Marketing and Branding Strategies of Consumer Durable Companies

7/29/2019 Marketing and Branding Strategies of Consumer Durable Companies

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Research Report

On

Marketing and Branding Strategies of

Consumer Durable Companies

TECHNOLOGY

FOOTWEAR DESIGN & DEVELOPMENT INSTITUTE

A-10/A, Sector 24, Noida- 201301

Submitted in partial fulfillment of the requirement for the

degree in fashion retail and merchandise management.

Faculty Guide

Mrs. Jyoti BhasinSr. Faculty

FDDI Noida

Submitted by-

Rishabh Bajpai

M.Sc. FMRM

Inr. No. 118520156

Prog. Code MFWP002


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MARKETING AND BRANDING STRATEGIES OF CONSUMER DURABLE COMPANIES

ACKNOWLEDGEMENT

I would like to take this opportunity to thank the following

people who have directly or indirectly contributed towards

the completion of this dissertation and without their help

this in the present form would have not been possible.

I am thankfu l to Mrs. Jyoti Bhasin Sr. FacultyFDDI,

Noida for giving me opportunity to work on such a nice

project as my project. And last but not the least my special

thanks to my parents without their support my MBA course

would not have been possible.

Rishabh Bajpai

IILM Greater Noida 2


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DECLARATION

I hereby declare that this project report entitled Marketing and Branding

Strategies of Consumer Durable Companies is written and submitted by me

under the kind guidance ofMrs. Jyoti Bhasin.

The findings and interpretations in the report are based on both primary and

secondary data collection. This project is not copied from any source or other

project submitted for similar purpose.



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Contents

Introduction

Industry Overview 7 History 8

Major Industries

Philips 14Samsung 15 Videocon 15 Whirlpool 16

Hitachi

16Electrolux 17 BPL 17Onida 17

Comparison-Major Players

BPLProducts 20 Strategy 25 Distribution Network 40

Promotion Mix 42

VideoconProducts 46

Distribution Network62

Promotion Mix 63



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SamsungProducts 66

Marketing and Branding Strategies

An Overview 76LGs Strategy 78

Present Scenario and recent trends 82

Future prospects in Consumer Durable 87 Industry

SWOT Analysis 93

Conclusion 95

Recommendation 101

Bibliography 104



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Introduction



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INTRODUCTION

INDUSTRY OVERVIEW

The Consumer Durable industry is huge! Think of a typical day then

you wake up to make coffee that has been brewed by your-controlled

coffee maker. You pop a couple of sl ices of bread into your electric

toaster, grab some juice f rom the ref r igerator and throw a load of

laundry into your washing machine. You dry your hai r wi th your

electric hair dryer; brush your teeth with your electric toothbrush and

head o f your j ob. A t l uncht ime, you prepare your l unch in the

microwave oven and then leave early to head homework in your yard

wi th your lawnmower, leaf blower and t r immer. Dinnertime means

your need to put that roasts in your e lect r ic oven, open a can of

vegetable with the electric can opener and mix up a cake with your

e lectr ic mixer . After the d ishes have been put in the automat ic

dishwasher, i t is t ime to relax wi th the TV and VCR, but only af ter

you put the clothes into the dryer and iron the clothes you wi l l need

for tomorrow. Time to set that t imer on the coffee maker again and

prepare for a b rand new morning ! The number o f househo ld

appl iances grows every year, but there is one sector of the industry,

the major appl iance sector, that remains fair ly constant. This is the

sector that I have chosen to analyze. The appl iance that comprise



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th is se cto r r e r ange s, r efri ge ra to rs , wa she rs , dr ye rs , a nd

dishwashers the SIC that relate to them are.

HISTORY

Home Appl iances industry is one of the most lucrat ive and fast

growing industries. The Indian economy witnessed a prol i feration of

global companies in the Nat ional Scene. Liberal izat ion of Indian

economy coupled with the media explosion ushered in a new era of

consumerism. Increased purchasing power and a f luid taste led to

the creat ion of budding Home Appl iances market. The growth rates

were as h igh as 22% in the whi te goods segment compared to a

merely 2-3% growth in the European and American market.

Home App liances i ndus tr y scena ri o in I nd ia i s a t ot al ly

di f ferent from what i t was one decade back. Consumer Industry

Scenario in Ind ia is total ly d i f ferent f rom what i t i s in European

Countries. Demand in developed countries is mainly const i tuted by

replacement demand white goods market in India was dominated by

indigenous industrial houses l ike Videocon, BPL, ONIDA, Kelvinator,

and many other, but the entrance of mult inat ionals in Indian market

because of opening up of Indian economy gave these companies a

big blow. MNCs that are gaining good market share are Samsung,

LG, Electrux.



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EMERGENCE OF CONSUMER DURABLE INDUSTRY

Indian Home Appl iances industry is growing at an overal l rate of 12-

13 percent. I f we consumer each product market individually, the

C olo ur Tele vis io n mar ke t has s ho wn a g ro wth r ate o f 25 %.

Refrigerator market is growing at a rate of 8-10%. Reason for high

growth ra te CTV marke t i s tha t now a days TV i s no t used as a

s ou rc e o f e nter ta in me nt bu t al so s ou rc e o f k no wle dg e an d

educat ion. Al l these factors act as accelerator. I f we take the case

air condit ioners, today air condit ioner is not only refer to a cool ing

machine but also an air f resher. In proport ion to growing incidence

of working couples, refrigerators are gaining signif icance, more and

more as an inst rument to s tore and recyc le ready made v ic tua ls .

Inspite of many value added Service that are being offered by most

of the brand, the refrigerator market is sti l l bit ing the dust.

Electronics is the fastest growing industry in India. In the l iberal ised

economic scenario, electronics has entered every walk of our l ives

and has enhanced the qual i ty of l i fe that is enjoyed by the Indian

consumer. India i s no l onge r a count ry, a marke t where t he

consumer has to re ly a lmost enti rely on the in flux of smuggled

electronic i tems to sat isfy his needs. The Indian electronics industry

has thrown up competi t ive players who are not only able to cater to

the desi res of the Indian consumer successfu lly, but have a lso



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emerged as very successful exporters of electronic goods to the rest

of the wor ld . Th is has a l l happened in the last 20 years or so. A

couple of decades ago, nobody in h is widest dreams could have

imagined tha t consumer goods bearing Ind ian b rands, bui lt up

assiduously by Indian companies would come to dominate Indian

indust ry . There could have been two reasons for so l i t t le fa i th in

Indian goods. First ly, the Indian publ ics unhidden groups l ike BPL,

Videocon, Onida, that Ind ian brands now dominate the markets .

These corpora te houses have upset the app le car t o f f oreign

compani es by establ ishing Home App li ances manufactu ri ng

companies tha t have not only consisten tl y p roduced super io r

products but have also created in a very short span, brand equit ies

capab le o f t ak ing on interna tional b rands. That i s, t he Ind ian

consumers percept ion of brands originat ing in his own backyard has

evolved from one of shame to one of trust, pride, identif ication, all of

which translate into patronage - or achievement of a companys core

business object ives.

The Electronics industry is one of the bedrocks of global industrial

development . The electronics industry was for long the domain of

F ir st W or ld economi cs . The 1960 s saw a shi ft , wi th Japan s

emergence. Subsequently Hong Kong, South Korea, Taiwan and

Singapore, then Brazi l , India and Mexico fol lowed of late by China,

Indonesia, Malaysia, Phil ippines and Thailand have entered the fray.



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After economic l iberalisation our country lowered entry barriers and

brought g lobal companies in to the count ry s marketp lace, i t was

real ized that the core of the corporate world must change, to focus,

the f i rst t ime ever in India, on the consumer. And to stop chasing

revenues, prof i ts and market shares, which wi l l f low only f rom the

new consumer competence. Forget too, forever, the si lent consumer

who, before o f a lterna ti ves, uncomplaining ly bought whatever

p roducts were made ava ilab le . I n todays and tomorrows new

unforgiving marketplace i t is the choice - empowered consumer who

wil l decide the fate of the corporations.

And competit ion, global quali ty and new economic reali ties are

consp ir ing t o l im it success onl y compani es t ha t a re f ocused

completel y on the ir consumer. For , only these companies and

c on tinu ou sl y m on itor a nd me et c hang ing co nsum er n ee ds :

streamline processes; cut costs and restructure for quicker response

to th e c ons ume r s d em and s. Al l o f wh ic h wi ll ad d up to an

unmatched competi t ive edge, enabl ing them to conquer tomorrows

marketplace today. However, the consumers and spending wisely

not indiscriminately. Changing personal, social , famil ial and cultural

inf luences - for instance, the advent of satel l i te TV, internet and the

information age bringing with them rich, real - t ime images and data

about global l i festyle- have made the consumer an individual ist ic,

i conoclas ti c and i rreveren t w ie lder authori ty over the fate o f



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corporate at tempts to ful f i l thei r needs. Which is why in th is new

buyer s marke t, t he marke te r has not cho ice but no make the

consumer his lodestar.



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MajorIndustries



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MAJOR INDUSTRIES

Trends affecting the Consumer Durable industry

The booming economy g ives consumers more rea l d isposable

income, which has increase since 2004. This is an important factor

in major appl iance sales as i t is est imated that U.S. consumers

spend about 50 cents of every $100 on major appl iances. The

economy a lso does wel l f o r consumer loans. In good t imes,

consumers are less af raid to borrow money for major purchases,

and as appl iances . Many may even dec ide to bu t wh ile the

economy is good, rather than wait ing unt i l they are forced to make

a purchase when an appl iance wears out.

Changing demographics wil l p lay a s ign if icant ro le in the major

app li ance marke t over t he next f ew years. The baby boom

generat ion wi l l be in the 35-to-55 age group during the next 5 years.

Household headed by consumers in this age range are in their prime

earning years and tend to spend more on household durables than

any other age group.

Philips India

Phi l ips is one of the oldest mul t inat ionals to enter India nearly 60

years ago. Phi l ips has had a fair ly successful run as a major player

i n the telev is ion marke t. The company has ident if ied domesti c



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Electronics, personal computers and monitors, software as i ts target

business. In the year ending Dec05 Phi l ips India has notched up

sales of Rs. 1683 crore.

Samsung Electronics

Samsung electronics, entered India with a stake of $ 5 mil l ion in the

India subsidiary Samsung India electronics Ltd., in which i t holds a

51 per cent cont rol ling share. The product port fo l io o f Samsung

Electrons ranges f rom Mul t imedia products, home Electronics and

telecommunica tion product systems.

In India the company has establ ished a leadership posi t ion in the

product categories in Home Electronics 440 watts Mixer Grinder CD

based systems, washing machines, microwave over and VCDs. In

2004 it had a market share of 8%. The company has a

manufacturing facil i ty for home appliance at the Noida complex. This

fa ci li t y ha s a p rodu cti on cap acity o f 50 ,0 00 un its ea ch fo r

refrigerator and washing machines.

Videocon

Videocon International L td. , company having a market share of

14.1% in the Home Electronics market . Est imated to be among the

top three companies in the country in the Home Electronics, Citrus

Juicer and M ixer Grinder segment V IL i s now up aga inst major

international brands which have entered India. In 2004, i t had t ied



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up w ith Toshiba for the marke ting o f t he p remium 16.9 double

window Home Electronics Costing about Rs. 1.9 lacs.

The market share in 2004 were :

Home Electronicss 18%; refrigerator 11%; Citrus Juicer 32.7%; air

condit ioner 12.7%.

Whirlpool

This company invested in India in 1987 beginning wi th the venture

wi th TVS pr ivate l imited. In 1994, TVS Whir lpool Ltd. changed i ts

name to Whirlpool Citrus Juicer Ltd. I ts dominance is mainly in the

white goods industry. I t 1995 Whirlpool required control l ing interest

in Kelvinators of India, one of country largest manufactur ing and

marketer o f re fr igerators. I ts market shares in 2001 were; Mixer

Grinder 19.3%; Citrus Juicer 14.6%.

Amtrex Hitachi

I t has strategic al l iance with Hitachi Ltd., of Japan. I t entered white

and brown goods market in India few years back and is aiming at a

market share growth by 16%. I t is majori ly into the market ing of high

end ACs each in spl i t and windows segment. Its market shares in

2004 were : air condit ioner 13%.



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ELECTROLUX

AB Electrolux, reached an agreement to obtain majority ownership in

an Indian Citrus Juicer manufacturer, Intron Ltd. Electrolux invested

US $ 2.4 mil l ion in the step to obtain 51% ownership in Intron Ltd. In

1995 i t t ook major it y con trol o f Maharaja Int l L td ., an Ind ian

refr igerator manufacturer. With these two manufactur ing bases i t

even has 40% stake in Eureka Forbes Electrolux

The company has presence mainly in the ref rigerator and Ci t rus

Juicer segment. I t has been launching world class products in India

at regular intervals. 2002 wi tnessed the launch of seven upgraded

world class models of Kelvinator ref r igerator. In 2003 i t launched

premium Gold co llect ion f rom Kelv inator . Market shares in 2005

were : refrigerator 13.7%.

BPL

BPL Group was promoted by the founder, TPG Nambiar. The flagship company,

BPL Limited was incorporated in 1963 as a private limited company under the

name British Physical Laboratories India Private Limited for the manufacture of

electronic test and measuring instruments in collaboration with BPL Instruments

Ltd. UK. The company further expanded into such electronic products as medical

systems and equipments, power line carrier communication equipments, copiers,

monitors etc. Making its foray into consumer electronics in 1982, BPL quickly

established itself as one of Indias most trusted consumer durable brands. Huge



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investment in manufacturing, marketing & distribution infrastructure, and brand

building have made BPL a trusted name in the consumer durable industry. BPL

today enjoys one of the highest brand awareness amongst consumer electronics

brands and also has one of the highest preference shares in the CTV industry.

BPL is currently engaged in the production and sales of televisions, home theatre

systems, medical equipment, automotive parts, electronic components and

alkaline batteries.


20%

6%

13%61%

O nid a BPL Vid e oco n Ot he r s

Market Share-CTV

8%6%

18%

68%

On id a BPL Vid e oc on Oth e rs

Market Share-Washing Machine


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COMPARISON MAJOR PLAYERS

BRITISH PHYSICAL LABORATORIES LTD.( BPL )

INTRODUCTION

BPL Home Appl iances Limited is the Flagship Company of the 4600

cr. BPL Group is Indias largest consumer electronics conglomerate.

The group has a long-standing strategic al l iance with Sanyo (Japan)

for a var iety o f consumer durables. BPL L imi ted has a pr inc ipa l

presence in the manufacture and the sale of Colour TV sets. The

company also produces black and white TV sets, alkal ine batteries

and gas tables.

BPL Group was incorporated in 1963 and star ted manufactur ing

hermetica l ly sealed panel meters for defense and subsequent ly

d iversi fi ed i nto med ical i ns trumen ts . I n 1970, wi th techni ca l

co llaborat ion with S iemens and ITT, BPL began manufactur ing

profess ional grade re lays and swi tches and la ter expanded into

manufacture of power l ine carrier communicat ion equipment for the

government of India. In 1982, BPL group grew steadi ly in the f ields

of medical instrumentat ion, communication and power systems

large ly due to a reputed in-house R&D fac il it y and component

development center for in-house requirements. BPL witnessed a new

era in 1982-83 wi th groups entry into Consumer Electronics and

with formal technical col laborat ion wi th Sanyo Electr ic Company,



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Japan. S ince then the growth has been phenomenal with sa les

turnover nearing US $ 900 MN in 2004 to 2005.

To combat competi t ive pressures, the company launched the latest

models in the market and went in for heavy advert ising to maintain

i ts leadership in the market for a qual ity product company from its

earl ier image of medical equipment company.

Sensing the consumer electronic industry is going to be f iercely,

compet i t ive in the years to come and growth rate wi l l s low down,

BPL is d iversi fied i tse lf in to other indust r ies l ike power and cel l

phone networks. Both of these are unrelated diversi f icat ions for the

group and group resources are s t re tched to the l imi t as both the

segments entail heavy investments.

BPL GROUP

Mission Statement

BPL is committed to achieve a leadership posit ion in al l i ts business

g ro up th ro ug h uti l is ation o f the be st an d mo st ap pr op ri ate

technologies, applying the f inest manufacturing discipl ines and most

e ff ic ient ly marke ti ng h igh qua li ty p roducts and servi ces to

consistently give its customers the best value for their money.

Objectives of the Company

To ensure customer conf idence through product qual i ty, ef f icient

marketing and effective service.



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To cont inual ly enhance the Companys growth to i ts shareholders

a nd inve sto rs th ro ug h s ou nd in ves tmen ts an d pr ofita ble

operat ions.

To demonstrate a real concern for i ts employees and constant ly

improve the quality and value of their jobs and career

advancement.

To be a good corporate ci t izen who contr ibutes posi t ively to i ts

community by protect ing the environment and working for publ ic

welfare.

To respect the laws, rules and customs of the land and to ensure

the conduct of al l company act ivi t ies wi l l always be to the highest

ethical standards.

BPL HOME APPLIANCES ITEMS

Consumer Electronics - Televisions

A wide range both in Colour and in Black and White, Catering to

individual customer needs in terms of features, looks and styl ing

housed in fu lly molded plast ic cabinets and incorporating cr it ical

components manufactured in technical col laborat ion with Sanyo of

Japan, BPL Televis ion are leaders in the market- in qual i ty and in

performance.]

CURRENT MARKETING & BRANDING PLAN OF BPL LTD.



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The group has a lways been seen as an e lectronics engineer ing

group, unl ike many of i ts compet i tors. Today i t makes everything

from the cabinet to the electronic tuner i tsel f and buys the picture

tubes f rom Indian suppl ier. This in i tsel f is seen as a t ransi t ion of

BPL f rom an engineering group to more diversi f ied group deal ing

r ight f rom consumer electronics to cel lu lar services which in short

span of t ime the group ha achieved wi th t remendous success. The

BPL group is lot shy, introverted, but excited about the qual i ty of i ts

products. I t is not surprising that over the past years, the group has

quiet ly set in motion a wide ranging, strategic plan to establ ish i tself

as the undisputed leader in consumer e lectronics. Over the last

coupl e o f years BPL has in troduced a s tunn ing a rray o f new

products; washing machines, vacuum c leaners, ref ri gera to rs ,

microwave ovens. In audio, i t has widened i ts range dramat ical ly.

Soon to come gas stoves wi th bui l t in l ighters, mixer-gr inders,

mineral water machines. In just 10 years, sales have zoomed f rom

Rs. 19 crores to Rs. 1000 crore. BPL in the f ield of colour TVs has

left behind old t ime rivals Videocon & Onida . In audio segment the

sales of BPL is second only to PHILIPS who is the market leader. In

VCD, BPL SANYO was the market leader with a 17 percent share of

Indian made machines. . In color TV components, the group has 65

percent of the market for elect ronic tuners. , f lyback t ransformers

and def lect ion yokes, supplying to many o f i ts competi to rs . I n



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medica l e lectronics, i t has 60 percent o f the e lectronic tuners,

f lyback transformers and def lect ion yokes, supplying to many of i ts

compe ti to rs . I n med ical e lectron ics, i t has 55 percent o f t he

electrocardiogram market and 50-60 percent o f the ICU moni tor

market . In the Epbaxs, the group has the largest user base in the

country. Some conservative and shy which now to a large extent

has been able shed i ts image to largely because of the involvement

of BIG B in the advert isement which in i tsel f was seen as mega coup

or event.

BPL has always invested money f i rst into factor ies and then into

market ing. The group has high bel ief in vert ical integrat ion, which

shows the conf idence of the company which takes pr ide a in work

and that be lie f i s re flected prominent ly in the adver tisement as

BELIEVE IN THE BEST. The group bel ieves in using engineering

superior i ty to of fer the best , t rouble f ree products in the market

place. Stress consumer pul l , not dealer push. In the long run, this is

t he mos t p ro fi tabl e rou te o f eve ryone manufactu re r, dea le r,

consumer.

Smoother the competi t ion with range as i t keeps both the consumer

and dea le r happy . I t uses the top-o f- the- li ne p roducts to gain

at tent ion. The rub-of on the ent i re range down the l ine wi l l work

wonders. BPL is also running dealer promotion schemes but not to

the extent thei r compet i tors indulge instead they bel ieve more on



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advert ising due to the fact that i f the promotional spend crosses and

spend that means they are cutt ing their brand in the long run. So for

dealer they look at high margins t rouble f ree performance so the

customer wont hassle him and a constant f low of new products on

al l factors BPL has got i ts act together. BPLs range strategy works

on two levels. A t the f irst one , the g roup i s pushing into every

c on sum er d ura ble ca teg or y in an a tte mp t to c re ate an a ll-

encompassing umbrel la brand much l ike those of leading Japanese

companies. I t i s se lecting dealer showrooms at pr ice locat ions

across the country and turning them into BPL Gal ler ies that stock

and display only and al l BPL products. The main object ive of the

BPL Gal le ries i s to show the pub li c the w id th o f BPL s p roduct

range, bui ld corporate image and sales. The second level of BPLs

range strategy is most obvious in the Rs. 1,500 crore audio market.

The one with Rs. 1500-3000 stereo portable segment (popular ly

known as two-in-ones) wi l l become the largest segment volume wise

overtaking mono portable.

The BPL g roup i s s lowl y mov ing away from i ts core a reas o f

enter ta inment e lect ron ics and consumer durable. But not a ll i ts

diversi f icat ion have been successful . I t was this same tenacity that

helped the BPL group f loat a h igh- technology company in a very

shor t t ime. BPL Mobi le , one of the ce llular serv ice prov iders in

Bombay, stands out for jumping into the f ray wi thout any foreign



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partner . BPL Mobi le and s imultaneous d ivers i fi cat ion s into the

power ski lls of i t s the BPL groups at tempt to move away f rom the

highly competi t ive entertainment electronics sector, i ts mainstay al l

a long. They have entered power sector because of i t s h igh ent ry

barr iers for smal ler p layers. S ince telecom and power are h igh

turnover areas the dependence on entertainment elect ronics wi ll

reduce but very gradual ly. The var ious companies are in s ix main

areas of operat ions entertainment electronics, appl iances, telecom,

power, electronics and TV components and international operations.

STRATEGY

F ac ed with a ma rk et wh ere p rodu cts ar e c onve rg in g o n th e

te ch nolo gy fro nt, BPLs s tra te gy to ze ro in on two c rit ic al

di f ferent iates; brand bui lding and cost leadership. Together, this is

expected to deliver the ult imate strategic weapon, value.

Differentiation : last four years along, the BPL group has splurged

Rs.214 crore on adver tis ing campaign. To good effect . A recent

survey by the Bangalore based market research f i rm, Gal lup MBA

India, reveals that BPL is the s ix th most popular in the count ry

today. Not surprisingly, the group has valued the BPL brand at Rs.

611 crore. According to Trisys Research, the market ing consultancy

company, which d id the valuat ion for BPL: The huge amount o f

money spent by the group in st rengthening i ts brand must be seen



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as an investment and insurance. Investment because this wi l l drive

future sales, and insurance because the strong brand is expected to

keep the competi ti on a t bay and pro tect BPL s earnings in the

process.

To small extent has that helped BPL actual ly expand i ts CTV market

share in the fact of t ransnat ional competi t ion. In 2002-03, when the

consumer electronics industry reported stagnant sales BPLs CTV

sales grew by 15 per cent. But BPL did not have a st raightforward

brand posi tion ing s tra tegy. On the other, to e ffect ive ly set i tsel f

apart as an Indian electronics major capable of being on i ts own.

BPL cannot af ford to overplay the Sanyo part. In fact , the ent i re

st rategy revolves around posi t ioning BPL as the best India has to

of fer. Hence the choice of Amitabh Bachchan, and signature l ine,

Bel ieve in The best. The campaign conveys on clear message: any

BPL product you pick up is the best in terms of quali ty, technology

and value for money.

Technology Leadership : Underscoring the di f ferent iat ion st rategy

is, of course, BPLs technology leadership. Whi le an annual R&D

budget or Rs. 6.45 crore in 2004-05 ford not show great commitment

to R&D, that hasnt stopped i t f rom shopping for technology to keep

pace wi th market demand. For instance, the groups f i rst venture

into inst rumentat ion came in the wake of a technology partnership

w ith B ri ti sh Phys ical Laborat or ies o f the UK. The f oray i nto



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consumer electronics in 1982, and subsequently, into the domestic

appl iances segment was driven by a t ie-up with Sanyo Electric, and

the proposed colour picture tube plant wi l l be set up in technological

collaboration with the $ 48.41 bil l ion Toshiba Corp. of Japan. Once it

enters a segment, the group makes i t a point to quickly broad base

its product portfol io.

Economies of Scale : Behind BPLs h igh,. Market presence in

consumer e lectronics are two cri ti cal factors: I ts g lobal scale

manufactu ri ng and h igh ve rt ical i ntegrati on . I n CTVs. W hi ch

contributes 29 per cent of the f ive l isted companies sales of $3,102

crore, BPL has consol idated capacit ies under the f lagship BPL Ltd.

Besides the total capacity has been expanded from 8.30 lakhs CTV s

a yea r to 10 .3 0 la kh s, and BPL pla ns to do ub le it. I f sc ale

economies lowers per uni t cos t, BPL s h igh degree o f ver ti ca l

integrat ion enables i t to attain higher value addit ion for every rupee

of sales; the group manufactures most cr i t ical components l ike

def lect ion yokes, t ransformers, and tuners- in house. In 2002, in

p ar tne rsh ip with Vid eo con , it to ok o ve r th e U tta r P rad es h

governments a il ing colour p ic tu re tube manufac tu ring fac il it y,

Uptron, under a rehabi l i tat ion package formulated by the Board for

industrial and Financial Reconstruct ion. The unit , which was set up

in technical col laborat ion wi th Toshiba in 1989, has al ready been

refurbished and put on stream. The effect of BPLs cost management



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is evident in 2003-04 despi te a high interest burden and the large

discounts of fered to the consumers, the average margin on CTVs

went up by Rs. 450.

Business Portfolio

Clearly, the groups cash-cow is i ts TV business, which contr ibutes

33 per cen t o f i ts sales . According to MARG-ORG, the marke t

research f i rm, BPL has a market share of 19 per cent. For at least

three to four more years, CTVs wi l l cont inue to drive BPLs revenues

and earnings. E ffor ts have been made w i th in the company to

improve i ts distr ibut ion network and systems with a view to achieve

improvement of qual i ty and they have also effected a reorganizat ion

of markets and distr ibut ion teams of i ts various group companies by

bui ld ing a central market ing organisation which ensures that the

company cont inues to react fast to changing market condit ions. This

re-organisation was completed in March 03.

THE 4Ps

PRODUCT ANALYSIS CTVS

Colour televisions account for 37% of al l TV sets sold in India , 21

CTV is the largest sel l ing product in CTVs. At present the market is

in a growth stage and current ly there is a boom in the market. BPL

is producing expected products which has a set of at tr ibutes and

condit ions that buyers normally expect and agree to when they

purchase a product. In this category BPL offers features such as 150



29/101


programs (channels), Cable readiness, Bass expander, Chi ld locking

and a host of others. But of late, i t has started making Augmented

products that meets the customers desires beyond their

expec ta ti ons. The up g rada ti on o f p roduct qua li ty i s t hrough

digi ta l izat ion and according ly the company is coming out with a

range of high end digi tal products l ike digi tal camera, digi tal home

theater systems and digi ta l versat i le disc player. In the televis ion

industry, i t is the product, which drives the brand. BPL is launching

new products to w iden i ts p roduct m ix . BPL i s l engthening i ts

product l ine of CTVs by adding more i tems within the l ines present

range.



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HOME APPLIANCES PRODUCTS

Product Range

Product Specifications

BPL LER Specifications

Price Rs (MRP) 13900

Brand BPL

Screen Size (Inches) 20

Type of Screen STD

Sound Output (Watts) 125

Child Lock YES

Remote YES

Channel Scan YES

Sound Quality STEREO

Auto Volume Leveller YE S

Multi Language OSD Menu No

Warranty Years 1

BPL KTR Specifications



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Price Rs (MRP) 7690

Brand BPL


Type of Screen STD


Child Lock YES

Remote YES

Channel Scan No

Sound Quality MONO

Auto Volume Leveller No


Warranty Years 1



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BPL FHR Specifications

Price Rs (MRP) NA

Brand BPL


Type of Screen FFST


Child Lock YES

Remote YES

Channel Scan YES




Warranty Years 1

BPL EMPEROR II Specifications



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Brand BPL


Type of Screen SUPER FLATSound Output (Watts) 240

Child Lock YES

Remote YES

Channel Scan YES


Auto Volume Leveller YES


Warranty Years 1



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BPL NSR-29 Specifications


Brand BPL


Type of Screen SUPER FLAT


Child Lock YES

Remote YES

Channel Scan YES


Auto Volume Leveller YESMulti Language OSD Menu No

Warranty Years 1



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BPL NEPTUNE Specifications


Brand BPL


Type of Screen FFST


Child Lock YES

Remote YES

Channel Scan YES




Warranty Years 1

CATEGO

RY

Models Price Range Segment

Share

14 KSR 14 KTR14 Rs. 8900-9900 16%

20 LCR 20 LVR 20 Rs. 11900- 41%



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15400

21 FPR 21, FWR 21, FDR

21, FQR 21, FTR 21,

FHR 21, FXR 21.

Rs. 13500-

19000

38%

25 BXR 25 BQUR 25G Rs. 20000-

22500

5%

19 NQR 29 NQR 29 PS Rs. 27000-

29900

1%

BPL has also introduced the concept of l ine featuring by promoting

low-end promot ional models to serve as t raf f ic bui lders to at t ract

new buyers.

The other big factor in the 21 segment is the gradual shi f t to the

F&FST (ful l and f lat square tube), which al lows for bet ter v iewing.

India is expected to go the way of the rest of the world which prefers

F&FST. MNCs have been promot ing F&FST in a big way because

the margins are higher there. Even as more consumers are wi l l ing to

wri te out b ig cheques fo r feat ure packed TV set s, eno rmous

potent ial is crystal l izing below. In the market cal led India, the best

and the obsolete products both can sel l s ide by side in substant ial

numbers.



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Washing Machine

BPL ABS45D Specifications


Brand BPL

Type FULLY AUTO

Loading Top

Size(Kgs) 4.5

Hot water Option No

Self Timer YES

Preset washes No

Detergent Dispenser NoDigital Controls YES

Rat Mesh YES

Warranty(Years) 2

Castors No

BPL ABS 45 DELUXE (4.5 Kg)

Other Features:

Approx. Price Rs. 12,327

Fully automatic

Top Loading



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Quiet operation

Perfect water control

Auto softener dispenser

Safety device to prevent over heating

Pros: Price, performance, low electricity consumption,

Cons: No hot water wash.

BPL ABS 45 SD (4.5 Kg)

Other Features:


Top Loading

Quiet operation

Auto softener dispenser

Safety device to prevent over heating

Cycle end buzzerBPL Distribution network


BPL Factory

Branch Towns/C&F

Distributors

BPL Galleries Direct Dealers


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BPL has about 8000 dealers a l l over Ind ia. I t regular ly conducts

dealers meets to tel l them about i ts new product and future plans.

The latest being Techno Summit 03 held in month of December. The

meet was held in the c it ies o f Bagalore, Hyderabad, Calcu tta,

Chennai, New Delhi, Kochi and Lucknow.

PRICING OF COLOUR TVS

The demand fo r CTVs i s sensi ti ve t o i ts p ri ci ng . W it h a l itt le

reduct ion in prices the demand shoots up rapidly. The major barrier

to penet rat ion and market expansion has been the h igh pr ice in

relat ion to purchasing power of an average Indian. In order to price

open and expand the marke t, manufac tu rers a re bout to adopt

strategies to lower prices. BPL has been affected by price cuts of i ts

compet i tors wi th i ts market share fall ing to 22% at present . Within

the new pr ice paradigm a brand such as BPL would cont inue to

command a premium over other brands, due to a higher perceived

qual i ty and the brand va lues i t en joys. BPL went for qu i te a few

promotional schemes last year. Regularly dropping prices create a

dissat isfaction among the consumers who have bought the same

CTV Model earl ier.


Retailers

Customers


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CTVs value and pr ice are current ly perceived in 30/70 rat io which

means that Indian consumers st i l l go for the lower priced versions,

or at least a majori ty of them. BPL has priced i ts products in such a

way that i t can cater to a l l category of buyers. The company has

been very aggressive in i ts pricing which has led to a sales strategy

of receiving 100% advance payment from i ts dealers and giving i ts

dealers a margins of about 10% on the MRP. Though the ef fect ive

margin received by the dealers is e f fect ive ly the lowest for BPL

CTVs , yet i t g ives them higher turnover which ul t imately leads to

higher profi ts. Recent ly three successful pr icing st rategies which

received overwhelming consumer response were:

Financing at 0% rate of interest

No profit No loss sale scheme for its best dealers in Delhi.

Attractive price reduction due to in-house development of some

components.

CTV industry is wi tnessing a general t rend towards lower pr ices.

New CTV sets come cheap, thanks to exchange meals and easy

f inance of fered by leasing CTV manufactures. Pr ic ing of CTVs is

done more on values perceived by the customer and less on cost

plus markup basis.



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BPL is t ry ing to reduce costs as a resul t of concentrated ef fort by

the companys designers, engineers and vendors to reduce them. I t

i s us ing opt ional feature pr ic ing, specia l event pr ic ing and low

interest f inancing as forms of promotional pricing.

PROMOTION MIX

The increasing competi t ion in colour television industry has forced

the marketers to go for innovat ive promot ional schemes. The total

amount to be spent on advert ising and promotion by BPL is Rs. 310

crore this year. I t spent Rs. 240 crore in 2003.

BPL rel ies more on consumer pul l type of promotional strategy. The

effec ti veness i .e . balance o f push vs pul l t ends to vary across

regions in India. In consumer electronics industry, the north and

west are seen to respond more to push and the east and south are

comparat ively brand loyal. As competi t ion heightens, companies are

being compel led to cont inual ly widen the i r product range. Thei r

investment in tools, used to make dies and ki ts of CTVs, are rising,

BPL launches four to f ive models each year. They have f ive tools

and each tool costs Rs. 5 crore to set up. The brand bui lding act ivity

has become important for al l the companies and this basical ly to

keep themselves updated with consumers percept ion of a part icular

brand.



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BPL has around 160 exclusive showrooms at prime locat ions across

the count ry ca l led BPL gal ler ies that s tock and d isp lay on ly BPL

products. The main object ive of BPL gal leries is to show the publ ic

the width of BPLs product range, build corporate image and sales.

BPL had announced end of i ts mult i -crore associat ion with Amitabh

Bachchan in 2003 s ince h is popular i ty is on a down swing in TV

commercials and media campaigns, especial ly in metros and urban

centers. Current ly BPL is using Amitabh Bachchan only for i ts rural

market ing campaigns. BPL wi l l a lso exi t f rom niche programs l ike

BPL Oye, the popular Hindi f i lm song countdown show on Channel V

due to the fact that i t has been unable to qual i tat ively di f ferent iate

from competi t ion and retain edge in this genre of progamming. I t is

t rying to bu ild an emot ional bond wi th consumers. I t moved to

establish a bond with the younger generat ion the key to future

market lay in tying the brand in inextricably with entertainment. The

commercial inspired by the blockbuster movie, Home Alone evoked

sympathies ( thanks to the kid) and warmed i ts way inside every

fa mil ie s h ear t B PL is pr oje cti ng its elf a s a co mp an y man y

advertising entertainment products.

BPL has decided to capi tal ise on Indias near rel ig ious fever for

the game and get into cricket related sponsorship in a big way in

the Cricket World Cup in2003. BPL has also launched i ts Player



43/101


of -The Week program for in ternational cr icketers on which i t i s

spending Rs. 2.56 crore.

Competitors: Samsung has announced that i t would signi f icantly

increase i ts advert isement and promot ion spending and have new

promotions during the forthcoming Cricket World Cup Phi l l ips is also

focussing on brand bui lding riding on the back of the youthful image

them and of fer ing the la test technology products at competi ti ve

price. Akai is offering various exchange schemes to boost i ts sales.

In last 2 years it had come out with more than 11 such schemes.

ANALYSIS

I t i s t he tendency o f company to acqui re a major share in the

market. Now question arises how to achieve it ?

Any consumerable product that has been launched in the market to

face competi t ions, whether i t is Videocon Internat ional, Daewoo or



44/101


BPL a l l have to face neck to neck compet it ion. In the company

during Deewali fest ival, al l the companies are engaged in evolving

technolog ies to a tt ract t he cus tomers . Even they a re ready to

sponsor the national and internat ional games. Recently Companies

l ike BPL and Videocon have announced an average of its

advertisement and promotional spending.

VIDEOCON INTERNATIONAL LIMITED

Introduction

Videocon interna tional L td (VIL) , t he f lagship company o f t he

Videocon Group is a leading producer of television sets, audio and

video systems, Aggressive market ing, launch of internat ional qual i ty

goods at lower prices, and a strong distr ibut ion network have made

Videocon a household name. I t enjoys 27% market share in colour

TV.



45/101


During Fy03-04, Videocon Narmada Electronics, a group company

engaged in the manufacture of picture tubes was merged wi th the

company. The merger wi l l result in backward integrat ion benef i ts for

videocon.

Videocon has t ied up with internat ional giants l ike Sansui for middle

range audio products, Toshiba for CTVs and VCD Players. Videocon

h as a lso an nou nc ed a ti e- up with ke nwo od Co rp ., Ja pa n to

manufactu re and marke t Kenwood s p remium range o f audi o

products in India. The company faces a st i f f compet i t ion fol lowing

the entry o f in ternational leaders l ike Sony, Akai , Samsung, and

Panasonic into the Indian markets.

V ideocons p roposed d iversi fi ca tion into unrelated a reas l ike

construct ion, power generat ion, oi l ext ract ion, and petrochemicals

have been she lved fol lowing a cash c runch w ithin the g roup.

V ideocon, however has focussed only on i ts core bus iness o f

consumer electronics.

V ide oco n ke ep s in to uch with the t ime s, to e nsu re th at th e

customers stay ahead over the years, Videocon has offered state-of-

the-art t echnology and interna tional qua li ty w ith venavkable

consistency. Now i t has a hos t o f i nnovat ive p roducts l ike the

P lasma TV, t he W ebTV, Deg ita l V ideo D isc, Doubl e cascade

washing machine, combi ref rigerator, the dishwasher - which are

bond to revolutionize the l i fe style.



46/101


V ide oco n ha s al wa ys , an d wil l a lwa ys pu sh the fr on ti er s o f

technology to give products that improve the qual i ty of your l i fe. No

wonder, i t enjoys the t rust and conf idence of mi l l ions of sat isf ied

customers.

Videocon has a strong commitment spanning the rapidly surging are

of Business Electronics. I t aims to revolut ionize the corporate world

by launching p roducts tha t l end the cut ti ng edge to bus iness

professionals. And help them be ready for the var ious chal lenges

tha t the a rena o f modern bus iness demands V ideocon has got

together with leading organisat ions in the world with an unfaltering

dedication of bringing only the best to be customers.

Videocon was a relatively new entrant to the TV market as compared

to others. St i l l , i t managed to carve out a signi f icant share of the

market by essent ia l ly ut i l is ing two tact ics. One, i t managed to sel l

cheaply playing on volumes and second, i t outsourced many of the

app li ances i t sol d and managed to get l ong t ax b rakes on i ts

manufac tu ring uni ts l ocat ions because o f t he g roups pol it ical

connect ions.

These strategies paid rich dividends in the price sensit ive domestic

market, and the company managed to carve out signif icant shares in

most of the consumer durables segments. But as the market opened

and became technological ly driven, Videocons image of being a low

cost suppl ier became i ts bane, as the consumer normally associates



47/101


price wi th quali ty. Thus, i t lost i ts leadership in the CTV market to

BPL which was associated more with quality than Videocon.

VIDEOCON - MISSION AND OBJECTIVE

Leadership

Through

technology

innovation

quality

performance

India Today, the world tomorrow

The Videocon symbol. It reiterates the ethos of a company dedicated

to mainta in ing the h ighest in ternat ional s tandards of excel lence

through qual i ty, technology and innovat ion. For over a decade now,

Videocon has been br inging the latest and very best in Consumer

Electronics and Home Appl iances. Successfully adapt ing the best of

technology to suit . Indian needs and craft ing i t to improve qual i ty of

l i fe

The new Symbol of Videocon asserts i ts passion for global impact,

and the two Es on other side represent to groups wide spectrum of

i nteres ts ranging f rom Elec tron ics to Energy . A symbo l tha t

proclaims a paradigm shift. A sign that represents the new force that



48/101


is Videocon. Thus recapi tulat ing own pr inciple of reaching out and

touching the t ime of mil l ions of people worldwide.

THE COMPANY STATUS : ITS PENETRATION IN THE MARKET

Business for Videocon Internat ional Ltd. (VIL) has always been a

game of growth through rapid widening of the f ie ld of opportuni ty.

While training out wide and penetrating India to the deepest possible

depths was once the natural future course for this distr ibution driven

company, now i t is an imperat ive and i t involves every department

including R&D.

Videocon believes that they are the leaders in thei r respect ive

product categories, But growth made a minor come-back in 2003-04

thanks to the buoyant CTV market with VILs turnover r ising by 23%.

In 2004-05 its turnover increased by 12%.

V ide oco n h as ho w d ive rs if ie d i ts elf in to po we r, p etro leu m,

information technology and Real estate.

Videocon doesnt consider competi t ion as a weakness according to

i t , i t is the dominant brand that gets af fected by the entry of new

comes That s the reason they were not surprised when their CTV

share s li pped . They were ant ic ipati ng i t. V ideocon has been

describ ing i tse lf as a leader over . the years. Having established



49/101


i tsel f as a powerful brand. I t has launched many sub-brands catering

to defined market segments.

They have Bazooka for the Top-end of the market. For the middle

they have Turbo-tough and f inal ly for the younger consumers,

they have the 14 Private. The image Videocon is of as aggressive

technological leader i t was the 1 s t brand to launch PIP, Surround

sound and now Bazooka Videocon is using its brand equity built over

the years to help i ts sub-brands.

All Videocons products are manufactured in India, The company s

state of art p lants. The level of automation in Videocon plants is

comparable to the best plants in the world. The company entered

into technical col laborat ions wi th var ious internat ional ly renowned

MNCs for i ts wide products. This col laborat ion could be further

straightened to maintain Videocons, leadership posit ion as wel l as

take care of the new brands being introduced in the market.

As for as a consumer is concerned. There is no difference between

a Sony made in India and a Videocon made in India.

In the big ci t ies Videocon is making f i rst enough efforts to hang on

i ts cur rent marke t share . The number i t wants w il l come f rom

products designed specif ically for low end use.



50/101


Videocon downs to be far ahead part icularly on engineering products

to suit local ized needs. Videocon says that the stripping down job

has to be acutely market sensit ive. So i t has got a f ix on small town

value perceptions and cut-down those features deemed irrelevant.

According to Videocon - Satell i te TVs bringing new complexit ies to

demand patterns.

Five years ago smal l towns accounted for f i rst 1% of the brands

CTV volumes now the proport ion stands at over 17%. The upshot ;

higher pr ice real izat ions. Dealer margins and sundry sel l ing costs

are lower in small towns, so VLL gees a layer f ract ion of the pr ice

the consumer pays. This is one reason that the strategy is sound at

least f rom a medium term point of v iew. According to Videocon

compet i t ion, is less severe further down the town hierarchy so

more in smaller towns the h igher i s the p ro fi tabi li ty, bet te r

margins, better logistics and costs.

I t could be ages before everyone is ready to buy a TV.

Videocon is also t ry ing to break new ground wi th refr igerators and

washing machines by playing the "price point game"

Videocon bel ieves that str ict ly geographical urban rural divisions

are unreal ist ic in a country where l i festyles are so disparate. For



51/101


Videocon i ts not geographica l any more but a funct ion of soc io-

economic behaviours.

Videocon had started sel l ing Toshiba and Sansui as premium CTV

brands whi le Sansu i f lanks V ideocon, the b rand Toshiba w il l

spearhead the companys projection of quality.

Needles to say, Videocon is banking heavi ly on eff icient operat ions,

with money being puri f ied mainly into things which del iver results, to

maintain the pr ice advantage i t enjoys in so many markets. Bet ter

computer software is another big help. The company invested Rs. 60

crores on software in 2005.

Domestica l ly , by 2005-06, the company expects to be se ll ing 16

mil l ion CTVs. But, by seeing the commanding heights the consumer

electronic business i t wants i ts annual capaci ty of CTV to be 3.5

mill ions.



52/101


Every Where and For E very body.

THE 4 PS

PRODUCT ANALYSIS/PRICE ANALYSIS

CATEGORY Model Price

36 cm 3651 R

3609 R

3617 R

11,490

9,990

8,990

51 cm 5122R

5120R

13,990

11,990

53 cm 5414R

5420 R

20,490

16,990

7501 33,990



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Features of Videocon 25 Bazooka Boss (6400R)

86 Program Auto Search Memory

Computer Controlled self Demonstration

Flat & Fruit square Tube

Cable Ready- Hyper Band Toner

Bazooka Worfee

200 W PMPO

CD Comparable

Child lock

Channel Scan

Bazooka Impact (5414 R)

100 programs auto search memory

personal Preference on each of 100 programs

Flat and Full square Tube

Computer controlled self demonstration



54/101


Table ready S & Hypes band Tuner

Bazooka Woofer

200 W PMPO Sound output

CD Compatible

Child lock

Channel Scan

Right f rom the s tar t, V ideocon has endeavored to enhance the

qual ity o f l ife . Breaking new grounds innovating. Explor ing the

worlds most advanced technologies to give the customer the f inest

product.

Videocon - Truly the pioneers in taking technology to Indian homes.

V ideocon has a lot o f F irst s . t o i t s c redi t l i ke Ind ia s f irst

Television with PIP (Picture in Picture, FSFT Hi l l f lat square Tube),

Surround sound and also the Bazooka Technology

As far as the pricing policy of Videocon is considered, Init ial ly the

policy adopted by Videocon was to se ll cheaply which paid r ich

returns in the p ri ce sensi ti ve domesti c marke t. But now where

consumers a re no longer p ri ce sensi ti ve The marke t i s more

technological ly dr iven. They have star ted associat ing pr ice with

qual i ty and started considering Videocons product as low qual i ty.



55/101


This was the 1s t s tep and company s ta rt ed l aunch ing good

technolog ical ly p roduct s which were h ighly p ri ced and took

col laborat ion to launch foreign brand names in the higher segment

of the society and keeping its image as it was for the price sensit ive

customer

Exchange of fers, schemes, gi f ts were some of the promot ional

tools adopted by Videocon

As wel l as f inancing schemes and good dealer margins.

Model Name DescriptionPrice

(Rs.)

V-NA-65 NF

VIDEOCON,fully auto,top

loading,6.5 (Kgs),Hot water

Option,Self Timer

16990

V-P-1000 AFDCVIDEOCON,fully auto,top

loading,10 (Kgs),Self Timer29990

1211VIDEOCON,fully auto,top

loading,4.5 (Kgs),Self Timer16400

V-P-0600 AFVIDEOCON,fully auto,top loading,6

(Kgs),Self Timer19990

V-P-45 FDXVIDEOCON,fully auto,top

loading,4.5 (Kgs),Self Timer

12290

V-P-55 BTVIDEOCON,semi auto,top

loading,5.2 (Kgs)8990

V-NA-70 TSVEDEOCON,semi auto,top


http://servlet/ModelDetail?pid=6&mid=783http://servlet/ModelDetail?pid=6&mid=787http://servlet/ModelDetail?pid=6&mid=778http://servlet/ModelDetail?pid=6&mid=785http://servlet/ModelDetail?pid=6&mid=788http://servlet/ModelDetail?pid=6&mid=790http://servlet/ModelDetail?pid=6&mid=775http://servlet/ModelDetail?pid=6&mid=783http://servlet/ModelDetail?pid=6&mid=787http://servlet/ModelDetail?pid=6&mid=778http://servlet/ModelDetail?pid=6&mid=785http://servlet/ModelDetail?pid=6&mid=788http://servlet/ModelDetail?pid=6&mid=790http://servlet/ModelDetail?pid=6&mid=775


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V-NA-911 FVIDEOCON,fully auto,top loading,4

(Kgs),Self Timer12490

V-P-0700 AFVIDEOCON,fully auto,top loading,7

(Kgs),Self Timer

23990

V-NA-550 TDXVEDEOCON,semi auto,top


V-NA-35 TDXVIDEOCON,semi auto,top


V-NA-550 TVIDEOCON,semi auto,top

loading,5 (Kgs)8690

VIDEOCON 45 FDX (4Kgs)

Other Features:

Approx. Price Rs. 12.990

Fully automatic

Top Loading

Capacity 4 Kg

6 wash programmes

Auto soak

Stainless steel drum

VIDEOCON 50 T

Other Features:


Semi automatic

http://servlet/ModelDetail?pid=6&mid=784http://servlet/ModelDetail?pid=6&mid=786http://servlet/ModelDetail?pid=6&mid=774http://servlet/ModelDetail?pid=6&mid=781http://servlet/ModelDetail?pid=6&mid=782http://servlet/ModelDetail?pid=6&mid=784http://servlet/ModelDetail?pid=6&mid=786http://servlet/ModelDetail?pid=6&mid=774http://servlet/ModelDetail?pid=6&mid=781http://servlet/ModelDetail?pid=6&mid=782


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Top Loading

VIDEOCON 55 F

Other Features:


Fully automatic

Top Loading

VIDEOCON 55 TDX

Other Features:


Semi automatic

Top Loading

VIDEOCON 60 BT

Other Features:


Semi automatic

Top Loading



58/101


Videocon V-NA-65 NF Specifications


Brand VIDEOCON

Type FULLY AUTO

Loading TOP

Size(Kgs) 6.5

Hot water Option YES

Self Timer YES

Preset washes YES

Detergent Dispenser YES

Digital Controls YES

Rat Mesh No

Warranty(Years) 2

Castors YES



59/101


Videocon V-P-1000 AFDC Specifications

Price Rs (MRP) 29990Brand VIDEOCON

Type FULLY AUTO

Loading TOP

Size(Kgs) 10

Hot water Option No

Self Timer YES

Preset washes YES

Detergent Dispenser YES

Digital Controls YESRat Mesh YES

Warranty(Years) 2

Castors YES



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Distribution

Videocon has a network of over 4000 dealers, backed by over 80

service centres al l are India, equipped wi th the latest technology

and manned by ski ll ed techn iques t ra ined as per i nterna tional

norms.

DISTRIBUTION NETWORK


Factory

Distributors

Retailers Videocon

PlazaDirect

Dealer

s

Consumers


61/101


PROMOTION

As competition increases, companies are forced to continually

increase their product range with an increase in the number of sub-

brands and cont inuously advert ise and promote thei r product so i t

r eaches t o t he r ight cus tomers . The re fo re i t has f orced t he

marketers or the producers to go in for new promot ional schemes

and incentives which might look attractive to the buyers.

Few years back, Videocon was Okay with umbrella brand

advertising, with the spotl ight on CTVs .

V ideocon c reated sub-brands such as Bazooka, Cha llenger,

Budgeting and Freedom and the communicat ion went from generic

t o spec ifi c i t happened wi th a ll the p roduct cat egor ies and

according to the company, i t was the f i rst to take a lead. Though

there was sub-brands innovation and technology were to remain

the two key factors in accentuating the overall brand image.

In CTVs Bazookas campaign plays on sound qual i ty. Private the

14-inch CTV is aimed at young people who want their own CTV sets.



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Videocons urban advert ising cont inues to bui ld brand values for the

products, and dealers are of fered mega incentives.-They were

offered Mercedes car and foreign tr ips in 2004-05

But Videocon was drawn into promot ions r ing to . In March 2004 i t

launched i ts Money back of fer a unique scheme for the 21-inch

Bazooka (Rs. 14,990) and the 14-inch pr ivate (Rs. 5,990), through

which Videocon promises to return the entire money in six years for

Bazooka and 5 years for the other two.

Earl ier in 2004, Videocon learnt from bankers that individuals were

stashing away large sums of money in banks. A qual i tat ive study

conf irmed suspicion that much money was being saved to make big-

t icket purchases later. Replacement market buyers are al l the more

on with postponement. So a reverse credit scheme was devised

to get that money out o f the bank on the assured that the money

wou ld be returned later . E ffec ti ve ly V IL has taken loans f rom

customers and paid all the interest in kind (CTVs) straightaway.

Though V ideocon i s heavi ly i nto adver ti sing but i t i s not i nto

celebri ty advert ising l ike BPL is but st i l l i t has lef t an impact on the

consumer s m ind about i ts p roducts because they consider

themselves as a dominant brand and the leader in the CTV market.



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MNCS

SAMSUNG HOME APPLIANCES

Samsungs e lectronics re la ted businesses consti tu te the largest

chunk of the Groups overal l business Here is a brief descript ion of

companies and their respect ive products associated with electronics

and communication.

COMPANIES RELATED TO ELECTRONICS INDUSTRY

The Samsung companies related to the electronics industry include

Samsung Electronics, Samsung SDI, Samsung Electro-Mechanics,

Samsung Coming, and Samsung SDS. These af f i liates produce,

market , and sel l a wide var iety of elect ronic parts and components

(including next generation memory chips, computer and

telecommunicat ions equipment , color TV picture tubes, and glass

bulbs). They also develop computer systems and produce general

electronics and precision machines.

All these companies share the same goal of becoming world-class

h ig h- te ch com pa nie s b y ea rl y in th e 21 st c en tu ry and ar e

concent rat ing the i r investments into promis ing future f ie lds to

ach ieve tha t targe t. Despi te being independent , sys temati c

cooperation takes p lace between the companies that enable the

development of state-of-the-art electronic products.



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Samsung Electronics, the world's leading maker of memory devices,

also leads the world semiconductor industry in development af ter

designing a 256-megabit DRAM (dynamic random access memory),

al-gigabit DRAM, and the entire production process technology for 4-

gigabi t DRAMS. Samsung Electronics not only produces for the

world informat ion area (telecommunication equipment for system

and network businesses) , but a lso creates a r ich l ife for people

through developing electr ic appl iances and digi ta l and mul t imedia

products built around the latest technologies.

Samsung SDI puts much energy into developing new products and

furthering new high-tech businesses through securing future cutt ing

edge technology to react immediate ly to changes in the d isp lay

business environment . Samsung SDI received at tent ion f rom the

display business by int roducing Dynaf lat , the world 's best level of

completely f lat Braun tubes and from developing 42-inch and 50-inch

PDPs successful ly to diversi fy f lat display products. Samsung SDI

is also accelerating the development of EFD and FED.

SAMSUNG ELECTRO MECHANICS

Samsung Electro-Mechanics, a leading electronics and electric parts

and components manufacturer, concent rates on develop ing and

producing promising new products such as mult i - layer printed circuit

boards (MLBs), chip devices, parts for mobi le communicat ions, and



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optical/ thin-f i lm components. With 90% of the revenue coming from

exports , the company has posi tioned i tse lf as a wor ldwide parts

manufactur ing company and is now advancing in to the In ternet

business. Current p lans ca l l to concent rate on In ternet re la ted

products based on RF (high frequency) technology.

MANUFACTURING

For CTVs and Microwave ovens

Location : Noida , Uttar Pradesh

Samsung Ind ia has a s ta te-of- the-ar t manufactur ing faci li ty for

colour te levis ions and microwave ovens at Noida. Set up wi th an

investment o f Rs.90 crores, this h igh ly automated fac il i ty has a

manufacturing capacity of 500,000 units per annum. Samsung India

is manufacturing CTvs in the 14"-29" size segment at this facil i ty.

With a faster and f lexible product ion system in place, the Company

is str iving for greater customer sat isfact ion by making avai lable the

right product mix to the customer, in t ime, and at the right price.

The Samsung India CTV faci l i ty received ISO 9002, Cert i fication

from BSI, UK and STQC, DoE within eleven months of commencing

product ion, faster than any other Samsung subsidiary. With the

latest most, advanced manufacturing equipment l ike Auto Insert ion

Machines, Auto PCB Tester , Automatic Module Conveyor , H igh



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te mp era tu re tes ting ( 45 -50 OC) , Re li abi li ty te st, p rec isio n

measurements of CTVS, the Samsung CTV facil i ty is ful ly geared for

high speed, high volume and very high quality production.

Microwave Oven Facil ity : Seeing the high potent ial for the product

category, Samsung India set up a product ion l ine for microwave

ovens at Noida in March '99. Samsung is manufactur ing a l l the

current ly avai lable microwave oven models in the market a t this

faci l i ty, which has a product ion capacity of 50,000 units per annum.

Samsung which is the world's fastest producer of microwave ovens

having manufactured 50 mi l l ion microwaves in a short span of 19

years, is producing microwaves in the 20-28 l i t re capacity range in

India.



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SAMSUNG HOME APPLIANCES PRODUCTS

Microwave Oven

1875N-S

Features

7 Power Levels

Automatic Defrost Programme

24-hr Digital Clock

99 Minute Timer

Glass turntable

Specifications

Capacity:

Spacious 23 litres (0.8 cu.ft) oven capacity

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Power Output:

850 Watts Microwave

6 Power levels for cooking versatility - defrost, reheat

and cook

Auto Programmes:

Auto boil - boils rice and vegetables wi th a simple

touch of the Auto Boil function

Auto defrost

Auto reheat - drinks, chil led and frozen meals

TDS:

Triple Distr ibut ion System, distr ibutes microwaves

evenly throughout the oven, so that food is cooked

evenly throughout

Design:

Clear digital display for accurate informative control

Adds style and impact to your kitchen

Touch sensitive control panel for ease of use

Dimensions (External w x h x d):

489mmx275mmx393mm



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Colours:

White/Silver



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M183DNS

Features

Power Output - 850 Watts Microwave

Auto Programmes

TDS

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OTHER PRODUCTS

DIGITAL TV

- Worlds first to develop ('97.12) and mass-produce

('98. 10)

- Support high screen clarit y and have Dolby Surround

Sound

- Adopts high resolution and double progressive scan

methods

- Digital Conversion

- High fidelity 40 watt, 2-way, 4-speaker system

- PIP (Picture In Picture



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Flat-screen TV

- Completely flat Braun tube, which allows for a screen

without curves

- Distortion-free screen

- Adopts a 3 dimensional digital comb filter for a more

detailed picture

- The automatic control circuit recreates natural,

original colors

- Powerport speaker system makes you feel as if you

were there



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Marketing andBrandingStrategy



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MARKETING AND BRANDING

STRATEGY

MARKETING STRATEGY

Following are the key drivers of profitability in this industry:

Volume Growths: The low penetration levels of these products is a big

opportunity area and the industry is strongly taking this route of increasing the

production and sales volumes in order to make the most of the economies of

scale. With increasing consumption, the raw material prices have been moving

southwards, thereby enabling better profitability

Product Mix management: The challenge is to be able to have a healthy mix of

high-end products contributing to the bottom-line. This can only be achieved by

offering products which are unique and where the customer sees value in his

purchase. The customer is ready to pay more if she feels that she is getting

something, which will improve her life and enhance her lifestyle.

Product Innovations: It is also important to catch the changing trends in

consumer lifestyles and offer the right product at the right time. Basically, the

Companies must innovate on a continuous basis in keeping with the changing

consumer needs and to differentiate in the market.

Operational efficiency: It is important to gain overall operational efficiencies like

inventory management (Overall inventory less than 15 days), debtors



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management (Ideally nil bad debts and zero days operation). A good, committed

and loyal network also contributes significantly to the bottom line.

Technological advancements: Innovations and inventions will play a major role

in shaping of this industrys future. Technological advancement has always been

at the back of most of the peaks in this industrys growth. Right from the

introduction of colour picture tube to the recent technological advancement of

CRTs becoming pure flat, technology is the prime booster for this industry.

Advancements in future technologies like the LCD panels and DVD recorders

and the like will critically impact the industry. It is expected that by 2008, 33 per

cent of the worldwide demand will be met by LCD TVs and Plasma TVs.The core

to handling various market challenges is to protect the bottom line while being

competitive in the market.

Brand Positioning: Every purchase of the consumer is not guided by the

cheapest of the prices, but by the benefit that the Customer perceives for the

investment planned . Hence, it is critical to be appealing to the image seekers

while being relevant to the value for money seeker. With lifestyles improving and

becoming important to individuals personalities, the brands positioning and its

relevance to the consumer will become more important than ever before.

Customer Relationship Management: The experience that the consumer goes

through during the entire purchase cycle and the post purchase usage

experience is critical to the organisations future business. Managing customer

relations and the experience that is offered to her throughout will be a challenge

for all players.


7/29/2019 Marketing an

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Marketing and Branding Strategies of Consumer Durable Companies

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