You are on page 1of 14

Contents Industry overview Competitors Introduction History Product Country Vision and Mission Marketing strategy(4 ps) Balance

sheet Ratio analysis Marketing survey Questionnaire

Design of study ITRODUCTION Videocon the Indian multinational, also known as the desi brand favorite among India ns in terms of electronic appliance shopping. It known its people from their ner ves as they share the same roots. Since year, Videocon has been nurturing Indian homes and ruling their hearts. The company has always served its country with l atest technology, environment friendly features and prices according to the citi zens. Its popularity among Indian makes it makes it the major shareholder of the electronic industry Technical tie up with Toshiba Corporation of Japan, he launched Indias first Worl d- class color television. The path-breaking attitude of him and his son has mad e Videocon a household name across the nation, and it is the no. 1 brand of cons umer electronics and home appliances. As a whole, the company deals in consumer durables. The company basically deals in wider range of appliance like plasma TV , LCD TV slim TV flat TV, conventional DVD, multimedia speakers Frost free Refrigerators, Direct cool refrigerator, Fully Automatic Washing Mach ine, semi-automatic washing machine, micro Ovens, spilt Air conditioners, grace cassette Air conditioners and window Air conditioners, having matchless quality. The Videocon group egresses as a USD 2.5 Billion global conglomerate which acts as trendsetter in every sphere it is dealing in and enjoys a leading position i n terms of sales and customer satisfaction in all consumer products. The Videoco n logo itself the attributes of the company, which are much dedicated towards th e growth and maintenance of the set standards of excellence through quality, tec hnology and innovation. From about a decade now, Videocon affirms its passion fo r global impact and the groups wide spectrum ranging from Electronics to Energy Videocons mission tells us about both existing and emerging realities: To delight and deliver beyond expectation through ingenious strategy, intrepid entrepreneur ship, improved technology innovative products, insightful marketing and inspired thinking about the future The statement means Videocon dotes upon customer satisf action, make reliable customer, despite this cutthroat competition, advances pla nning, and strategies will fail all odds and obstacles and will deliver the best of product and energy So bring home the desi brand, who very well understand the desi needs and rules your hearts.

SCOPE OF THE STUDY The scope of the study is limited to marketing activity of Videocon in Mangalore . It will give an in depth theoretical and practical knowledge about the marketi

ng aspects. This study also covers ratio analysis, of the balance sheet of the c ompany and also analyses the marketing activity of the company. The study offers an insight into the industry. OBJECTIVES OF THE STUDY 1. To know the services providing by the videocon 2. To study the consumers attitudes towards Videocon 3. To know the factors influencing the purchase decision. 4. To suggest measures to improve sales and service. 5. The brand loyalty among consumers METHODOLOGY OF THE STUDY Methodology of Data Collection The data collection is done by using both primary and secondary sources. The primary sources used are Discussions with the retailers Questionnaire was prepared for survey The secondary sources includes Articles on websites, research reports, the reports from various Visiting official website of the company and other related websites. Referring to news papers and various business magazines.

LIMITATIONS OF THE STUDY There are some factors which, if present would have resulted in a more detailed study. Still proper measures are taken in maintaining the quality of the study. Those limitations areThe study is limited to the marketing activities of Videocon only in Mangalore.. The data recorded was presumed to be authentic The study is designed in such a way that proper research is done in the selected area within the given time. Industry profile Consumer electronics are electronic equipment intended for everyday use, most of ten in entertainment, communications and office productivity. Radio broadcasting in the early 20th century brought the first major consumer product, the broadca st receiver. Later products include personal computers, telephones, MP3 players, audio equipment, televisions, calculators, GPS automotive electronics, digital cameras and players and recorders using video media such as DVDs, VCRs or camcor ders. Increasingly these products have become based on digital technologies, and have largely merged with the computer industry in what is increasingly referred to consumerisation of information technology. The CEA (Consumer Electronics Association) estimates 2007 US Consumer Electronic s sales at 150 billion dollars.[1] Consumer electronics are manufactured throughout the world, although there is a particularly high concentration of headquarters, factories, research and develop ment activity in East Asia, especially in Japan.[2] The latest consumer electron ics are previewed yearly at the Consumer Electronics Show in Las Vegas, Nevada, at which many industry pioneers speak. Trends One overriding characteristic of consumer electronic products is the trend of ev er-falling prices. This is driven by gains in manufacturing efficiency and autom ation, lower labor costs as manufacturing has moved to lower-wage countries, and improvements in semiconductor design. Semiconductor components benefit from Moo re s Law, an observed principle which states that, for a given price, semiconduc tor functionality doubles every two years.

While consumer electronics continues in its trend of convergence, combining elem ents of many products, consumers face different decisions when purchasing. There is an ever increasing need to keep product information updated and comparable, for the consumer to make an informed choice. Style, price, specification and per formance are all relevant. There is a gradual shift towards e-commerce web-store fronts. Many products include Internet connectivity using technologies such as Wi-Fi, Bl uetooth or Ethernet. Products not traditionally associated with computer use (su ch as TVs or Hi-Fi equipment) now provide options to connect to the Internet or to a computer using a home network to provide access to digital content. The des ire for High definition (HD) content has led the industry to develop a number of technologies, such as WirelessHD or ITU-T G.hn, which are optimized for distrib ution of HD content between CE devices in a home. Environmental impact Standby power used by consumer electronics and appliance while they are turned o ff accounts for 5 to 10% of household energy consumption, adding an estimated $3 billion to annual energy costs in the USA. "In the average home, 75% of the ele ctricity used to power home electronics is consumed while the products are turne d off

Industry overview Videocon Date of Establishment 1985 Revenue 3261.68 ( USD in Millions ) Market Cap 52195.48248525 ( Rs. in Millions ) Corporate Address 14 Km Stone,Aurangabad - Paithan Road,Village Chittegaon Taluka - PaithanAurangabad-431105, Maharashtra www.videoconindustries.com Management Details Chairperson - Venugopal N Dhoot MD - Venugopal N Dhoot Directors - Ajay Saraf, Arun Laxman Bongirwar, B Ravindranath, Birendra Narain S ingh, Didier Trutt, Girish Nayak, Gunilla Nordstrom, Johan Fant, Karun Chandra S rivastava, Kuldeep Drabu, Pradipkumar N Dhoot, Radhey Shyam Agarwal, S C N Jatar , S Padmanabhan, Satya Pal Talwar, Venugopal N Dhoot, Venugopal N Dhoot, Vinod K umar Bohra Business Operation Consumer Durables - Electronics Background Videocon Industries, established two decades ago, is a global co nglomerate with market capitalization of $2.5 billion. Videocon s businesses con sists of manufacturing, marketing & distribution of consumer electronics product s and oil & gas extraction. Videocons R & D centres are developing technologies that include True Flat, Slim, Extra Slim, Plasma & LCDs. It want to m Financials Total Income - Rs. 144526.77 Million ( year ending Dec 2010) Net Profit - Rs. 7446.94 Million ( year ending Dec 2010) Company Secretary Vinod Kumar Bohra Auditors Khandelwal Jain & Co, Kadam & Co

On May 23, 2008, Videocon announced that it is studying an invitation from Gener al Electric (GE) to bid for its century-old appliances division, which it has pu t up for sale You can view name of Chairman, CEO, CFO, Management Team, Board of Directors and Key Executives of Videocon Industries Ltd. Management Name Designation A K Modani Sr. Vice President

Abhijit Kotnis Associate Vice President Chandramani Singh Vice President Girish Nayak Nominee Director Gunilla Nordstrom Nominee Director Jaideep Rathore Sr. Vice President K R Kim Chief Executive Officer Karun Chandra Srivastava Director Pradipkumar N Dhoot Whole Time Director Radhey Shyam Agarwal Director Rahul Sethi Vice President S C N Jatar Director S Padmanabhan Director Satya Pal Talwar Director Shekhar Jyoti Vice President Venugopal N Dhoot CEO Venugopal N Dhoot Chairman and Managing director Vinod Kumar Bohra Company Secretary & Compliance Officer Vinod Kumar Bohra Secretar

HISTORY Videocon Industries, established two decades ago, is a global conglomerate with market capitalization of $2.5 billion. Videocon s businesses consists of manufac turing, marketing & distribution of consumer electronics products and oil & gas extraction. Videocons R & D centres are developing technologies that include True Flat, Slim, Extra Slim, Plasma & LCDs. It want to market these products at the earliest. In the Oil & Gas business, company has all the basic operator capabilities of a prospecting entity, it is looking to add more explorations and production depth as also oil bearing assets. The group will also get into gas distribution in Ind ia significantly. The company operates in four key sectors:Consumer Electronics, Home Appliances & Compressor manufacturing: It produces co

nsumer products like color televisions, washing machines, air conditioners, refr igerators, microwave ovens and many other home appliances, selling them through their sales and service network in India. It has in house compressor manufacturi ng technology for Refrigerators . In India the group sells consumer products like Color Televisions, Washing Machi nes, Air Conditioners, Refrigerators, Microwave ovens and many other home applia nces, selling them through a Multi-Brand strategy with the largest sales and ser vice network in India. In India after LG entering into market Videocon was not a ble to stand in market with such a tough Competitor and it has seen a down fall in profits and faced a huge loss Display industry and its components: By acquiring Thomson SAs color picture-tube manufacturing business which is spread across China, Poland, and Mexico, Videoc on is able to improve the technology in existing products in slim tube, plasma, LCD, and other flat-panel display lines as well as create new innovative product s. Color Picture Tube Glass : Videocon is one of the largest Color Picture Tube (CP T) glass manufacturers in the world with a high level of experience and technica l expertise operating through Poland and India. Videocon produces a superior ran ge of panels and funnels to meet the demand for large-size, flat, and slim CRT d isplay products. 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 sector globally. Mobile Phones In November 2009 Videocon launched its new line of Mobile Phones[4]. Videocon ha s ever since launched a no. of Innovative handsets ranging from Basic Colour FM phones to High End Android Devices. And in February 2011, Videocon Mobile Phones launched the revolutionary concept of ZERO paise per second with pre-bundled si mcards of Videocon mobile services along with 7 of its Handset Models DTH Videocon d2h In 2009, Videocon launched its DTH product, called d2h . As a pioneering offer in the Indian DTH market, Videocon offered LCD & TVs with built-in DTH satellite receiver with sizes 19" to 42". This concept in the DTH service is relatively n ew in the presence of other players like ZEE tv s Dishtv, Tata Sky, Air tel Digi tal Tv and Reliance s BIG TV providing only the set top box.

Telecommunication Videocon Telecommunications Limited has license for mobile service operations ac ross India. It launched its services on 7 April 2010 in Mumbai With strategically located manufacturing bases and an enviable distribution netw ork of around 90 branch offices, 10,000 distributors & 400 after-sales service c entres across lndia, company enjoys a unique 80% plus penetration in the market place. Videocon is doing cost cutting in various stages, which includes factories in Eu rope, increasing automation and improvement of efficiency in China, and a lot mo re - are in various stages of implementation. Videocon Group of Companies has been awarded SAP ACE 2007 Awards for Customer Ex cellence Acquisition of Thomson SA Videocon through its Wholly Owned Offshore Subsidiary acquired the Color Picture Tube (CPT) businesses from Thomson S.A having manufacturing facilities in Polan d, Italy, Mexico and China along with support research and development facilitie s. Acquisition Rationale The acquisition came at a time when Thomson was facing a fall in demand in devel oped markets for television with CPTs and was moving more towards Flat-screen an

d Plasma Television. However, Videocon saw an opportunity in the emerging countr ies for CPTs and hence pursued with the acquisition. Besides, the acquisition ga ve Videocon, the access to advanced technology giving the company control over a n R&D facility in Agnani, Italy. The major reasons behind this acquisition . wer e Cost cutting Videocon was better positioned to shift the activities to low-cost locations and also it could integrate the operations with the glass panel facili ty in India with the CPT manufacturing facilities acquired from Thomson S.A. Vid eocon wanted to leverage its position in the existing parts of the business and this acquisition would give it a strong negotiation position and could reduce im pact of glass pricing volatility. Videocon could also reduce the costs by upgrad ing and improving the existing production lines. Vertical Integration The acquisition helped Videocon in vertically integrating i ts existing glass-shell business where it had been enjoying substantially high m argins. Videocons glass division had the largest glass shell plant in a single lo cation. This gave the company an unrivalled advantage in terms of economies of s cale and a leadership position in the glass shell industry. The acquisition also gave Videocon a ready-market for its glass business and it was part of Videocons long-term strategy to have a global vertically-integrated manufacturing facilit y. Rationalization of Product Profile Videocon modified its product profile to cate r to the changing market needs like moving away from very large size picture tub es to smaller ones. Apart from the overall strategy Videocon also had a plan on the technological fr ont. It wanted to improve the setup for the production line and line speed postmerger. Its focus was to increase sales while reducing the costs and thereby imp roving the productivity of the existing line. The company also wanted to foray i n a big way into LCD panels back-end assembly . On the sales front the company w anted to leverage on the existing clients of Thomson and build relation as a pre ferred supplier to maximize sales. Also, Videocon could benefit from OEM CTV bus iness with the help of Videocons CTV division, invest for new models and introduc tion of new technologies. Thomsons perspective In 2004 Thomson planned entry into the high-growth digital media and technology business. Also, Thomson wanted to exit consumer and electronics businesses as th ey were incurring significant losses. After sale of its TV business to Chinese g roup TCL, and Tubes to Videocon, Thomson divested from the audio/video accessori es business which was the last unit of its consumer electronics business. The ne ed to divest are quite evident from the losses that it incurred in these busines ses particularly that the unit that it sold off to Videocon, the Optical Modules activity, and the Audio/Video & Accessories businesses which totaled around 749 million for 2005. Moreover Thomson had done some acquisitions that were in line with boosting their revenues in the following years. [10] Other Competitors for the Acquisition When Videocon entered the race for the color picture tubes manufacturing capacit y of Thomson SA in November 2004, there were 16 other bidders. Videocon stood sl im chances given the fact that it had to battle it out with players like LG, Phi lips, Samsung and Matsushita, Daewoo and several Chinese manufacturers but final ly managed to close the deal. The deal catapulted Videocon into the No. 3 slot i n the global pecking order for CPTs. An official of Videocon said on the deal "T he word is out in the world that India and Indian companies are not just a good bet by themselves, but also a hedge against China. Pre-merger scenario analysis CPT industry is affected by many competitive factors such as change in the consu mer preferences ,the product offer strategy of retailers, the progress made by a lternative technology manufacturers ,capacity adjustment facility of competitors etc. Based on all of these factors there were two scenarios that emerged from t he 2005 budget of Videocon. The first scenario is a conservative one. It mainly assumes Price pressures similar to those in the past(-8 to -12%),capacity reduct ion over a period of two years, a gradual shift to newer technologies like True

Flat and good amount of growth for LCD makers. The second scenario is a more aggressive one in term of trends predicted. It ass umes that the switch to True Flat would be faster, more overcapacity, more compe tition from LCD manufacturers and rising price strategy pressures in general. Th e second scenario obviously requires an industrial strategy which is more adapte d to the environment. However even if the second scenario arises, Videocon believes there is an opport unity in the CRT business. Though it is very obvious that in the developed marke ts of the western world the demand is shifting towards the flat panel side (FPD) it is expected to contribute 70% of TV market in these regions),in the emerging markets like BRIC CRT still holds fort. CRT holds a dominant 70% share in these markets. When translated into number of units the demand is more than 100 milli on units. As Videocon is primarily based in these countries, it hopes to harness the value of the Thomson acquisition in the coming years.[citation needed] Post merger situation (2008) Videocon has not been able to turn the plant around in Italy still. However it i s getting support from the local government(which want to prevent job cuts) in f orm of grants. The government is in fact trying to set up a Greenfield venture i n form of a LCD manufacturing facility in partnership with Videocon. The banks a re also supporting Videocon and with help from all these quarters Videocon expec ts to turn around the plant in Italy.[12] The Thomson plant has not turned aroun d in Mexico as well and in fact production has been reduced over there.In Poland ,the situation is more promising and Videocon hopes that plant over there will g et in black in the very near future.[13] However the surprise has been in the Ch inese market .Despite facing a highly competitive market Videocon has managed to turn a plant around while the other is on its way. In China Videocon is adoptin g a different strategy for manufacturing CTVs as the local players dominate the market .It plans to supply these players by taking advantage of low-cost nature of mainland(the number targeted by it about 6 million CPTs).[14] Italy The LCD television segment is one of the fastest in terms of growth rate in Ital y. The compounded growth rate is projected to be around 70% in the next few year s. Videocon in partnership with the local government is going for a Greenfield v enture in this segment. The Italian central government is giving a euro 180 mill ion grant whereas the regional authorities are giving a 40 million grant. Videoc on would itself pitch in with about euro 300 million whereas bank loans would pr ovide a further 700 million. China In the Thomson plant located in China the local Chinese Government is the minori ty shareholder. Mexico When Videocon acquired Thomsons CPT business, it also gained control of Thomsons M exican plants. However Videocon Industries has a view that it would expand in th e country only if the government gives it enough incentives. Videocon is demandi ng a 25-30% cash benefits from the government of Mexico. Thomsons exit from Videocon Thomson is looking to sell out its stake in Videocon (a 10 percent stake via GDR s) and in most likelihood it would be bought by Videocon itself. Thomson would b e exiting at a loss as it had acquired the stake at around Rs 400 per share (app roximately equal to $10 per share).The deal is expected to happen at current mar ket prices. Videocons GDR is currently traded at around $5.06 on the Luxembourg S tock Exchange. On the Bombay stock exchange its trading around Rs 150 against th e 52 week high of Rs 868 in Jan 2008. Another point to be noted is that this wont attract the market regulators creeping acquisition norm which comes into force onc e they acquire more than 5% stake, as the deal would be an overseas one. [15]

Mission To delight and deliver beyond expectation through ingenious strategy, intrepid en trepreneurship, improved technology, innovative products, insightful marketing a nd 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 intermediat e processes and principals, which have contributed to building a robust, dependa ble Videocon value chain (deliver). As a result of its focus on developing loyal c ustomers 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 planni ng 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 bec ause of the absence of textbook conditions. Thus, there is a need for a bounded rationality, a spontaneity and improvisation that is flexible enough for scenari os both imaginable and unimaginable. Videocons ingenious manoeuvres are actually flexi-strategy that abstracts from shifting ground conditions and decides game-p lans, or sometimes changes the rules of the game. 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. Videocons foray into oil a nd gas is a bold and intrepid endeavor that arises from immense faith on the sur efooted competence of the companys 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 v igilant 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 customization are the tools Videocon uses to stay ahead of the competition. This is because a continuous stream of innovativ e products excites the market and enhances brand recall. A strategy that Videoco n 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 market ing strengths to read better the pulse of the market and help create products th at 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 gra ve risk. Videocon extrapolates future trends on the basis of current changes in technology and preferences as well as sheer gut feel. Fine-tuned business instin cts are worth their weight in gold, lots of it. The company has perfected its pr actice almost into an art form with some calculated gambles like oil and gas pro ving to be absolute money-spinners

\ Marketing mix Marketing: Promotion Strategy. The Promotion strategy of brand Videocon can be divided into two strategy: Above the line promotion Advertising on t.v , print media, word of mouth, dealer recommendations The company organise many events to promote the products like youth awards, celeb rities night. Brand ambassadors like Shahrukh khan and MS Dhoni are being roped in to promote the products Below the line promotion Scratch cards , discount coupons , gift with purchase of product , money back off ers , on the spot cash discounts , exchange offers , festive discounts . Free service camps and promotional campaigns should be organised to target specif ic areas Pricing Strategy Evaluate the pricing strategies adopted by washing machines manufactures. Prep are a table showing the salient aspects of company. Pricing is one of the major marketing mix tools. Pricing decisions can make or b reak a company Price:Price is the amount of money charged for a product or service or the sum of the values that customer exchange for benefits of having or using the product or ser vice. Pricing:Pricing of products depends upon various factors such as cost of the product, profit margin, demand for the products and competition etc., However the custome rs perceptions of the products value set the ceiling for prices. Product costs set the floor for prices. Other internal and external factors Marketing Strategy Objectives and mix Prod uct Cost Customers Perception of Vale Price Ceiling Floor Price No demand after this price No profit below this price So the process of setting price to the product taking into various factors both internal and external is called pricing.

Product strategy In India the group sells consumer products like Color Televisions, Washing Machi nes, Air Conditioners, Refrigerators, Microwave ovens and many other home applia nces, selling them through a Multi-Brand strategy with the largest sales and ser vice network in India Place strategy Videocon currently have sales in all over the world by acquiring Thomson company enter in to China and Mexico and also Italy. Company mainly concentrated in mid dle Asia 90 branch office 10,000 distributor and 400 after sales service center across In dia, company 80% plus penetration in the market place

Financial analysis Balance sheet (Rs crore) Balance sheet-2011 Dec 10 Sep 09 Sep 08 Sep 07 Sep 06 Sources of funds Owner s fund Equity share capital 301.95 229.41 229.30 220.95 220.84 Share application money 95.00 Preference share capital 46.01 46.01 46.01 46.01 46.01 Reserves & surplus 9,085.92 6,929.63 6,538.49 5,357.91 3,847.63 Loan funds Secured loans 5,937.61 6,735.04 4,401.25 3,343.50 3,608.39 Unsecured loans 5,836.16 2,349.51 3,604.34 1,916.14 1,352.80 Total 21,207.64 16,384.59 14,819.39 10,884.50 9,075.67 Uses of funds Fixed assets Gross block 9,536.60 9,004.95 8,947.78 8,083.16 7,127.93 Less : revaluation reserve 53.52 924.57 Less : accumulated depreciation 4,804.07 4,298.83 4,310.63 3,376.67 2,847.09 Net block 4,732.53 4,706.12 4,637.15 4,652.98 3,356.27 Capital work-in-progress 1,270.58 1,314.15 1,289.52 612.98 608.28 Investments 4,267.96 3,064.90 2,695.59 2,092.50 1,781.17 Net current assets Current assets, loans & advances 12,643.27 8,820.90 7,641.68 5,142.49 4,425.46 Less : current liabilities & provisions 1,706.69 1,521.48 1,444.55 1,616.44 1,095.51 Total net current assets 10,936.57 7,299.42 6,197.13 3,526.05 3,329.96

Miscellaneous expenses not written Total 21,207.64 16,384.59 14,819.39 10,884.50 9,075.67 Notes: Book value of unquoted investments 4,217.13 2,524.79 1,906.24 1,618.68 Market value of quoted investments 62.59 10.83 230.38 94.13 Contingent liabilities 191.47 122.93 178.17 81.65 Number of equity sharesoutstanding (Lacs) 3019.64 2294.51 2210.94 2209.86

3,056.96 214.72 112.59 2294.07

Ratio analysis of Videocon industry Year 2011 2010 2009 2008 Debt-Equity Ratio 1.26 0.95 Long Term Debt-Equity Ratio 1.13 1.03 Current Ratio 1.9 2.35 2.42 Fixed Asset Turnover Ratios 1.84 1.75 Inventory Turnover Ratios 7.61 7.23 Debtor Turnover Ratios 7.31 0.78 Interest Cover Ratio 3.24 2.98 PBIDTM (%) 12.6 3.73 3 PBITM (%) 9.06 2.65 1.51 ROCE (%) 13.09 0.39 0 RONW (%) 16.71 o.4 0 CPM (%) 8.51 2.44 3.41 8.01

2007 1.04 0.88 2.09 O.27 0.64 1.78 0.76 12.6 8.76 11.9 11.14 7.48

2006 0.93 0.95 1.77 0.42 1.51 8.27 3.89 10.76 7.93 15.13 17.61 7.32

2005 0.94 0.83 1.78 1.94 6.8 10.1 4.96 10.1 7.41 14.69 19.581 7.01

1.09 0.79 1.87 2.6 8.01 9.49 4.84 8.45 5.35 7.65 12.57

1.19 0.87 2.84 7.81 6.3 2.48

Ratio Analysis

Ratio analysis is a widely used tool of financial analysis. It is defined as the systematic use of ratio to interpret the financial statement so that the streng ths and weakness of the firm as well as its historical performance and current f inancial conditions can be determined. the term ratio refers to the numerical or quantitative relationship between two items or variables. It should be noted th at computing the ratio does not any information. What the ratio do is that they reveal the relationship in a more meaningful way so as to enable us to draw conc lusion from them. The rationale of ratio analysis lies in the fact that it makes related informati on comparable. A single figure by itself has no meaning but when expressed in te rms of a related figure, it yields significant inference. Types of Ratios: Ratios can be classified in to four broad groups Current Ratio:Current ratio is one of the oldest of financial ratios. Its usage dates back to 1891; the primary users were short-term lenders. Even today, this ratio is regarded as a key ratio in the credit appraisal system of banks in India in s pite of the fact that current ratio has lost most of its shine in modern-day fin ancial management whose approach is to reduce the value of this ratio rather tha n increase it. The attention received by current ratio from short-term lenders f or such a long time is due to their preoccupation or anxiety over sudden slowing down of realization of current assets from which they are to receive payment. T he 2:1 historical standard was evolved to ensure that even if as high as 50 perc ent of current assets fail to realize in time, the lenders would not be worse of f. The cushion, which is popularly termed as net working capital, provided a sen se of security to the lenders. Current Ratio = current asset/ current liability 2011 Current ratio 2010 1.9 2009 2.35 2008 2.4 2007 2.09 2006 1.77 2005 1.38

1.39

Current ratio is above the standard in consecutive 3 year Interpretation: Current ratio indicates short-term solvency of the firm i.e. ability to meet the short term obligation. Higher the current ratio higher is the amount available to pay for meeting current obligations. By looking into table above we can say that the current ratio of the company for the past three years is showing is go od since the ratio has been increase. which shows their ability to pay off the c urrent obligation is that good. Debt equity ratio 2011 2010 2009 2008 Debt equity ratio 1.26 0.95 Debt equity ratio=debt/equity 2007 1.04 2006 0.93 2005 1.09 1.19 1.68

Interpretation The standard debt equity ratio is 2:1. It means for every 2 share there is 1 deb t. If the debt is less than 2 times of the equity, it means that are relatively less and the financial structure of the business is sound. If the debt is more than 2 times the equity. The state of long term creditors are move and indicates weak financial structure Here debt equity of firm is less than the standard ratio it shows that company is doi

Stock turnover ratio 2011 2010 2009 2008 2007 2006 2005 Stock turnover ratio 7.61 0.64 1.51 7.81 7.23 5.99 7.33 Stock turnover ratio=cost of goods sold/average stock The ideal stock turnover ratio is 8 times a year. A low inventory turnover may reflect dull business, over investment in inventory accumulation of stock at the end of the period in anticipation of higher price or of greater sales volume ge nerally high stock ratio means that the concern is efficient and hence it sells its goods quickly The company maintains normal inventory so company has to increase its inventory Fixed turnover ratio 2011 2010 2009 2008 2007 2006 2005 Fixed asset turnover ratio 1.84 0.27 0.42 1.94 2.6 2.84 1.75 Fixed assets turnover ratio=net sales /fixed assets Interpretation The standard fixed turnover ratio is 5 times. A high ratio indicates better util ization. Of fixed assets A low ratio indicates under utilization of fixed assets The above table shows that the ratio is below standard ratio so company is not able to utilize its resources in the most efficient way Debtor turnover ratio 2011 2010 2009 2008 2007 2006 2005 Debtor turnover ratio 7.31 0.78 1.72 8.27 10.14 9.49 6.3 Debtor turnover ratio=net annual credit sales/average debtors This ratio explain the relationship of net (credit) sales of a firm to its book debts indicating the rate at which cash is generated by receivables or debtors

Analysis of the survey: The survey was done with an objective to find the marketing and promotional act ivity of some of the randomly selected retail outlets in suratkal and mangalore. The questionnaire prepared for the survey mainly was with a primary objective of finding the importance of promotional and market analysis, the various aspect r elating to the Videocon products market in mangalore and to know the consumer bu ying behavior. Questionnaire is the list of questions prepared by an enumerator to collect the primary data from the field. During my survey I have contacted 5 respondents (re

tailers). Through an ideal number of questions, sincere attempt is made to colle ct as much as Information possible. The respondents were selected on the basis o f convenience and judgment sampling method. According to the survey all the 5 retailers were dealing with Videocon products seller. All the retailers were given benefits by the company if they reach the ta rget set by the company. As per the analysis the 2 retailers purchase home appli ance (Siri electronic and Girias) and 1 retailers purchase DTH (Pai internationa l) 1 retailers mobile phone (total mobile) one of the retailer revealed the f act the sales comes down drastically from last 6 months. According to the analys is Videocon has able to compete with other industries From the observations one can say that the brand Videocon enjoys high brand equi ty and the company is in the growth path.

Surveyors input: After completing my survey, I would like to recommend a few things to Videocon There should be more advertisements in local news papers and FM radio channels a bout the new offers. Videocon can think over about the matter of an exchange offer to regain its old customers Videocon should make its accessories available in all the retail outlets. It should concentrate more on increase the sales It should good amount of benefits to the retailer so that they get motivated and also influence the consumer to buy Videocon