. Cable TV Started. • 1995 • 2001 • 2004
Till Date Entry of Many MNCs & Rapid Growth, Continuous Lowering of Import Duties
Non tariff Barriers on Imports removed. Free Trade Agreement (FTA) with Thailand
implemented,Resulting in reduction of import duties to 0% on Colour Television
sets, Colour Picture Tubes, Refrigerators and Air Conditioners, thus more
competition. • 2005 • 2007 • 2008 DTH Services Started Entry of Organised Retail
FTAs with other countries & FDI in retail likely.

• Late 1960s B&W TV Transmission started

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2. CURRENT SCENARIO
The consumer durables market in India is valued at US $ 4.5 billions currently. In
2008, microwave ovens and air conditioners registered a growth of about 25%.
Frostfree 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
2008. 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 colour 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 2009.

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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 lowcost skilled labor 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 player for colour television are • • • • • • • •
LG VIDEOCON SAMSUNG SONY ONIDA PHILLIPS SANSUI BPL

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3. INDUSTRY ANALYSIS- 5 FORCES MODEL

Michael Porter’s Five Forces Model provides a robust and time-tested framework for
analysing any industry, reflected in the strength of the five forces (industry
competitors, potential entrants, threat of substitutes, power of buyers and power
of suppliers). The collective strength of the five forces determines the ultimate
profit potential in an industry, Where profit is measured in terms of long-term
returns on capital invested. The elements of each of the above forces and the
extent and /or effect of each element in the context of the television industry
have been analysed and enumerated below. The Porter’s Five Forces tool is a simple
but powerful tool for understanding where power lies in a business situation. This
is useful, because it helps you understand both the strength of your current
competitive position, and the strength of a position you’re looking to move into.
With a clear understanding of where power lies, you can take fair advantage of a
situation of strength, improve a situation of weakness, and avoid taking wrong
steps. This makes it an important part of your planning toolkit. Conventionally,
the tool is used to identify whether new products, services or businesses have the
potential to be profitable. However it can be very illuminating when used to
understand the balance of power in other situations.

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1. COMPETATIVE RIVALRY AMONG INDUSTRY (VERY HIGH) 2. BARGAINING POWER OF BUYER
(VERY HIGH) 3. BARGAINING POWER OF SUPPLIER (LOW) 4. BARRIER TO ENTRY (LOW) 5.
THREATS OF SUBSTITUTES (LOW)

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3.1 Degree of Rivalry
Degree of rivalry denotes the intensity of competition within the industry.
Videocon, LG, samsung, Sony, Onida, are the big competitors in television
industry. Although Videocon, another major player has managed to hold its own in
the midst of the onslaught from the Korean majors, though profits have suffered.
Other large Indian companies in the top of the list are Mirc Electronics. While
Mirc Electronics is managing to hold its share by adopting value for money
strategy, BPL is facing tough time, experiencing drastic decline in market share.
Sony, Philips, Akai, Sansui, Aiwa, Toshiba and now Hyundai are the other foreign
brands in the market. The industry is based on numbers game and companies will
have to maintain a fine balance between catering to lifestyle requirements and
meeting the needs of average consumer. 3.1.1 Competitor Analysis A detailed
analysis of some of the major players is done below: LG ELECTRONICS LG Electronics
rightly understood the consumer motivations to create magnetic products, price
them strategically, position them sharply and keep making the magnetism more
potent. Having understood the finer differences in consumer motivations, it opted
for sharp- arrow ‘reasons-to-buy’ differentiation over the ‘blanket-all approach’
taken by most of the other players. It is an aggressive marketer. It focuses on
low and medium price products. SAMSUNG Initially the strategy of Samsung in India
was to create premium image by emphasising global brand. After facing stiff
competition from another Korean majorLG, Samsung also started playing price game.
In 2004 it reverted back to its premium positioning, although it resulted in some
loss of market share. In line with the Global Digital Initiative of the Parent
Company, Samsung India is seeking to acquire digital leadership in India by
introducing its digital ready televisions like the 40" LCD Projection TV, 43"
Projection TV and the Plano series of Flat Colour televisions. RAMAIAHINSTITUTEOF
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ONIDA Its popular devil ad although had engendered a strong emotional pull towards
the brand, technologically it represented no advancement. The company plugged the
gap by touting its digital technology. Like Videocon, it has also been able to
hold its market share. The world-class quality of Onida has enabled the company to
make a breakthrough on the export front. It has technical tie- up with the Japan
Victor Company, better known as JVC. So focused is Onida on positioning itself on
the premium, high- tech plank that it is even planning to push its own envelope on
obsolescence, much. The strategy is aimed at further broad basing the product
offering of the company, which has largely dominated the top-end of the television
market, across multiple market segments. VIDEOCON Videocon has always been a price
player and has an image of a low price brand. This entails providing more features
at a given price vis-à-vis competitors. It has taken over multinational brands to
cater to unserved segments, like Sansui- to flank the flagship brand Videocon in
the low to mid priced segment, essentially to fight against brands like BPL,
Philips, Onida and taken over Akai- tail end brand for brands like Aiwa. Videocon
is one of the largest manufacturers of television and its components in India and
thus has advantages of economies of scale and low cost due to indigenisation. It
has the widest distribution network in India with more than 5000 dealers in the
major cities. It also has a strong base in the semi-urban and rural markets. Due
to its multi-brand strategy, it has at present multiple brands at the same price
point. This has led to a state of diffused positioning for its brands. It has also
led to a cannibalisation of sales among these brands. The flagship brand Videocon
has lost market share due to the presence of Sansui in the same segment. Because
of reduction in import duties on CPT the cost advantage of Videocon is also on the
decline. Hence it is facing rough weather and also trying to boost exports.

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Besides understanding the strategy adopted by different players, several other
factorsindustry growth, concentration and balance, corporate stakes, fixed cost,
and product differences need to be analysed to determine the extent of rivalry
between the existing Players.

3.2 The threat of potential new entrants (low)


High capital required entering into television industry, which needed large
investment on technology, distribution, service outlets and plant. Difficulty for
customers in switching cost, when they are satisfied with their current product as
well as difficultly for new entrants to have product differentiation because
customers had already familiar with those established consumer electronics
companies, therefore new entrants have to spend a lot on branding and customer
knowledge. It is difficult to obtain a license; successful applicant has to
undergo through a form of competitive evaluation, such as a comparative evaluation
process. Threat of entry is determined by the entry barriers, which act to prevent
new firms from entering the industry. A lower entry barrier makes it difficult for
the existing producers to remain profitable for long. When profits increase,
additional firms will enter the market to take advantage of the high profit levels
and over time drive down profits of all firms in the industry. When profits
decrease, some firms will exit the market, thus restoring the market equilibrium.
Barriers to entry arise from several sources: 3.2.1 Access to Distribution
Channels A strong distribution network is absolutely essential to compete in this
industry. Not only does it guarantee a country wide reach for a company’s products
but is also necessary for providing good after sales service. Videocon has
implemented ERP system, which helps in integrating the manufacturing, marketing,
procurement and distribution services with the corporate office

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LG Electronics sells in 1800 towns and cities with a population of 1,00,000 and
above. Samsung also has a widespread service network, which includes 123 exclusive
service centres and 200 distributors in any town with more than 1 lakh population.
All BPL dealers are linked via VSAT nodes, ensuring online availability of
information on inventory status and sales movement. Distribution hence is
difficult and costly as established firms dominate distribution. Large incentives
are required to gain entry into the distribution channels and further gain
recommendation to retailers from the dealers. 3.2.2 Brand Salience With little
product differentiation and parity products, it is imperative that distinct images
are created in the minds of consumers through positioning and brand building. MNCs
have been able to compress the cost of brand building by amortising the cost of
sponsoring international events across a larger footprint straddling multiple
countries. 3.2.3 Capital Investment and Economies of Scale Television industry is
capital intensive and players have made huge investments in putting up state of
the art manufacturing facilities. Videocon has seven manufacturing site in India
Sony India had a production capacity of 300,000 CTV sets with capacity utilisation
of 66%. Samsung is investing $4 mn to expand its CTV manufacturing capacity at
Noida to 800,000 units per year. The existing capacity of the plant is around
600,000 units. Other players like Mirc Electronics, LG have also set up
manufacturing facilities in India. The market players need sales volume to achieve
economies of scale, which is difficult because of large number of competitors.
Apart from investments in manufacturing the industry requires huge working capital
to manage inventories.

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Supply chain mgmt. and inventory management thus becoming crucial toDetermining
profitability. With regard to sourcing funds, MNCs are better placed Than their
Indian counterparts as they manage to get funds from their parent Companies at low
rates of interest. Huge capital requirement thus can act as barrierto entry.

3.3 Threat of Substitutes goods (low)


In Porter’s model, substitute products refer to products in other industries.there
is few substitutes from other industry if any. Most of them seem to be obsolete or
have one foot out of door. Internet though emerging as an infotainment medium is
very low in penetration. Moreover the industry has responded to the future threat
by introducing a TV that can provide functions of the Internet along with regular
features, e.g., BPL digital that includes Internet and cellular facilities.

3.4 bargaining power of Buyer (high)


The power of buyers is the impact that consumers can have on a producing industry.
Buyer power influences the prices that a firm can charge. Buyer power is
influenced by various factors as follows: 3.4.1 Buyer Concentration The industry
is akin to consumer durables whose end users are fragmented. Hence buyers do not
have any specific influence on producers. 3.4.2 Buyer Switching Cost The cost
incurred by consumer in switching from one television brand to another is
practically zero. Brand loyalty is low. Hence the companies cannot rest on their
laurels and have to be on their tenterhooks to retain the customers. 3.4.3 Price
Sensitivity Market is highly price conscious and promotion driven. With the
onslaught of VIDEOCON’s major price cuts and promotional schemes, this market has
now become a promotion driven one. To successfully compete in this industry, even
premium players like Sony, LG have had to come up with schemes. LG and Philips
have RAMAIAHINSTITUTEOFMANAGEMENTSTUDIES 14
Been the most aggressive amongst industry leaders as far as pricing is Concerned
and hence their realisation shave been lower than industry average. Industry
leaders like LG focus on low- medium priced CTV, while Samsung has Moved gradually
towards higher priced CTVs. The domestic high-end CTV prices will follow the
global price trend of declining prices. However, the Prices of domestic products
would be higher than those of global products due To negligible demand in the
domestic market and hence most likely to be met Through imports. market is highly
price sensitive as the Demand has increased with fall in prices.

3.5 Bargaining power of supplier (low)


In television industry, there is low bargaing power of Supplier’s because big
global supply chain management.there is direct negotation with supplier in order
to encourge reliable supply, faster delivery and lower price. Bargaining power
influences the cost and quality of input material. Higher supplier power raises
the input cost, thereby reducing the industry profitability. The most critical
component in manufacturing television is the picture tube. It constitutes around
50% of the cost of television. While Black and White picture tubes are made in
India, many manufacturers still need to import colour picture tubes. The other
important components include electronic circuit boards, tuners, hightension
transformers and moulded plastic casings. The demand For colour picture tubes
(CPT) has been rising steadily. But at the same time owing To customs and import
liberalisation, they had to face competition from imports During1993-1997. A sharp
reduction in import duty from 85% to 40% between 1994-96 and further down to 20%
by 2004 was announced to gear the manufacturers of picture tubes to face
competition from foreign players. As a result of spurt in Demand in 1990s, the CPT
manufacturers expanded capacities, which resulted in Excess capacity in the
domestic market. Samtel Colour, LG Hotline and JCT Electronics are the major
domestic CPT manufacturers The picture tube industry is both technology and
capital-intensive industry. RAMAIAHINSTITUTEOFMANAGEMENTSTUDIES 15
At the same time bulk orders in raw material procurement fetch more discounts,
which gives the larger players an advantage over their smaller counterparts. The
CPT, the most critical component in a CTV has no alternate use and therefore, the
CPT industry is solely dependent on CTV players, mainly domestic and partly
exports. Hence larger players like LG, Samsung and Mirc etc. are able to negotiate
better deals unlike other players.

3.6. CONCLUSION The variables affecting the industry with regard to each of the
five forces have been Categorized as favourable or adverse. Favourable 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 favourable 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 strategise 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 sensitising the larger audiences to
it. RAMAIAHINSTITUTEOFMANAGEMENTSTUDIES 16
LG and Samsung are likely to retain top positions. • 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.

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CHAPTER-2

STUDY OF THE COMPANY

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COMPANY PROFILE Brief Profile The Videocon group emerges as a USD 2.5 Billion
global conglomerate continuing to set trends in every sphere of its activities
from a conference room sized assembly line in 1979.

Today the group operates through 4 key sectors: 1. Consumer durable 2. Thomson CPT
3. CRT glass 4. Oil and gas Consumer Electronics, Home Appliances & Compressor
manufacturing in India We enjoy a pre-eminent position in terms of sales and
customer satisfaction in many of our consumer products like Colour Televisions,
Washing Machines, Air Conditioners, Refrigerators, Microwave ovens and many other
home appliances, selling them through a Multi-Brand strategy with the largest
sales and service network in India. Our compressor manufacturing technology in
Bangalore further supports refrigerator manufacturing. Display industry and its
components With the Thomson acquisition Videocon has emerged as one of the largest
Colour Picture tube manufacturers in the world operating in Mexico, Italy, Poland
and China, continuing to lead through new innovative technologies like slim CPT,
extra slim CPT and High Definition 16:9 format CPT. RAMAIAHINSTITUTEOFMANAGEMENT
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Colour Picture Tube Glass Videocon is one of the largest CPT Glass manufacturers
in the world with a high level of experience and technical expertise operating
through Poland and India. Videocon will leverage on this synergy after the Thomson
acquisition to internally source glass for its CPT manufacturing increasing
efficiencies and lowering costs. Oil and Gas An important asset for the group is
its Ravva oil field with one of the lowest operating costs in the world producing
50,000 barrels of oil per day. The group has ambitious plans for expansion in this

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BRAND-BASKET

Partner Samsung Electronics Matsushita Electric Matsushita Electric Matsushita


Electric Sansui Electric Co. Ltd

Product Fly Back, Tuners Transformers Washing Machine Air Conditioner Refrigerator
Audio Products And Colour TV

Nature Of Tie-Up Technical Support Technical * Collaboration Design & Drawing


Design & Drawing ODM for Indian Market

Techneglas Akai

Glass Shell Audio Products And Colour TV

Technical Collaboration ODM for Indian Market

Hyundai Electrolux AB Sweden

Colour TV Refrigerator, Air Conditioner and Washing Machine

ODM for Indian Market 1.ODM & Indian Market 2.Sourcing of components for Global
Market 3.ODM for Global market

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HISTORY • • • • • HomeEntertainmentSystems ElectricMotors AC Color&BWTV Washing
Machine

• •

Refrigerators Coolers

GlassShellsforCRT

• •

KitchenAppliances Crudeoil

• •

Compressor CompressorMotors

PhilipsColorTVPlantTakeOver

• •

ElectroLuxIndiaThree‐PlantTakeover ThomsonCPTAcquisition

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Ownership pattern:
Shareholding Pattern as on 31-03-2009
Number of
Sr. No

Category of shareholder

Number of shareholder s

Total number of shares

shares held in de materialized form

As a % of (A+ B) As a % of (A+B+C)

(A) (1) (a)

Shareholding of Promoter and Promoter Group Indian Individuals/Hindu Undivided


Family Bodies Corporate Sub-Total (A)(1) 13 44 57 1619838 153823583 15544342 1 0 0
0 1292950 152711452 154004402 0.87 82.6 83.4 7 0 0 0.73 69.57 70.3

(b)

(2) (a)

Foreign Individuals(NonResident Individuals/Foreign Individuals)

(b) (c) (d)

Bodies Corporate Institutions Any Other (specify) Sub-Total (A)(2) Total


Shareholding of Promoter and Promoter Group (A)= (A)(1)+(A)(2)

0 0 0 0 57

0 0 0 0 15544342 1

0 0 0 0 154004402

0 0 0 0 83.4 7

0 0 0 0 70.3

(B) (1) (a) (b)

Public shareholding Institutions Mutual Funds / UTI Financial Banks Institutions/


21 36 5 95 36571 304403 5600352 13467563 35228 291166 5599752 12706367 0.02 0.16
3.01 7.23 0.02 0.14 2.53 6.09

(c) (d)

Insurance Companies Foreign Institutional

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Investors Sub-Total (B)(1) 157 19408889 18632513 10.4 2 8.78

(2) (a)

Non-institutions Bodies Corporate 1927 5516620 4962476 2.96 2.5

(b) (i)

Individuals Individual Shareholders up to Rs. 1 lakh holding nominal share capital


342862 4685290 2998613 2.52 2.12

(ii)

Individual Shareholders holding nominal share capital in excess of Rs. 1 lakh

19

1171618

1171618

0.63

0.53

(c)

Any Other (specify) Sub-Total (B)(2) Total Shareholding (B) (1)+(B)(2) TOTAL (A)+
(B) Public (B)=

0 344808 344965

0 11373528 30782417

0 9132707 27765220

0 6.11 16.5 3

0 5.15 13.93

345022 by and which 2

18622583 8 34867863

18176962 2 34862403

100 0

84.23 15.77

(C)

Shares Custodians against Depository

held

Receipts 345024 22109370 1 21663202 5 100 100


have been issued GRAND TOTAL (A)+(B)+(C)

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Vision & Mission
Videocon’s mission: a reflection of continuity and change Videocon’s mission
expression has been crafted to envelope both extant and emerging realities: “To
delight and deliver beyond expectation through ingenious strategy, intrepid
entrepreneurship, improved technology, innovative products, insightful marketing
and inspired thinking about the future.” A breakdown of the statement above
reveals a ‘means and end’ approach, where the end is articulated at the beginning
with the means linked to it. “To delight and deliver beyond expectation…”: the end
This segment not only underlines the importance of the ultimate goal - customer
satisfaction (‘delight’) and ultimate target - the customer, but also of
intermediate processes and principals, which have contributed to building a
robust, dependable Videocon value chain (‘deliver’). As a result of its focus on
developing loyal customers and reliable associates, Videocon is able to exceed
expectations. “…Through ingenious strategy…”: the means In the cutthroat world of
today, it is only by taking recourse to advance planning and strategy that a
business can hope to survive. Although textbook strategy has its uses, reproducing
it in verbatim for the real world would be foolish because of the absence of
textbook conditions. Thus, there is a need for a bounded rationality, spontaneity
and improvisation that is flexible enough for scenarios both imaginable and
unimaginable. Videocon’s ingenious manoeuvres are actually flexi-strategy that
abstracts from shifting ground conditions and decides game plans, or sometimes
changes the rules of the game.

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“…Intrepid entrepreneurship…”: the means An enterprise with the odds stacked
against it makes great business sense. This is because higher the obstacles, lower
the number of players likely to be active in that field - thus, fetching
extraordinary returns. The only requirement is a bold and confident attitude
willing to brave the odds. Videocon’s foray into oil and gas is a bold and
intrepid endeavour that arises from immense faith on the surefooted competence of
the company’s in-house managerial talent. “…Improved technology…” the means
Technology is no more a premium input; it has become the bare minimum in recent
years. Rapid advances have only fuelled this phenomenon. Videocon is extremely
vigilant in shunting out dated technology and replacing it with the best-in-class
offers of the times. “…Innovative products…” the means Product development,
innovation and customisation are the tools Videocon uses to stay ahead of the
competition. This is because a continuous stream of innovative products excites
the market and enhances brand recall. A strategy that Videocon banks on a lot,
especially on the domestic front “…Insightful marketing…” the means The market
share battle scene has long shifted from technology and processes to the psyche of
the customer. This means that those with deeper insights into the elusive mind of
the buyer are likely to dominate. Videocon is reinforcing marketing strengths to
read better the pulse of the market and help create products that map perfectly
into customer preferences. “…Inspired thinking about the future.” the means The
future is unpredictable, but not doing anything about it is fraught with grave
risk. Videocon extrapolates future trends on the basis of current changes in
technology and preferences as well as sheer gut feel. RAMAIAHINSTITUTEOFMANAGEMENT
STUDIES 26
Corporate Governance
Company's Philosophy on Code of Governance: The company's philosophy on corporate
governance enshrines the goal of achieving the highest levels of transparency,
accountability and equity in all spheres of its operations and in all its dealing
with the shareholders, employees, the government and other parties. The company
believes in the philosophy on code of corporate governance, which provides a
structure by which the rights and responsibility of different constituents, such
as the board, employees and shareholders are carved out. In carrying out this, it
is ensured that the company\'s objectives are well defined and performance against
those objectives are adequately measured and monitored. Corporate governance is
considered as an important tool for shareholders rotection and maximization of
their long -term values. The cardinal principal such as accountability,
responsibility, transparency and fair disclosure serve as the means for achieving
this. R&D The company gives utmost importance to the R & D activities, which are
carried out, at in-house R & D center. The company carries on new innovations in
product development, cost reduction, quality improvement, process implementations,
process controls. 1) Specific areas in which R & D is carried out by the company
During the year, the company has carried out Research and Development in the
following areas. Home theaters -High-end models and HTIB Models. Larger Screen
Television i.e.32 Inch and 38inch. True Flat Televisions Plasma Televisions
Cosmetic design and new out look to the TVs Manufacturing of components for CTV,
Refrigerators and Air conditioners. RAMAIAHINSTITUTEOFMANAGEMENTSTUDIES 27
Efforts to reduce power consumption of all its final products. 2) Benefits derived
as a result of the above R& D. The company has derived the following benefits as a
result of the Research and Development: Development of new design in product and
launch of various new models. Able to compete with the foreign players in the
Indian Markets by cost reductions and offering innovation features and to maintain
market leadership in Television under Videocon umbrella. Increase in productivity.
Reduction in power consumption of some of the products. 3) Future Plans of action
In the coming days company is aiming to achieve development in the following areas
through Research & Development: Manufacturing of components for consumer
Electronics Products. Multimedia TV. Plasma Televisions. Launching of New Brands &
Sub-brands under Videocon umbrella. Composite Home Entertainment system with
internet adaptability. To work on better features, better quality & improved
reliability with reduced/low prices. Your company always attempts to use the
latest and advanced technology in production process. Keeping pace with the
technological developments, the company keeps on adding sophisticated equipments
with focus on automation to minimize manual intervention in the manufacturing
process thereby ensuring quality of the final products.

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28
Future Plans To strengthen and maintain & its leadership status, the Videocon
group has clearly charted out its course for the future. Aggressive development is
in full swing at the R & D Centres to bring out state-of-the-art technologies
including True Flat, Slim, Extra Slim, Plasma & LCDs, at the earliest. Cost
rationalization processes - are in various stages - including rationalizing
factories in Europe, increasing automation and improvement of efficiency in China,
accessing flass shells from India for international CPT facilities and a lot more
- are in various stages of implementation. Internationally all existing client
relationships are being strengthened. The cost competitiveness and increase in
capacity in Mexico and Polland has opened up big opportunities in the OEM
business. Last but not the least, in the domestic market consolidation with
multiple brands paves the way for an unassailable lead in the market. In the Oil &
Gas business, having all the basic operator capabilities of a prospecting entity,
the group is looking to add more explorations and production depth as also oil
bearing assets. The group will also get into gas distribution in India
siginificantly.

Board Of Directors
Mr. Venugopal N Dhoot Mr. Pradeepkumar N Dhoot Mr. K C Srivastava Mr. Kuldeep
Kumar Drabu Mr. Satyapal Talwar Mr. S Padmanabhan Maj. Gen. S C N Jatar Mr. Arun L
Bongirwar Mr. Didier Trutt (Nominee - Thomson S.A) Mr. Johan G Fant (Nominee - AB
Electrolux (Publ) ) Mr. B Ravindranath (Nominee - IDBI Limited) Mr. Ajay Saraf
(Nominee - ICICI Bank Limited) RAMAIAHINSTITUTEOFMANAGEMENTSTUDIES 29
ORGANIZATION STRUCTURE CHART:

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30
FUNCTIONAL DEPARTMENTS OF THE ORGANIZATION:
STORE DEPARTMENT:

Functions: 1. Purchase of all items indented by user functions like spares


Consumables etc., other than plant and equipment. 2. Registration of suppliers and
evaluation. 3. Maintenance of Stores. 4. Inventory control of stock items. 5. Co-
ordination with finance department for timely payment to the Suppliers.

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FINANCE DEPARTMENT Functions: • • To comply with legal and other requirement. To
provide information for stakeholders about financial performance and viability • •
To provide managers with information for decision-making To provide a structure to
business activity based on the careful processing of numerical data.

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MARKETING DEPARTMENT

Functions: The smooth functioning of the marketing, sales and delivery operation
Corrective actions on customer complaints New initiatives taken for sales
maximization of the company Handling relationship with personal, communicating and
reporting to the management. Developing sales programs and formulating and
designing sales polices.

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PRODUCTION DEPARTMENT Functions: Production and planning Purchasing Stores Design
and technical supports Works

Production cycle:

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AUDIT REPORT
We have audited the attached Balance Sheet of VIDEOCON INDUSTRIES LIMITED, as at
31st march 2009, Profit and Loss Account and also The Cash Flow Statement of the
Company for the year ended on that date Annexed thereto. These financial
statements are the responsibility of The Company management. Our responsibility is
to express an opinion On these financial statements based on our audit We
conducted our audit in accordance with auditing standards Generally accepted in
India. Those Standards require that we plan and Perform the audit to obtain
reasonable assurance about whether the Financial statements are free of material
misstatement. An audit Includes examining, on a test basis, evidence supporting
the amounts And disclosures in financial statements. An audit also includes
Assessing the accounting principles used and significant estimates made By
management, as well as evaluating the overall financial statement Presentation. We
believe that our audit provides a reasonable basis for Our opinion. ANNEXURE
REFERRED TO THE AUDITORS REPORT Statement referred of the Auditors Report of even
date to the Members of VIDEOCON INDUSTRIES LIMITED on the financial statements for
the Year ended 31st march 2009. (i) (a) The Company has maintained proper records
showing full Particulars including quantitative details and situation of fixed
Assets. (b) As per the information and explanations given to us, physical RAMAIAH
INSTITUTEOFMANAGEMENTSTUDIES 35
Verification of fixed assets, other than those under joint venture, has Been
carried out at reasonable intervals in terms of the phased Programme of
verification adopted by the Company and no material Discrepancies were noticed on
such verification. In our opinion, the Frequency of verification is reasonable,
having regard to the size of The Company and nature of its business. (ii) (a) As
per the information and explanations given to us, the Inventories (excluding stock
of crude oil lying at extraction site with the Operator) have been physically
verified during the year by the Management. In our opinion, having regard to the
nature and location of Stocks, the frequency of the physical verification is
reasonable. (b) Procedures of physical verification of inventory followed By the
management are reasonable and adequate in relation to the size Have the Company
and the nature of its business. (c) The Company is maintaining proper records of
inventory. As per the Information and explanations given to us, the discrepancies
noticed on Physical verification of stocks were not material in relation to the
Operations of the Company and the same have been properly dealt with in The books
of account. (iii) As per the information and explanations given to us, the Company
has not granted or taken any loans, secured or unsecured, To/from Companies, firms
or other parties covered in the register Maintained under Section 301 of the
Companies Act, 1956. (iv) In our opinion and according to the information and
explanations Given to us, there are adequate internal control systems commensurate
With the size of the Company and the nature of its business with regard To
purchases of inventory and fixed assets and for the sales of goods RAMAIAH
INSTITUTEOFMANAGEMENTSTUDIES 36
And services. During the course of our audit, we have not observed any Continuing
failure to correct the major weakness in the internal Controls systems. (v) (a).
Based on the audit procedures applied by us and according to The information and
explanations provided by the management, we are of The opinion that the
particulars of contracts or arrangements referred To in Section 301 of the
Companies Act, 1956 have been entered in the Register required to be maintained
under that section. (b) In our opinion and according to the information and
explanations Given to us, the transactions made in pursuance of contracts or
Arrangements entered in the register maintained under Section 301 of The Companies
Act, 1956 and exceeding the value of Rupees Five lakh, in Respect of any party
during the year, have been made at prices which Are reasonable having regard to
prevalling market price at the relevant Time. (vi) The Company has not accepted
any deposits from the public within The meaning of the provisions of Section 58A
and 58AA or any other Relevant provision of the Companies Act, 1956 and rules made
there Under. (vii) In our opinion, the Company has an internal audit system
Commensurate with its size and nature of its business. (viii) The Central
Government has prescribed maintenance of the cost Records under Section 209(1)(d)
of the Companies Act, 1956 in respect Of the Companys products. As per the
information and explanations Provided to us, we are of the opinion that prima
facie, the prescribed Records have been made and maintained. We have however not
made a Detailed examination of the records with a view to determine whether They
are accurate or complete. RAMAIAHINSTITUTEOFMANAGEMENTSTUDIES 37
(x) There are no accumulated losses as at 31st march 2009. The Company has not
incurred any cash losses during the year covered by our Audit and the immediately
preceding financial year. (xi) Based on our audit procedures and the information
and explanations Given by the management, we are of the opinion that the Company
has not Defaulted in repayment of dues to financial institutions, banks or to
Debenture holders during the year. (xii) The Company has not granted any loans
and/or advances on the basis of security by way of pledge of shares, debentures
and other securities. (xvi) The term loans raised during the year were applied, on
an overall basis, For the purposes for which the loans were obtained. (xvii) The
balance sheet of the Company, we report that the Company has Not used funds raised
on short-term basis for long-term investments. (xix) The Company has not issued
any secured debentures during the Year. The Company has created security in
respect of debentures issued In earlier years. (xx) During the year the Company
has not raised any money by way of Public issue. (xxi) According to the
information and explanations given to us, no Fraud on or by the Company has been
noticed or reported during the

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CHAPTER-3

SWOT ANALYSIS

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SWOT Analysis
Strengths 1. Videocon has largest distributed capacity manufacturing base across
India with 17 facilities and plant in china, Poland, itally, Mexico. 2.
Manufacturing capacity is 1, 40000 units. 3. Videocon has a network of 400 plus
service and 85 mobile service vans to give better service to their customers. 4.
Tie up with the Matsushita electric company of Japan add to the goodwill of
Videocon 5. Customers are aware about Videocon’s products. 6. Company has good
brand name. 7. Strong backward integration 8. Videocon has largest distribution
manufacturing based across in India. 9. Large brand basket 10. Multi brand
strategy 11. 3rd largest picture tube manufacture in India 12. Cheap price. 13.
Globally acceptance. Weaknesses 1. Less investment on advertisement of Videocon
CTV 2. Fewer margins to the distributor/dealer. 3. Weak promotional strategy of
CTV. 4. No proper approach of target customer. 5.wide brand basket, which might
lead to conflictof interest unless Effectively managed 6.CRT technology is losing
popularity. 7.less focus on unconventional channel. 8. Not providing good service.
9.No exclusive show rooms RAMAIAHINSTITUTEOFMANAGEMENTSTUDIES 40
Opportunities 1. Videocon takes over the Electrolux. 2. Videocon buy Thomson color
picture tube manufacturing plant. 3. Videocon international is going global. 4.
Videocon exploring whole new segment 5. 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. 6. Growing semi urban market.
7. Industry is in increasing phase. 8. Price has come down; now more and more
people are going for it. 9. Due to financial facilities even the medium segment is
going for it. 10. Purchasing power of people is increasing day by day. Moving into
new attractive market segments. 11. Focused on unconventional channels. 12.
Mergers joint venture of strategic alliances. Threats 1. Entrance of global
competitor like china. 2. Brand loyalty is more of LG &other company. 3. Market
condition like slumps in market. 4. A new competitor in your home market. 5.
Competitor has a new innovative substitute product or service. 6. Increased trade
barrier. 7. Brand reputation is not good. 8.Competition in global CPT market
especially from integrated players such as LGPhillips, Samsung, and Matsushita is
intense.

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CHAPTER-4

LEARNING EXPERIENCE

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LEARNING EXPERIENCE
1. During the project training in the market, I understand how it works
practically from start point to end point. Before that I have only theoretically
idea of marketing management. 2. It is great experience to see these entire things
happen infront of eyes. It level. 3. I have also learnt how corporate world
functions and the importance of discipline in your work life. 4. My manager
supperted me in gaining sufficient knowledge about the companyand industrythis
help me complete the project successfully. 5. I have learned about the videocon
products esp. television which are sales in India 6. I have learned about sales
procedure of company. 7. I have learned about the competitors of videoco
8.I became much more confidant and the experience has helped

enhances my practical knowledge from one level to another

me to brush my communication skills. 9. Apart from this entire thing it gives me


real picture about supply chain. I visited each department & it is good learn
experience to me when employees share their experience for the organization to
achieve the goal. 10. I have learnt that to convince someone what is required is
complete knowledge of your product and how will it benefit the client
11. The training was informative & educative. It was a practically

exposure to me. Observe different strategies adopted by company and its


competitors. (Low price, quick delivery, good service) RAMAIAHINSTITUTEOF
MANAGEMENTSTUDIES 43
CHAPTER-5

RESEARCH METHODOLOGY

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44
5.Research problem
Problem Statement • The problem of this project is to know that to what level
customers are enjoying and aware of videocon TV offered by the company and what
further improvement can be done in future in this area so as to get brand
awareness. The main objective how to increase the reputation of videocon brand in
the market By this project I want to Create brand awareness of videocon so it help
in seller in following way: Videocon brand name makes it easier for the seller to
process orders and tract down problems. • • • • • Videocon brand name provides
legal protection of unique product features. It become well-known brand helps the
seller in segmenting the market. Brand loyalty of videocon brand gives seller some
protection from competitors and greater control planning. Good videocon brand
awareness helps in building the corporate image. Videocon brand awareness gives
warranty of quality and satisfaction in the mind of the customers.

RAMAIAHINSTITUTEOFMANAGEMENTSTUDIES

45
Videocon brand awareness helps buyers / consumers in following

ways

Brand awareness helps shoppers in moving quickly through super market or retail
store and helps in making quick decisions.

• • • •

For customer the videocon brand is Easy to identify and recognize It should be
distinctive and create a good imagein customer mind. Should be capable of being
registered and protected legally. A deep brand must have Brand Equity.

Research methodology Research methodology is considered as the nerve of the


project. Without a proper well-organized research plan, it is impossible to
complete the project and reach to any conclusion. The project was based on the
survey plan. The main objective of survey was to collect appropriate data, which
work as a base for drawing conclusion and getting result. Therefore, research
methodology is the way to systematically solve the research problem. Research
methodology not only talks of the methods but also logic behind the methods used
in the context of a research study and it explains why a particular method has
been used in the preference of the other.
RAMAIAHINSTITUTEOFMANAGEMENTSTUDIES 46
5.2. Research design: Research design is important primarily because of the
increased complexity in the market as well as marketing approaches available to
the researchers. In fact, it is the key to the evolution of successful marketing
strategies and programmers. It is an important tool to study buyer’s behavior,
consumption pattern, brand loyalty, and focus market changes. A research design
specifies the methods and procedures for conducting a particular study. According
to Kerlinger, “Research Design is a plan, conceptual structure, and strategy of
investigation conceived as to obtain answers to research questions and to control
variance. The General study was converged as a specific study for videocon. The
study was initiated to find out the consumer profile, brand perception and cross
preference among videocon and Competitor brands. Our approach to the research
design tasks went through the following tasks. Information needed ? Measurement
and scaling Procedures ? Appropriate Data collection ? Sampling Process and sample
size ? Data Analysis plan
RAMAIAHINSTITUTEOFMANAGEMENTSTUDIES 47
These issues are addressed as the following Research Type Data Type Research Tools
Descriptive Research Primary and Secondary data Questionnaire Observation Enquiry
◊ ◊ ◊ ◊ Sampling Units Sample Size Sampling Method Sample drawn from
customer/Dealers/ Retailers Customer (100)/Dealers/ Retailers (50) Random Sampling
Method Jaipur

◊ ◊ ◊

5.3.Type The data collection was done through 1. Secondary Data Analysis 2. Survey
Secondary data is obtained by contacting the retailer and dealers. 5.4.Scaling
Techniques We asked the customers to rank the various attributes on a scale of
very important, Important and not very important. To find-out the brand perception
of various brands, paired comparison between them is used.

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48
5.5.Questionnaire Design Questionnaire design was the critical issue as the
questionnaire reflects the survey purpose .The questionnaire was meticulously
prepared by identifying the various variables. The same scale of yes/no and very
important, important and not so important was used through out so as to make the
respondent comfortable. Firstly a questionnaire was prepared and few people were
surveyed. After this survey we realized the flaws in the questionnaire and then a
modified questionnaire was prepared and people were surveyed on this modified
questionnaire. 5.6 Sampling Techniques In the survey conducted, the sample was
random in nature comprising of people from different age groups and income
stratas. 4.7.Data Collection Data collection is the important step after the
sample is selected on which the survey is being conducted. With data that is
available in the hard form we converted that to electronic form, to analyze the
data using the MS Excel softwares. In the data collection customers were
approached during the working hours at dealers point.

The first part of the survey was a disguised survey was there was no mention of
videocon as Organization. It was conducted as a part of institute project. Purpose
of the survey was explained and was asked
RAMAIAHINSTITUTEOFMANAGEMENTSTUDIES 49
whether they are interested to take part in the survey Later Questionnaire was
handed over to them, and necessary instructions were given to complete the
questionnaire .The questionnaires were returned back after filing up on their
convince, While receiving the filled in questionnaire care was taken to check
whether there are any unfilled items in the questionnaire. 5.8. Data Analysis The
data of score of features and score of brand perception was fed into the excel
sheet. Separate Excel sheets were employed for analysis of each brand and also to
keep it concise and unambiguous. For data analysis I use many types of charts: •
Pie chart: This is very useful diagram to represent data, which are divided into a
number of categories. This diagram consists of a circle of divided into a number
of sectors, which are proportional to the values they represent. The total value
is represented by the full create. The diagram bar chart can make comparison among
the various components or between a part and a whole of data • Bar chart: This is
another way of representing data graphically. As the name implies, it consist of a
number of whispered bar, which originate from a common base line and are equal
widths. The lengths of the bards are proportional to the value they represent.

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50
5.9 Limitations of Survey Response Errors - These may arise when the respondents
give inaccurate or incomplete answers. For e.g. in our survey a respondent may not
mention that he had test driven a car before purchasing it A major problem faced
in the survey involved the comparative ratings of various attributes for all the
brands of cars. Many of the respondents were not very willing to rank so many
factors as they perceived it to be time consuming. Open Ended Questions – All the
questions in the questionnaire were open-ended to avoid any kind of bias from the
respondents end. But a drawback of this approach is that there was an incomplete
capture of his responses, as the respondent could not always ome out with the
purchase steps and the time taken in them. The reasons for such inaccuracy could
be because of unfamiliarity, fatigue, boredom, faulty recall and the Question
format. Random Sampling Errors – This can occur, as the particular sample selected
is an imperfect representation of the population of interest. The area covered in
the survey was jaipur region and the customer preferences and tastes in different
Regions could not be covered.

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CHAPTER-6

FINDINGS AND ANALYSIS

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52
Demographic profile Gender profile Male 28% Female 72%

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53
FAMILY-INCOME

• Income group determines the sector in which a company wants to foray and be a
market leader; also knowing the income level of the customer will help the company
to modify the products according the buying capability of the customer, which
depends upon the Income level. • Here we have divided the customers according to
Monthly Income and found that the most of the consumer income is below Rs10000,so
they prefer only less costly television. • There is also good amount of people of
high income (Rs 350000+) • Here I can infer that there is all income level people
available in this segment so company need a good product range.

OCCUPATION DISTRIBUTION

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54
Inference:
This diagram show that most of the people occupation is private service.
• • •

Also good amount of business man available here. By this we can know about
difference in preference. By knowing occupation distribution clearlythe company
can segment and target customer according to their occupation.

RAMAIAHINSTITUTEOFMANAGEMENTSTUDIES

55
Awareness about videocon, SAMSUNG & LG by Customers (Given in percentage form)

From the above pie – charts, it is clear that most of the customers (62%) of
Videocon came to know about Videocon through TV advertisement as compare to
customers of Samsung and LG. As far as print media ad is concerned, only few
customers came to know about Videocon through print media ad as compare to
customers of Samsung & LG. But no customers of Videocon came to know about
Videocon through hoardings and billboards, but few customers came to know about
Samsung & LG through hoardings and billboards. Hence, we can infer that Videocon
is doing positioning through TV advertisements rather than through print media ad
and hoardings and billboards. They should more focus on word to mouth marketing
because they are weak in this. RAMAIAHINSTITUTEOFMANAGEMENTSTUDIES

56
Why videocon, SAMSUNG or LG? (Given in percentage form)

Inference From the above figures, it indicates that people give more preference to
price as compare to other attributes (Like Brand & Quality) while buying the
Videocon products. good at videocon . Hence, we can infer that LG & Samsung are
strong brand and having more quality than Videocon (as given in Table and Pie-
chart). Also, LG & Samsung products are more expensive than Videocon. we observe
here that service is not

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57
From where you prefer buying consumer durables  Co.shoppee  Showroom 
Exhibitions  On-line

Inference: 1. A majority of customers prefer to buy from co.shoppee. Very less


proposition of customers buys from Online and Exhibitions. 2. 49% customers are
prefer to by from the showrooms because the showrooms are more convenient to
customers they also think that these shops give more discounts. 3. People are less
interested to buy from the exhibition they only visit the exhibition for price
quotation of the product and the comparison of the product.
RAMAIAHINSTITUTEOFMANAGEMENTSTUDIES 58
You prefer to buy from the same as you have mentioned in above que. Because of
following reasons  Attractive Price  Service  Demonstrations  Offers 
Convenience

Inference 1. Customers buy from showrooms because of the service and convenience.
These are two main factors. 2. Customers are preferred to buy from the showroom
because of they think that these convenient store may provide good after sell
service. 3. Customer also thinks that there is more chance to bargain and they can
get more discounts in these showrooms. 4. Price also a factor that attracts the
customer in these showrooms. RAMAIAHINSTITUTEOFMANAGEMENTSTUDIES 59
Do you prefer any financial scheme to purchase consumer durable?  Yes  No

Inference 1. Majority of the consumer donot want to go for financial scheme. 2.


16% consumer is not a small amount, there is only t.v.few company which provide
financial scheme 3. If t.v. Company easily provide this scheme to consumer so they
can attract more customer.

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60
Would you wait for festive season for available discounts for purchase a
Television?  Yes  No

Inference

By this we can infer some customer prefer to buy t.v. on some festival. North
India is more belive in festival. On festival company can attract customer by give
some typa of discount .

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Up to how much money are you willing to spend on a t.v? at this time: a) Less than
6000 b) 6000-13000 c) 13000-20000 d) 20000-30000 e) more than 30000

Inference:
By this diagram I can infer than most of customer are see price, if company
provide some good product with more features and style and design it will help in
increse market share. Some customers are want to spend a big amount of money on
t.v. these customer don’t care money because of high income so company also need
to work on R&D, so company can provide a different product.

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How do you feel after using the videocon t.v? a) Excellent b) Good c) Fair d) Poor

Inference There is 19% customer who not satisfies with product and feels poor
about the t.v. Company has to find out all the reason and should work on it. If
company don’t attarct old customer this will become a big threat for company.

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CHAPTER-7

FINDING
AND

RECOMMENDATIONS

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Dealer survey Findings 1. By calculating the display share we found that in most
of store VIDEOCON has 24% display share almost all categories. 2. By the actual
monthly sale of particular store we came to know the capacity of the store and how
much product can they sale. 3. 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. 4. We also came to know
while visiting the shops that there was big problem of after sale service. 5. Many
dealers were facing the problem of after sale service because there is no follow
up calls from VIDEOCON. 6. Demo calls also not done properly. 7. Videocon is on
3rd rank in jaipur CTV. 8. Sales promotion scheme are sufficient. 9. Pricr range
preferred by consumer is generally in between 70000 to 13000. 10. Dealer are not
satisfied with the incentive provided by the company 11. The top competitor of
VIDEOCON product in Jaipur is LG and SAMSUNG. 12. In Jaipur area the performance
of VIDEOCON is in better position but the competitor also hold closer margin. 13.
There is high growth of sale in market due to booming in new technology and better
service.

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14. Word of mouth plays a vital role in awareness among customer. This is one
factor, which can play a good role in promotion of products as well as
demonstration given by the shopkeeper also plays a vital role for customer. 15.
Marketing growing so that is good sign for company in coming year. 16. Consumers
are mostly gets attracted by the price discount offered by company and product
warranty

RECOMMENDATIONS AND SUGGESTIONS 1. VIDEOCON should improve it’s after sale service
because its hits badly VIDEOCONs market share in Jaipur region. 2. More detailed
customaries service is to be provided. 3. The training to in shop demonstration
should be given at frequent time interval and feedback should be considered
positively. 4. The company should look into the matter of person hiring for in
shop demonstration. A big VIDEOCON showroom should have at least 2 such kind of
person. 5. VIDEOCON should try new dealer who have the potential. So they can
target more market. 6. As there is a bottleneck competition between Samsung and
VIDEOCON, it is necessary to take measure steps to overcome the area of downfall
in VIDEOCON with respect to Samsung. 7. The marketing managers should make better
relations with dealers and reputation of the company. 8. Customer considers
quality as their first preference, so the company should give more stress on this.
9. The switching of customer from VIDEOCON product to other brand is due to the
bed after sell service in shop. RAMAIAHINSTITUTEOFMANAGEMENTSTUDIES 66
10. The product is well aware and it is on top of mind of customer. So company
should always improve services and update their technology.

CUSTOMER SURVEY FINDINGS 1. Secondary supports play an important role in the


customers mind and create awareness among the customers. The secondary support
includes Demonstration, Exhibition & Even Sponsors. 2. From the survey it was
found out that the majority of customers don’t buy consumer durables from
exhibitions. They just visit the exhibitions to see the co. latest model. 3. 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. 4. Also
majority of customers do not want any financing scheme for purchasing the
durables. 5. There was heavy rush on weekends so large numbers of ISD’s were
appointed that day. Also the live demo calls helps in selling. Exchange offers
also generate sale. 6. Customers are also now very choosy in buying the product
and it is important for the company to make loyal customer of their brand. 7. In
survey we found that VIDEOCON has captured maximum market share in every category.
VIDEOCON dominates CTV, LCD, and Refrigerator, and Washing machine, category.
RAMAIAHINSTITUTEOFMANAGEMENTSTUDIES 67
8. The product is well aware and it is on top of mind of customer. 9. Customers
are also now very choosy in buying the product and it is important for the company
to make loyal customer of their brand. 10. Spending on advertisment and publicity
of less as compare to the competitors. There is need to increase advertisement.
Consumer prefers electronic media for advertisement and retailer also prefer TV
advertisement. 11. The quality of videocon CTV is acceptable to the market.
Consumer and retailer both are satisfied with the quality of videocon CTV. 12.
Consumers are mostly gets attracted by the price discount offered by company and
product warranty. 13. The categories of the people who are using the CTV are
mostly economic income people. 14. LG and samsung are competitors of videicon ‘s
CTV. 15. Consumers are aware about videocon TV. 18.Customer perception about
videocon TV is good. 16. Advertising of videocon CTV is not striking as compaer to
the competitors

RECOMMENDATIONS AND SUGGESTIONS

Exhibitions do not help to generate so much sells but they should be conducted
regularly. This helps in generating awareness regarding the product in customers,
which ultimately helps in sales.

Also it is helps in advertising for the new products. Like in this exhibition new
LCD was advertised. Company should always focus on service.

RAMAIAHINSTITUTEOFMANAGEMENTSTUDIES

68

Display share should be increased where there is less than 50% as VIDEOCON also
believes that “JO DIKHTA HAI WO BIKTA HAI”.

Company should try to improve service. No doubt the company products have
technically edge over competitors but in long run it may hamper the company’s
profit.

Company should concentrate more on its major drivers LCD, IT, and GSM. Branding
and promotions should be done effectively as it creates a long lasting image in
the mind of customers.

Company should also cater to the needs of sub dealers as some of the sub dealers
have potential of high sales.

CONCLUSION Jaipur market is still a virgin market for these techno-survey Videocon
products. Customers need to be made aware of the productive usages of these
products if Videocon want to target these untapped market segments of customers
and rural customers. Also Videocon need to modify their advertising strategies in
order to promote these products and services. This also a challenge for Videocon,
for a positive thinking about Videocon Hence Videocon need to work upon the real
factor through Dealer and Retailer for a KAIZEN continuous productivity in these
products will make these products more friendly and customized. Hence Videocon
will be able to win a major market share between the competitors.

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ANNEXURE

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DEALERS QUETIONARIES Dear Sir/Madam, I, student of RIMS (ramaiah institute of
management studies) Bangalore am conducting a survey for the television industry.
We request your kind cooperation 1. Name of the Dealer/Retailer……………………………… 2.
Address……………………………………………………………… ………………………………………………………………………… ………………………………………. 3.
Mention the brand name of the T.V presents in your Showroom? 1 2 3 4 5

4. What are the ranges of price that the company


offers? ..........................................................................
...................................................... ...........................
................................................................. 5.Rank the
various brands in order of their selling 1 2 3 4 5

6.Why the rank 1) Product is sold high? a) Less Price b) Design and style c) Good
brand image [ ] [ ] [ ]

d) Good product features [ ] e) After Sales Services f) Durability [ ] [ ] 71

RAMAIAHINSTITUTEOFMANAGEMENTSTUDIES
7.Why the rank 2) Product is sold high? a) Less Price b) Design and style c) Good
brand image [ ] [ ] [ ]

d) Good product features [ ] e) After Sales Services f) Durability [ ] [ ]

8.Why the rank 3) Product is sold high? a) Less Price b) Design and style c) Good
brand image [ ] [ ] [ ]

d) Good product features [ ] e) After Sales Services f) Durability [ ] [ ]

9.What more can the company do to increase its sales?


……………………………………………………………………………… ………………………………………………………………………… 10. According to you
which company has the best marketing strategy? ………………………………………………………………………………
………………………………………………………………………… 11.Any Suggestions:………………………………………………
…………………………………………………………………………… …………………………………………………………………………… RAMAIAHINSTITUTEOF
MANAGEMENTSTUDIES 72
CONSUMER SURVEY QUESTIONNAIRE Dear Sir/Madam, I am student of RIMS (ramaiah
Institute of Management studies) Bangalore and as part of our curriculum I am
conducting a market research. I would like your cooperation for the same, with an
assurance that all the information, which you’ll give, will remain confidential.
Customer’s personal profile: 1. Name…………………………………………………………………………. 2. a) Age ( In
years ) : ……………………………………............................ b) Gender (please tick) :
Male / Female 3. Educational Qualification…………………………………………………….. 4. Address.
……………………………………………………………………… ……………………………………………………………………………......….. 5. What is your
occupation? a) Business c) Pvt. Service 6. What is your monthly income? a) Below
Rs 10000 b) Rs 15,000-25,000 e) Rs 35000+ Consumer Survey for various Brands of
television: 1. Which of the company’s products would you prefer to own? a)
Videocon c) BPL b) LG d) ONIDA e) samsung b) Rs 10000-15,000 d) Rs 25,000 -35000
b) Govt. Service d) student e) others

f) Others (please specify) ……………………………………… RAMAIAHINSTITUTEOFMANAGEMENTSTUDIES 73


2. Why you prefer this company product? …………………………………………………………………………… 3. What were
the factors that persuaded you to come to your chosen brand? a) Company
advertisements: b) Talk to friends and colleagues c) Dealer’efforts d) Any other;
please specify ……………… 4.Do you prefer any financing scheme to purchase consumer
durables? a) Yes b) NO 5. While purchasing consumer durable which parameter
influences you? (Please rate the following sources of information) Price. Brand
Image Service. Durability ……………………… ……………………… ……………………… ………………………

Product feature ………………………

Design and style ................................. 6. From where you prefer buying


consumer durables? a) Co.shoppee b) Showroom c) on-line d) exihibition 7.You
prefer to buy from the same as you have mentioned in Q.6 because of following
reasons? a) Attractive Price b) Service e) Convenience 8. Up to how much money are
you willing to spend on a t.v? At this time: a) Less than7000 d) 25000-35000 b)
7000-13000 e) more than 25000 c) 13000-25000 c) Demonstrations d) Offers

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74
9. Would you wait for festive season to avail discounts? a) Yes b) No 10. Which TV
Channels do you watch on a regular basis? …………………………………………………………………………………………
………………………………………………………………………………………… 11. Which Newspaper/Magazines do you read?
………………………………………………………………………………………… …………………………………………………………………………………………. 12. How do
you feel after using the videocon t.v? a) Excellent b) good c) fair d) poor

13.Any other comments. ……………………………………………………………. ...


……………………………………………………………………………………… ………………………………………………………….. …………………………… Thank you
for participating in the survey

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REFERENCE: Books • • • Website: • • • • Http: www.videconworld.com http:
www.google.com http: www.wikipedia.org Philip Kotler, Marketing Management, 13 t h
Ed,

Princeton – Hall India 2009 Marketing Research – Naresh K. Malhotra Business


research method- S. N. Murthy

www.in.lge.com

Magazines • Business today • Business world Newspapers • Economic Times • Times of


India
I AM ASHOK KUMAR A MBA STUDENT PLEASE WRITE ME CORRECT FEEDBACK ABOUT MY PROJECT.
ID

ashokjky@gmail.com

ask_lucky1987@yahoo.com Thanks…all the best

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