WHITE GOODS

CONSUMER DURABLES

INTRODUCTIONWHITE GOODS

CONSUMER ELECTRONIC

S

CONSUMER APPLIANCES

TVs ,VCDs

Player,Audio

system

Refrigerators,

Washing machine,Vacuum cleaner,

Dishwashers

KEY FACTORS Suppliers Barrier to entry Competitions Bargaining power of customers

Low penetration levelsDomestic companiesMNCs

GROWTH FACTORRise in disposable incomeNew variant of productsPurchasing power of customersRural India:

70 % of total no. of households Immense scope Opportunities for white goods consumer durables

Innovative advertising

Continue…

Availability of finance Availability of credit and loan

Growth of mediaLowering the input cost

MAJOR HURDLES & ChallengesIf we consider Porter’s model: Threat from the new entrant

Global companies, especially from MNC’s

Threat from substitutes presence of FM radio stations, radio sets

have substituted TV’s.

Rivalry as well as competition Bargaining power of customers

Huge varieties of products Wide range of product line, depth

SUCCESS FACTORS

Market positioning and

branding

Distribution and service

network

Product technology

Locations

PRODUCT PRICING

Price is sensitive Depends upon

Brand name

Technology used

Product features

KEY COMPANIES COMPANY

PRODUCTS

VIDEOCON INDUSTRIES

REFRIGERATOR, WASHING MACHINES, T.V., AC, MICROWAVE

SONY TELEVISION, DVD PLAYER

WHIRLPOOL REFRIGERATOR, WASHING MACHINE

PANASONIC TELEVISION

VOLTAS REFRIGERATOR, WASHING MACHINE, AC

ELECTROLUX VACCUM CLEANER, REFRIGERATOR

SAMSUNG TV, REFRIGERATOR, VACCUM CLEANER

Continue…LG ELECTRONICS TV, REFRIGERATOR, WASHING MACHINE

EUREKA FORBES VACCUM CLEANER

PHILIPS TELIVISION

BPL LIMITED REFRIGERATOR, TV

BLUE STAR AIR CONDITIONER

GODREJ REFRIGERATOR, AIR CONDITIONER

HOOVER VACCUM CLEANER

POLICIES & INITIATIVES• Now possible to Import duty

free raw materials, all components .

• Custom duty on Information Technology Agreement has been abolished from March 2005.

• EHTP initiative taken to provide benefits to companies.

THE CHALLENGES

• Heavy taxation ( 25-30)% in the country.

• About 65% of population still lives in villages.

• Not aware of existing companies.

• Entering into rural markets has considerable cost component attached to it.

• Poor Infrastructure & Electricity supply remains a major hiccup in India.

THE OPPORTUNITIES

• Rising rate of growth of GDP ,purchasing power & higher eagerness to consume.

• Growth in disposable income, improving life styles, low running cost & rise in temperatures.

• Banks & financial institution are

coming out with liberal schemes .

VIDEOCON

FOUNDED IN 1979

FOUNDER - NANDLAL MADHAVLAL DHOOT

TYPE - PUBLIC

NET REVENUE – US$2 BILLION (2010)

EMPLOYEES – 5,000(2010)

COMPETITORS:- LG, SAMSUNG, WHIRLPOOL & OTHER GIANTS

History

Largest manufacturers of Color Picture Tubes and Glass shells forming the backbone of many Color Television manufacturers around the world.

Videocon VCR Ltd. has collaboration with Toshiba Japan.

Videocon has tied up with Dolby Laboratories, USA, for use of Dolby Technology .

It collaborate with Samsung of Korea for manufacturing glass shells.

It has tied up with Akai to jointly flat new company to market the Akai range of products.

It had entered into a joint venture with Necchi group of Italy

HistoryIn 1984 launched Videocon International

LimitedIn 1987, Videocon started manufacturing of

B&W and color televisions Videocon emerged as India’s leading

brand of Color Televisions with in a decadeIn 1989, Videocon launched home

entertainment systems and air conditionersIn 1995, it introduced refrigerators and

coolersIn the mid-1990s, Videocon manufacture

CRT glass shells at Gujarat

Videocon India Products

White goods Consumer Durables is the major group of Videocon and it follows the strategy of multi-brand and multi-price. It is manufacturing goods with price range and brands. Videocon markets Sansui, Akai, and Toshiba besides its own brand, Videocon and the combined Videocon International market share are 16.8% by volume.

There are so many of white goods Consumer Durables by India manufactured by Videocon as:

Color televisionWashing MachinesAir ConditionersRefrigeratorsMicrowave OvensDVD Players

Strengths of Videocon

1. Videocon has excellent brand awareness2. Price of the Videocon products are quite satisfactory to the people3. Good geographical coverage4. It has better product range5. It’s economically strong

Weakness of Videocon1. Still it requires to increase

the quality of the product more

2. Poor in product body designing as compared to LG & Samsung

Porter’s model

Its Global Partners

Strategic Alliances & Acquisition

Multi-brand strategy- Videocon/Akai,1995

Electrolux, Kelvinator, Videocon merger in 2006

Videocon: From market leadership to overall brand consolidation

Package from Airtel, Videocon, Alcatel

Videocon's global strategy

Competitive Advantage

Cost of production Largest distributed

manufacturing base across India - 12 facilities

Managing a complex supply chain

Backward integration

Challenges and Criticisms

Competition in global CPT market

Rapid adoption of LCD technologies

A sharp drop in plasma and LCD prices

Issue of breaking new ground in terms of geographies

The consumer really is not price sensitive today

Financial Results01-APR-2010 to 30-JUN-2010 (Third Quarter)Net sales 289356.00 Rs. LakhsTotal profit 21369.00 Rs. Lakhs 01-OCT-2008 to 30-SEP-2009 (Annual) Net sales 428903.00 Rs. Lakhs Total profit 19591.00 Rs. Lakhs  01-OCT-2007 to 30-SEP-2008 (Annual) Net sales 1223705.00 Rs. Lakhs Total profit 144541.00 Rs. Lakhs 01-OCT-2006 to 30-SEP-2007 (Annual) Net sales 1259713.00 Rs. Lakhs Total profit 92333.00 Rs. Lakhs    

Have both internal and external challenges e.g. profit vs. growth.

Samsung electronics Founded 1969Revenues US$ 117.4 billion (2008) Net income US$ 8.33 billion (2008) Owner Lee Kun HeeEmployees 164,600 (2008)

Samsung Electronics is the world’s largest company with 2009 revenue of $117.4 billion.

R&DInnovation is important to Samsung's

business. New technologies are constantly

introduced to the market, speed is important for competitive era in today's digital time.

Through the interplay of creative, imaginative people, Samsung has put R&D at the heart of everything they do.

42,000 people-work everyday in research and development.

Eco friendly products of Samsung

Ultra low power refrigerator and Air conditioner .

Mercury-free LED backlight unit monitor

Samsung provides absolute customer satisfaction through innovative products and service innovation initiatives.

STRENGHTS AND PERFORMANCEImproving product quality.Improving product safety.

STRATEGIES AND CHALLENGES.

Rivals for outsourcing production and desighn.

Have both INTERNAL and EXTERNAL challenges.

HISTORYAkio Morita & Marasu on 7th may 1946 set

up Tokyo Telecommunication Research Laboratories.

In1950, company entered into consumer electronic.

In1953, purchased the transistor technology

from at&t.In1955, Produced first transistor radio TR-55.

In1958, renamed the company as SONY.

Mergers,Acquisitions & Joint Ventures 1988-Sony Music Entertainment1989-Sony Pictures

Entertainment1993-Psygnosis Limited1995-Sony/ATV music Publishing1997-ST LCD Corporation 2001-Sony Ericsson2002-Aiwa

2004-Sony BMG Music Entertainment,S-LCD Co.

2006-Sony NEC Optiarc Inc., Digital Slr from Konica Minolta

Consumer ProductsTelevision & ProjectorHome VideoHome AudioHome Theatre System Digital PhotographyVideo Camera Portable AudioGame

Television, Home Video&Audio System

LCD: 16 products under 6 different series.

Video player : 10 products

Audio system: 31

Global Presence Head Office at Tokyo.

Globally present nearly above 100 countries.

Mainly manufactured in countries like USA,UK,Thailand,Malaysia,japan&China.

PRESENCE IN INDIA Head Office at Delhi .Branch Office at Guwahati ,

Kolkata, Ranchi, Chandigarh, Ghaziabad, Jaipur, Ludhiana, Luchnow , Panipat, Bangalore, Chennai, Coimbatore, Kochi , Hubli , Vijayawada, Hyderabad , Ahmedabad , Indore , Mumbai and Pune.

DISTRIBUTION7000 Total Channel Partners.1475 Dealers.215 Sony World’s.21 company owned service

centres and 172 authorized service centres.

Main Warehouse are Chennai & Mumbai.

SWOT ANALYSIS

STRENGTH Innovation Quality Brand strengthWEAKNESS Maintaining multiple function. Product Pricing.

Opportunities “Asset light” Strategy. T.V. Business Expansion T.V. Category and Gaming

Segment InvestmentTREATS Competitor competition Global Economic Recession .

FINACIAL SALES & OPERATING REVENUE (in

billions.) In 2008 : 8,871,414

In 2009 : 7,729,993

In 2010 : 7,213,998

INTRODUCTION The company was originally established in 1958 as

Goldstar, producing radios, TVs, refrigerators, washing machines, and air conditioners.

The L.G group was a merger of two Korean companies Lucky and Goldstar.

Is the second largest producer of television and third largest producer of mobile phones.

SWOT ANALYSIS

Strengths:- Market leader in home appliances.

Has got manufacturing unit in tax incentive .

Wide range of products to serve all categories.

Widest distribution network in the industry(47 barnches,10000 trade partners).

Good after sales service offered.

WEAKNESS. Samsung being its competitor provides similar

products.

Consumers compare L.G with Samsung its Korean rival not with other global companies.

Lack of expert operators for complex machines due to illiteracy and lack of training in India.

OPPURTUNITIES.

Fast growth of the home appliances market

Shifting to rural areas

Thus maintaining control over the market and the highest share in home appliances market

Threats Close competitors like Samsung are compared to it.

Price war with Samsung.

Competition from Indian brand and other foreign brands.

Growth planning

Growth strategy “fast innovation fast growth”

The new plant which is under development aims to reach a manpower base of 1500 people and an investment of Rs 300 crore till 2010.

Growth strategies aimed at gaining more customers from the 1.1 billion prospective customers of India.

STRATEGIC DECISIONS

Local and efficient manufacturing to reduce the cost

R&D potential

Regional channel and wide distribution network

Product localization

Innovative marketing strategy