STP FINAL REPORT 2

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AWARENESS OF VIDEOCON INDUSTRY

BY

Ragesh Nair

(5087)

Of

VISHWA VISHWANI INSTITUTE OF SYSTEMS AND MANAGEMENT

Under the guidance of

(Mr.Anand)

Associate Professor

A PROJECT REPORT

Submitted to the

FACULTY OF BUSINESS MANAGEMENT

In partial fulfillment of the requirements

For the award of the

POST GRADUATE DIPOLMA INMANAGEMENT

July 2010

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DECLARATION

I R.Ragesh Nair hereby declare that this project titled Awareness of Videocon Industry

is an original work carried out by me, under the guidance of Mr.. Anand (Associate

Professor). The report submitted by me is a bonafide work carried by me of my own effort

and it has not be submitted any other university or published any time before.

R.RAGESH NAIR

Pgdm-5087

Date:

Place:

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CERTIFICATE

Certified that this project titled Awareness of Videocon Industry is the bonafide work of

Ragesh Nair , who carried out the research under my supervision, certified further, that to the

best of my knowledge the work reported the work reported here is does not form part of any

other thesis or dissertation on the basis of which a degree or award was conferred on an earlier

occasion on this or any other candidate.

Date: Signature of the faculty Guide

Place: Anand

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ACKNOWLEDGEMENT

It gives me a great pleasure to express my sincere thanks to my Faculty Guide Mr.

Anand, for his valuable guidance during the course of my Executive Training and for his

help to complete all Reports, Presentations, etc.

I also like to thanks to my company guide Mr. Sunny Bhat for giving me an opportunity

to complete my Executive Training successfully in Videocon Industries LTD. & giving

me a proper guidance time to time during the training.

R.RAGESH NAIR

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CONTENT

Sr.

No.Particular Page No.

1 INTRODUCTION 07

2 RESEARCH METHODOLOGY 08-14

3 COMPANY OVER VIEW 15-31

4 INDUSTRY OVERVIEW 32-39

5 LITERATURE REVIEW 39-44

6 DATA ANALYSIS 45-55

7 FINDING RECOMMENDATIONS 56-60

8 CONCLUSION 61

9 Annexure 62-66

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CHAPTER-1

INTRODUCTION

Every business organization that comes into contact with the customer develops a perception in

the mind of customer. Today, in this competitive world every organization needs to know the

perception in the mind of customers. In order to gain mind share or heart share of customers

along with the market share is the main look out for the organization. Especially in consumer

electronics sector where the products are more less or same, the only way to leave positive

impact on customers mind and to gain competitive advantage by providing best possible

services to the customers.

Objectives of Executive Training

a) To find out the consumer satisfaction level of Videocon products.

b) To know the reputation of Videocon products in the market.

c) To understand its competitors in business.

d) To find the potential market for Videocon products.

e) To find the requirement of customers in the market.

Limitations

a) Data collected from the questioners may not be accurate.

b) Customers response may or may not be true.

c) Sample size may not be sufficient for conclusion..

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CHAPTER 2

RESEARCH METHODOLOGY

Research can be defined as a scientific and systematic research for pertinent information on a

specific topic. In fact, research is an art of specific investigation. Research is an activity and as

such the term be used in a technical sense. Research can be stated as the manipulation of things

concepts or symbols for the purpose of generalizing to extend, correct or verify knowledge

whether that knowledge aids in construction of theory or in the practice of an art.

Research methodology is considered as the nerve of the project. Without a proper well-organized

research plan, it is impossible to complete the project and reach to any conclusion. The project

was based on the survey plan. The main objective of survey was to collect appropriate data,

which work as a base for drawing conclusion and getting result. Therefore, research

methodology is the way to systematically solve the research problem. Research methodology not

only talks of the methods but also logic behind the methods used in the context of a research

study and it explains why a particular method has been used in the preference of the other.

The steps involve in the research methodology are:

Defining the Problem: In defining the problem, the researcher should take into account the

purpose of study, the relevant background information, the information, the information needed

and how it will be used in decision making problem, problem definition involves decision with

the decision makers, interviews with the industry experts and analysis of the data.

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Research Design: The research design tells about the mode through which the entire project is

prepared. The research design put down the Foundation of conducting the project. A good

research design will ensure that the research project is conducted effectively and efficiently

Formative the data source: It means from where the researcher collect the data. It can be

primary data or the secondary data as both sources are necessary in order to get the proper result.

Analyzing the data: After the data is collected, the researcher analyzed the data and edited them

and turned them in the useful tabulations. So, it became useful in report study.

Interpretation of the data: With the help of analyzed data researcher managed to prepare

project report. The analyzing of data will help the researcher to reach towards its objectives. The

interpretation of the data is required so that for others it is easy to understand study in simple

manner.

Report writing: The entire project should be documented in a written report. This is the final

step in preparing the project report. The objective of the report writing is to report the findings of

the study to the respective authorities.

THE PURPOSE OF RESEARCH

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a) Discover answers to questions through the application of scientific procedure.

b) The main aim of research is to find out the truth which is hidden and which has not been

discovered as yet.

c) Research helps us to gain familiarity with a phenomenon or to achieve new insights into

it.

d) To portray accurately the characteristics of a particular individual, situation or a group.

e) To determine the frequency with which something occurs or with which it is associated

with something else.

RESEARCH DESIGN:

Research design is important primarily because of the increased complexity in the market as well

as marketing approaches available to the researchers. In fact, it is the key to the evolution of

successful marketing strategies and programmers. It is an important tool to study buyers

behavior, consumption pattern, brand loyalty, and focus market changes. A research design

specifies the methods and procedures for conducting a particular study. According to Kerlinger,

Research Design is a plan, conceptual structure, and strategy of investigation conceived as to

obtain answers to research questions and to control variance.

The General study was converged as a specific study for Videocon. The study was initiated to

find out the consumer profile, brand perception and cross preference among Videocon and

Competitor brands.

Our approach to the research design tasks went through the following tasks.

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Information needed

?

Measurement and scaling Procedures?

Appropriate Data collection

?

Sampling Process and sample size

?

These issues are addressed as the following:

Research Type Descriptive Research Data Type Primary and Secondary data

Research Tool Questionnaire

Observation

Enquiry

Sampling Units Customer/Dealers/ Retailers

Sample Size Customer (100)/Dealers

Sampling Method Random Sampling Method

Sample drawn from Nagpur

TYPE

The data collection was done through

1. Secondary Data Analysis

2. Survey.

Secondary data is obtained by contacting the retailer and dealers.

SCALING TECHNIQUES

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We asked the customers to rank the various attributes on a scale of very important, Important and

not very important. To find-out the brand perception of various brands, paired comparison

between them is used.

QUESTIONNAIRE

Questionnaire design was the critical issue as the questionnaire reflects the survey purpose .The

questionnaire was meticulously prepared by identifying the various variables. The same scale of

yes/no and very important, important and not so important was used throughout so as to make the

respondent comfortable. Firstly a questionnaire was prepared and few people were surveyed.

After this survey we realized the flaws in the questionnaire and then a modified questionnaire

was prepared and people were surveyed on this modified questionnaire.

DATA COLLECTION

Data collection is the important step after the sample is selected on which the survey is being

conducted. With data that is available in the hard form we converted that to electronic form, to

analyze the data using the MS Excel softwares. In the data collection customers were

approached during the working hours at dealers point.

SOURCES OF DATA

Primary and secondary published data:

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Primary and secondary data are said to be primary when they are published or released by the

same organization that collected them: they are secondary when they are published or released by

another organization.

Published data can be obtained from following sources:

Trade associations: Many industries in India are organized into trade associations. One

important function of such association is to collect data concerning the industry from the

members o summaries them for the industry, and to disseminate them exclusively among the

members.

Trade and functional journals: Frequently there are several periodicals devoted to news of

importance to a given industry or profession. These may be issued by publishing house or by an

important firm in the industry.

Daily newspapers: From important national newspapers, day-to-day information may be

obtained. These daily newspapers also publish a number of research articles of economic and

commercial importance.

Research organizations: several research organizations publish, as part of their service, a wide

variety of numerical data.

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CHAPTER-3

COMPANY OVERVIEW

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Videocon is one of the leading player in the consumer durable and appliances. It has been truly

an Indian multinational. Since its existence it has enjoyed a top position among the Indian

consumer. But after globalization and when other player in the consumer durable and appliances

sector came into the market, it faced a huge threat from these big names. It eventually lost it

leadership in the market. After losing its top position Videocon continued to work towards

innovation and to gain back it share in the market. It still continued to be one of the best selling

brands.

It has been a market leader in CTV technology. It did some strategic alliance and acquisition. In

spite of having a strong presence in the Indian market, Videocon was looking to connect itself

with the younger audience. At the same time it was looking to get into the other venture of Direct

to home (DTH) and mobile handset. Videocon opted for rebranding itself and its practices to get

hold of the Indian Market and establish itself as a global player among both the urban and rural

market. At the same time through rebranding Videocon wants to bank upon to capture great pie

in to its new venture of DTH and handset business. Rebranding is providing Videocon the

competitive edge to establish itself as the V is me

The Videocon group has an annual turnover ofUS$ 4.1 billion, making it one of the

largest consumer electronic and home appliance companies in India. Since 1998, it has expanded

its operations globally, especially in the Middle East.

Today the group operates through 6 key sectors:

1. Consumer durable.

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2. Thomson CPT.

3. CRT glass.

4. Oil and gas.

5. DTH.

6. Telecommunication.

CONSUMER DURABLES

Videocon enjoy a pre-eminent position in terms of sales and customer satisfaction in many of our

consumer products like Color Televisions, Washing Machines, Air Conditioners, Refrigerators,

Microwave ovens and many other home appliances, selling them through a Multi-Brand strategy

with the largest sales and service network in India.

a. COLOUR TELEVISION: CTV is the foremost product in the consumer electronics

segment. CTV segment has witnessed evolution of LCDs, Flat, Slim & Ultra Slim TVs

over conventional CTV. Plasma TVs have found their place in corporate offices, shopping

malls, airports, railways, etc. where there is public viewing.

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(FIGURE 1)

b. WASHING MACHINE: Washing machine contributed 25% growth to overall home

appliance. Top loading category is getting more popular than conventional front loading.

(FIGURE 2

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c. AIR CONDITIONER: AC market has topped the chart with a phenomenal growth of

59%. Customers prefer for Split AC as it requires less space, low noise level & glossy

appearance.

(FIGURE3)

d. REFRIGERATORS: Videocon Industries Ltd. Refrigerators are put up for sale in the

market under various brand names such as Electrolux, Kelvinator, and Kenstar. Demand for

frost free segment is on a higher side. Electrolux and Kenstar looks after frost free segment.

(FIGURE 4)

DISPLAY INDUSTRY

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With the Thomson acquisition Videocon has emerged as one of the largest Colour Picture tube

manufacturers in the world operating in Italy, Poland and China, continuing to lead through new

innovative technologies like slim CPT, extra slim CPT and High Definition 16:9 formats CPT.

COLOUR PICTURE TUBE GLASS

Videocon is one of the largest CPT Glass manufacturers in the world with a high level of

experience and technical expertise operating through Poland and India. Videocon will leverage

on this synergy after the Thomson acquisition to internally source glass for its CPT

manufacturing increasing efficiencies and lowering costs.

OIL AND GLASS

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.

DTH

In 2009, Videocon launched its DTH product, called 'd2h'. As a pioneering offer in

the IndianDTH market, Videocon offered LCD & TVs with built-in DTHsatellite receiver with

sizes 19" to 32". This concept in the DTH service is relatively new in the presence of other

players like ZEE TVs Dishtv, Tata Sky, Air tel Digital TV and Reliance's BIG TV providing

only the set top box. The firm also has satellite telephony as also satellite-based internet access,

which incorporates the most advanced IP technologies for real-time audio, video and data.

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TELECOMMUNICATION

Videocon Telecommunication Ltd has license for mobile service operations across India. It launched its

services on 7 March 2010 in Mumbai.

PRODUCTS OF VIDEOCON

CONSUMER ELECTRONICS

REFRIGERATOR

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WASHING MACHINES

AIR CONDITIONER

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DVD PLAYERS

DTH

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MOBILE PHONES

MICRO OVENS

ORGANISATION STRUCTURE

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MARKETING DEPARTMENT

(FIGURE 5)

FUNCTIONS:

a. The smooth functioning of the marketing, sales and delivery operation.

b. Corrective actions on customer complaints.

c. New initiatives taken for sales maximization of the company.

d. Handling relationship with personal, communicating and reporting to the management.

e. Developing sales programs and formulating and designing sales polices.

Distribution Network

A strong distribution network is absolutely essential to compete in this industry. Not only does it

guarantee a country wide reach for a companys products but is also necessary for providing

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good after sales service. Videocon has implemented ERP system, which helps in integrating the

manufacturing, marketing, procurement and distribution services with the corporate office.

HUMAN RESOURCES DEPARTMENT

Organizational Structure

(FIGURE 6)

FINANCE DEPARTMENT

(FIGURE 7)

FUNCTIONS:a. To comply with legal and other requirement.

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b. To provide information for stakeholders about financial performance and viability.

c. To provide managers with information for decision-making.

d. To provide a structure to business activity based on the careful processing of numerical

data.

SWOT ANALYSIS

Strengths:

a. Proven high-volume Manufacturing capacity.

b. Extensive Distribution Network.

c. Compelling product portfolio with strong brand recognition. Customers are aware about

Videocons products.

d. Company has good brand name.

e. Strong backward integration

f. Videocon has largest distribution manufacturing based across in India.

g. Large brand basket

h. Multi brand strategy

i. 3rd largest picture tube manufacture in India

j. Cheap price.

k. Globally acceptance.

Weakness:

a. Less investment on advertisement of Videocon CTV.

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b. Fewer margins to the distributor/dealer.

c. Weak promotional strategy of CTV.

d. No proper approach of target customer.

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

f. CRT technology is losing popularity.

g. Less focus on unconventional channel.

h. Not providing good service.

Opportunities:

a. Expansion to new business areas and new market regions.

b. Videocon takes over the Electrolux.

c. Videocon bought Thomson color picture tube manufacturing plant.

d. Videocon international is going global.

e. Videocon exploring whole new segment.

f. In summer the climate of Nagpur becomes hotter day by day and coolers do not fully satisfy

the customers requirement. This provides a great Opportunity for AC manufacturers.

g. Growing semi urban market.

h. Industry is in increasing phase.

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

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

k. Purchasing power of people is increasing day by day.

l. Focused on unconventional channels.

Threats:

a. Increased competition from Korean Vendor.

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b. Increase of imports from China. Brand loyalty is more of LG &other company.

c. Market condition like slumps in market.

d. A new competitor in your home market.

e. Competitor has a new innovative substitute product or service.

f. Increased trade barrier.

g. Brand reputation is not good.

h. Competition in global CPT market especially from integrated players such as LG Phillips,

Samsung, and Matsushita is intense.

VISION AND MISSION

Videocons mission: a reflection of continuity and change.

Videocons mission expression has been crafted to envelope both extant and emerging realities.

To delight and deliver beyond expectation through ingenious strategy, intrepid

entrepreneurship, improved technology, innovative products, insightful marketing and inspired

thinking about the future.

A breakdown of the statement above reveals a means and end approach, where the end

is articulated at the beginning with the means linked to it.

To delight and deliver beyond expectation

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This segment not only underlines the importance of the ultimate goal customer satisfaction

(delight) and ultimate target - the customer, but also of intermediate processes and principals,

which have contributed to building a robust, dependable Videocon value chain (deliver). As a

result of its focus on developing loyal customers and reliable associates, Videocon is able to

exceed expectations.

Improved technology

Technology is no more premium input; it has become the bare minimum in recent years. Rapid

advances have only fuelled this phenomenon. Videocon is extremely vigilant in shunting out

dated technology and replacing it with the best-in-class offers of the times.

innovative products

Product development, innovation and customization are the tools Videocon uses to stay ahead of

the competition. This is because a continuous stream of innovative products excites the market

and enhances brand recall. A strategy that Videocon banks on a lot, especially on the domestic

front.

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insightful marketing

The market share battle scene has long shifted from technology and processes to attract the

customer. This means that those with deeper insights into the elusive mind of the buyer are likely

to dominate. Videocon is reinforcing marketing strengths to read better the pulse of the market

and help create products that map perfectly into customer preferences

inspired thinking about the future.

The future is unpredictable, but not doing anything about it is fraught with grave risk. Videocon

extrapolates future trends on the basis of current changes in technology and preferences as well

as sheer gut feel. Fine-tuned business instincts are worth their weight in gold, lots of it. The

company has perfected its practice almost into an art form with some calculated gambles like oil

and gas proving to be absolute money-spinners.

through ingenious strategy

In the cutthroat world of today, it is only by taking recourse to advance planning and strategy that

a business can hope to survive. Thus, there is a need for a bounded rationality, spontaneity and

improvisation that is flexible enough for scenarios both imaginable and unimaginable.

Videocons ingenious man oeuvres are actually flexi-strategy that abstracts from shifting ground

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conditions and decides game-plans, or sometimes changes the rules of the game.

INDUSTRY OVERVIEW

ABOUT CONSUMER ELECTRONICS INDUSTRY

1. History of consumer Electronics in India

The Electronics Industry in India took off around 1965 with an orientation towards space and

defense technologies. This was rigidly controlled and initiated by the government. This was

followed by developments in consumer electronics mainly with transistor radios, Black & White

TV, Calculators and other audio products. Colour Televisions soon followed. In 1982 -a

significant year in the history of television in India the government allowed thousand of Colour

TV sets to be imported into the country to coincide with the broadcast of Asian Games in New

Delhi. 1985 saw the advent of Computers and Telephone Exchanges, which were succeeded by

Digital Exchanges in 1988. The period between 1984 and 1990 was the golden period for

electronics during while the industry witnessed continuous and rapid growth.

From 1991 onwards, there was first an economic crises triggered by the Gulf War, which was

followed by political and economic uncertainties within the country. Pressure on the electronics

industry remained though growth and developments have continued with digitalization in all

sectors and more recently the trend towards convergence of technologies.

In recent years the electronic industry is growing at a brisk pace. It is currently worth $ 50

Billion but according to estimates, has the potential to reach $ 90 billion by 2012. The largest

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segment is the consumer electronics segment. While is largest export segment is the consumer

electronics segment. While is largest export segment is of components.

The breakup of production in various segments the industry is shown

below:

a. 1950s Radios -imported & sold.

b. Late 1960s B&W TV Transmission started.

c. 1970s Manufacturing of B/W TV started.

d. 1982 Colour TV Transmission, Manufacturing of CTV started.

e. 1992 Economic Liberalization Process initiated.

f. 1993-94 Dismantling of controls such as licenses, Ban on use of Foreign Brand Names etc.

g. 1994-95 Entry of MNCs Panasonic, Sony, LG, Samsung etc. Lowering of Import duties,

Cable TV Started.

h. 1995 Till Date Entry of Many MNCs & Rapid Growth, Continuous Lowering of Import

Duties.

i. 2001 Non tariff Barriers on Imports removed.

j. 2004 Free Trade Agreement (FTA) with Thailand implemented, resulting in reduction of

import duties to 0% on Colour Television sets, Colour Picture Tubes, Refrigerators and Air

Conditioners, thus more competition.

k. 2005. Entry of organized retail.

l. 2007 FTAs with other countries & FDI in retail likely.

m. 2009 DTH Services Started.

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n. 2010 Mobile phones launched.

CURRENT SCENARIO

The consumer durables market in India is valued at US $ 4.5 billion currently. The microwave

ovens and air conditioners registered a growth of about 25%. Frost-free refrigerators have

registered significant growth as many urban families are replacing their old refrigerators. .

Washing machines, which have always seen poor growth, have seen reasonable growth. More

and more Indians are now buying electrical appliances due to change in electricity scenario. The

penetration level of color televisions (CTVs) is expected to increase 3 times by 2012. On the

brick of rapid economic growth, India has witnessed the dynamic change incountry's consumer

electronics industry. In last few years the industry has been witnessing significant changes in

retail boom, growing disposable income andavailability of easy finance schemes. One electronic

gadget that has brought newrevolution in Indian Electronic Industry is Television Set. Today,

India is fastemerging as the key driver in the global television market both as a manufacturer

andconsumer. In recent years, the market for televisions in India has changed rapidlyfrom the

conventional CRT technology to Flat Panel Display Televisions (FPTV). Currently, the split

between CRT and FPTV is around 97% and 3% respectively. Inaddition to this, one of the most

striking changes sweeping across the colourtelevision market in Indian market is the exponential

growth of the flat paneltelevision (FPTV) market, in common parlance called the liquid crystal

display(LCD) and plasma televisions.

COMPETITOR ANALYSIS

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A detailed analysis of some major players is done below:

LG ELECTRONICS

Established in 1997, LG Electronics India Pvt. Ltd., is a wholly owned subsidiary of LG

Electronics, South Korea. In India for a decade now, LG is the market leader in consumer

durables and recognized as a leading technology innovator in the information technology and

mobile communications business. LG is the acknowledged trendsetter for the consumer durable

industry in India with the fastest ever nationwide reach, latest global technology and product

innovation.

Today the group deals with 4 sectors; they are Mobile communication, digital appliances, digital

displays, and digital media.

Mobile Communications

LG is a global leader in mobile communications, specializing in UMTS, CDMA,

and GSM handsets. Thanks to its wide range of wired and wireless options, the company is

becoming a force to be reckoned with on the international market.

In India LG is targeting GSM handset business in premium trend setter segment, Camera &

music segment & color screen segment.

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Digital Appliances

Digital Display

LG offers a wide range of digital display products, equipped with customer-oriented

designs and technologies. With its LCD TVs, Full HD Plasma TVs, Ultra-slim Color TVs, LCD monitors

LG is pulling out all the stops to remain the frontrunner in today's digital display industry.

LG Electronics rightly understood the consumer motivations to create magnetic products, price

them strategically, position them sharply and keep making the magnetism more potent. Having

understood the finer differences in consumer motivations, it opted for sharp- arrow reasons-to-

buy differentiation over the blanket-all approach taken by most of the other players. It is an

aggressive marketer. It focuses on low and medium price products.

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LG changing homes in many ways, offering customers exceptional value

and convenience. Innovative digital appliances from 100% washer dryer

with direct drive technology, built-in LCD TV refrigerator, Light wave

cooking oven (solardom) to art cool split air conditioner illustrate LG's

commitment to digital convergence.


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Business Divisions and Main Products

Home Entertainment

LCD TVs, Plasma TVs, Audio, Video, Optical Storage.

Mobile Communications

Mobile handset (CDMA/GSM/3G), Mobile Accessory

Home Appliance

Washing Machines, Refrigerators, Cooking Appliances, Vacuum Cleaners, Built-in Appliances.

Air Conditioning

Residential Air Conditioners, Commercial Air Conditioners, Home Solution, Compressors.

Business Solutions

Monitors, Commercial Displays, Car Infotainment, Security Business

SAMSUNG

Initially the strategy of Samsung in India was to create premium image by emphasizing global

brand. After facing stiff competition from another Korean major- LG, Samsung also started

playing price game. In 2004 it reverted back to its premium positioning, although it resulted in

some loss of market share. In line with the Global Digital Initiative of the Parent Company,

Samsung India is seeking to acquire digital leadership in India by introducing its digital ready

televisions like the 40" LCD Projection TV, 43" Projection TV and the Plano series of Flat

Colour televisions.

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Vision 2020

As stated in its new motto, Samsung Electronics' vision for the new decade is, "Inspire the

World, Create the Future."

This new vision reflects Samsung Electronics commitment to inspiring its communities by

leveraging Samsung's three key strengths: New Technology, Innovative Products, and

Creative Solutions. -- And to promoting new value for Samsung's core networks -- Industry,

Partners, and Employees. Through these efforts, Samsung hopes to contribute to a better world

and a richer experience for all.

As part of this vision, Samsung has mapped out a specific plan of reaching $400 billion in

revenue and becoming one of the worlds top five brands by 2020. To this end, Samsung has also

established three strategic approaches in its management: Creativity, Partnership, and

Talent.

Samsung is excited about the future. As we build on our previous accomplishments, we look

forward to exploring new territories, including health, medicine, and biotechnology. Samsung is

committed to being a creative leader in new markets and becoming a truly No. 1 business going

forward.

The Samsung Group is composed of numerous international affiliated businesses, most of them

united under the Samsung brand including Samsung Electronics, the world's largest

electronics company.Samsung Heavy Industries, the world's second largest

shipbuilder. and Samsung C&T, a major global construction company.

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Samsung has been the world's most popular consumer electronics brand since 2005 and is the

best known South Korean brand in the world. Samsung Group accounts for more than 20% of

South Korea's total exports and is the leader in many domestic industries, such as

the financial,chemical, retail and entertainment industries.

LITERATURE OVERVIEW

Values & Philosophy

Shri Nandlal Madhavlal Dhoot, the founder of the Videocon Group, completed his education in

Ahmednagar and Pune. He was a successful sugarcane and cotton cultivator. As a next logical

step to vertical integration, he boldly took upon an entrepreneurial venture by importing

machinery from Europe to set up the Gangapur Sakhar Karkhana (Sugar Mill) in 1955. Those

were the times when the village did not even have electricity. Thus was unleashed an Industrial

revolution.

The die was cast. Over the years, Nandlalji's path-breaking attitude found expression in a myriad

ways, earning him the well-deserved reputation of the pioneer of industrial activity in

Marathwada India. In early 80's Nandlalji initiated his three sons - Venugopal, Rajkumar and

Pradeep into business. Through a technical tie up with Toshiba Corporation of Japan, he

launched India's first world-class color Television: Videocon. Today, Videocon is household

name across the nation- India's No. 1 brand of Consumer Electronics & Home Appliances,

trusted by over 50 million people to improve their quality of life.

39
http://en.wikipedia.org/wiki/Exportshttp://en.wikipedia.org/wiki/Exportshttp://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Chemical_substancehttp://en.wikipedia.org/wiki/Retailinghttp://en.wikipedia.org/wiki/Entertainmenthttp://en.wikipedia.org/wiki/Exportshttp://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Chemical_substancehttp://en.wikipedia.org/wiki/Retailinghttp://en.wikipedia.org/wiki/Entertainment


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Videocon: Green change in the logo

Videocon is aiming at global expansion. It has taken a bog leap towards the green movement by

changing its logo. It now has more of green. The color palette of the logo is communicating the

ecological drive. Videocon is establishing itself now as younger, fresher, ecofriendly brand.

Green advertising is playing an important role in spreading the ideas of protecting the

environment. It designed brilliantly which can motivate the consumer to consciously work

towards protecting the environment. The ads must show the benefits that the consumer should

drive from the product. Videocon needs to consider the 4ps of people, planet, profit and process

and work towards the well being of the customers, employee, and nature.

Source: Magazine: Advertising express, February 2010, page number: 44, 48

MANAGEMENT

K. R. KIM

Vice Chairman and CEO

Videocon Industries Limited

K R Kim was appointed as Vice Chairman and CEO, Videocon Industries Limited in 2008. Since

then, he has led the company to expand its operations throughout the country in the Domestic

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and Global operations of the consumer durables and infotainment division. A veteran in the

consumer goods industries and the former MD of LG electronics, K.R Kim, a Law graduate from

Seoul National University has been associated for over 30 years with LG Electronics before

joining Videocon. During his tenure he served at esteemed positions of President and that of a

Managing Director.

K.R Kims proficient leadership skills, task driven approach and matchless degree of excellence

and discipline has conspicuously carved his identity worldwide. Moreover, he has been the proud

recipient of the Super Achiever award from CETMA (Consumer Electronics and TV

Manufacturers Association) for his role in advancing maturity of Indias Electronics and Durable

goods market. He has also been awarded for Excellence in Corporate Leadership and

Entrepreneurial Spirit established by CNBC TV 18- by our Honorable Prime Minister

Mr. Manmohan Singh.

MILESTONE OF VIDEOCON

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43

WEEK TASK ASSIGNED ACHIEVEMENT Reasons for Variance

1st

Week

03/05/10

To

10/05/10

To know about the

company & to collect

the information about

the company.

Company guide has given me

detail information about the

company.

Performance was

neutral.

2nd

Week

10/05/10

To

17/05/10

Market Research(to

know the depth of

product)

Company guide gave me

training about the different

products of the company, which

is related to fieldwork. And

also I have prepared questionerunder the guidance of company

guide.

Performance was

neutral.

3rd

17/05/10

To

24/05/10

From 3rd week I

started my field work,

In my 3rd week I visited 120

dealers and collected

information, regarding how

many of them deal with

Videocon products.

I started my field work

from 3rd week, In

starting I got some bad

response from some

place.

4th

24/05/10

To

31/05/10

Collection of data

from dealers was

repeated.

In the 4th week I have started

my work for two days and

collected rest of details.

In 4th week I got some

good response.

5th

01/06/10

To

07/06/10

The next task was to

know about Customer

During 5th week I participated

in an Exhibition, which gave

me an experience to know

about the customer.

I dont have any

authorization letter from

the company thats why

people are not ready to

provide the information.

6th

08/06/10

To

15/06/10

Collection of data

from customer has to

be analyzed and I

have to prepare

questionnaire

In the 6th week I worked for

whole week and analyzed the

collected data.

My performance was

good.


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CHAPTER 4

DATA ANALYSIS

The data of score of features and score of brand perception was fed into the excel sheet. Separate

Excel sheets were employed for analysis of each brand and also to keep it concise and

unambiguous.

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Pie chart:

This is very useful diagram to represent data, which are divided into a number of categories. This

diagram consists of a circle of divided into a number of sectors, which are proportional to the

values they represent. The total value is represented by the full create. The diagram bar chart can

make comparison among the various components or between a part and a whole of data.

Bar chart:

This is another way of representing data graphically. As the name implies, it consist of a number

of whispered bar, which originate from a common base line and are equal widths. The lengths of

the bards are proportional to the value they represent

Limitation of Survey

Response Errors - These may arise when the respondents give inaccurate or incomplete

answers. For e.g. in our survey a respondent may not mention that he had test driven a car before

purchasing it A major problem faced in the survey involved the comparative ratings of various

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attributes for all the brands of cars. Many of the respondents were not very willing to rank so

many factors as they perceived it to be time consuming.

Open Ended Questions All the questions in the questionnaire were open-ended to avoid any

kind of bias from the respondents end. But a drawback of this approach is that there was an

incomplete capture of his responses, as the respondent could not always come out with the

purchase steps and the time taken in them. The reasons for such inaccuracy could be because of

unfamiliarity, fatigue, boredom, faulty recall and the Question format.

Random Sampling Errors This can occur, as the particular sample selected is an imperfect

representation of the population of interest. The area covered in the survey was Nagpur region

and the customer preferences and tastes in different.

Learning Experience

a) During the project training in the market, I understand how it works practically from start

point to end point. Before that I have only theoretically idea of marketing management.

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b) It is great experience to see these entire things happen in front of eyes. It enhances my

practical knowledge from one level to another level.

c) I have also learnt how corporate world functions and the importance of discipline in your

work life.

d) My company guide supported me in gaining sufficient knowledge about the company and

industry this help me complete the project successfully.

e) I have learned about the competitors of Videocon.

f) I became much more confidant and the experience has helped me to brush my

communication skills.

g) I have learnt that to convince someone what is required is complete knowledge of your

product and how will it benefit the client.

h) The training was informative & educative. It was a practically exposure to me.

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i) Apart from this entire thing it gives me real picture about supply chain. I visited each

department & it is good learn experience to me when employees share their experience

for the organization to achieve the goal.

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DATA COLLECTED FROM DEALERS & ANALYZED

Brand Dealing with

Leader:

Samsung

Challenger: L.G

Follower:

Videocon

Brands on Display

Leader: Videocon

Challenger: L.G

Follower: Samsung

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PRODUCT WHICH THEY DISPLAY

GLOW SIGNS

ON SHOP

(OUTSIDE)

RATING BY TRADE

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DATA COLLECTED FROM CUSTOMERS & ANALYZED

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1. Awareness of Product

A) Yes B) No

Interpretation- On the basis of above available data, we can analysis that 93% of customers

are aware of product.

2. How you choose your brand?

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Interpretation- On the basis of above available data, we can analysis that most of

customers choose their brand by watching advertisement.

3. Where you purchase your brand?

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Interpretation- On the basis of above available data, we can analysis that most of customers

purchase products from show room.

4. Parameter which influence?

Interpretation- On the basis of above available data, we can analysis that most of customers

are influenced by price.

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CHAPTER 5

FINDINGS, RECOMMENDATIONS & CONCLUSION

Dealer survey Findings:

a) By calculating the display share we found that in most of store VIDEOCON has 60%

display share almost in all categories.

b) By the actual monthly sale of particular store we came to know the capacity of the store

and how much product can they sale.

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

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

VIDEOCON.

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

service.

e) Many dealers were facing the problem of after sale service because there is no follow up

calls from VIDEOCON.

f) Demo calls also not done properly. Sales promotion scheme are sufficient.

g) Dealer is not satisfied with the incentive provided by the company.

h) The top competitor of VIDEOCON product in Nagpur is LG and SAMSUNG.

i) In Nagpur area the performance of VIDEOCON is in better position but the competitor

also hold closer margin.

j) There is high growth of sale in market due to booming in new technology and better

service.

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RECOMMENDATIONS AND SUGGESTIONS

a) More detailed customaries service is to be provided.

b) VIDEOCON should try new dealer who have the potential. So they can target more market.

c) As there is a bottleneck competition between Samsung and VIDEOCON, it is necessary to

take measure steps to overcome the area of downfall in VIDEOCON with respect to

Samsung.

d) The marketing managers should make better relations with dealers and reputation of the

company.

e) Customer considers quality as their first preference, so the company should give more stress

on this.

f) The switching of customer from VIDEOCON product to other brand is due to the bed after

sell service in shop.

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CUSTOMER SURVEY FINDINGS

a) Secondary supports play an important role in the customers mind and create awareness

among the customers. The secondary support includes Demonstration, Exhibition & Even

Sponsors.

b) From the survey it was found out that the majority of customers dont buy consumer durables

from exhibitions. They just visit the exhibitions to see the company latest model.

c) They want to buy from the showrooms or from co. showrooms. For them service is

important. Beside convenience and other factors service is key factor.

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

e) Customers are also now very choosy in buying the product and it is important for the

company to make loyal customer of their brand.

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

g) Customers are also now very choosy in buying the product and it is important for the

company to make loyal customer of their brand.

h) Spending on advertisement and publicity of less as compare to the competitors. There is

need to increase advertisement. Consumer prefers electronic media for advertisement and

retailer also prefer TV advertisement.

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RECOMMENDATIONS AND SUGGESTIONS

a) Exhibitions do not help to generate so much sells but they should be conducted regularly.

This helps in generating awareness regarding the product in customers, which ultimately

helps in sales.

b) Display share should be increased where there is less than 50% as VIDEOCON also

believes that JO DIKHTA HAI WO BIKTA HAI.

c) Company should try to improve service. No doubt the company products have technically

edge over competitors but in long run it may hamper the companys profit.

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CONCLUSION

Nagpur market is a new market for these techno-survey Videocon products. Customers need to

be made aware of the productive usages of these products if Videocon want to target these

untapped market segments of customers and rural customers. Also Videocon need to modify

their advertising strategies in order to promote these products and services.

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QUESTIONNAIRE

Bibliography

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QUESTIONNAIRE FOR DEALER

1. Do you sell Videocon consumer appliances (Yes/ No)

2. Do you sell other brands (Yes/ No)

3. What are the brands that you deal

Videocon

Sansui

Samsung

Whirlpool

L.G

Others

4. What are the brands that you put on display?

Videocon

Sansui

Samsung

Whirlpool

L.G

5. What are the products which you put on display?

LCD

Refrigerators

Washing machine

Air Conditioner

DTH

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6. Which products glow sign (outside) you display?

Videocon

Sansui

Samsung

Whirlpool

L.G

7. What are ratings by trade?

Service

Logistics

Customer Preference

Stock Availability

New product launch

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Questionnaire to Consumer

1. Which of the companys products would you prefer to own?

a) Videocon b) LG c) Samsung d) ONIDA e) Samsung

f) Others (please specify)

2. Are you aware of Videocon (YES/NO)

3. What were the factors that persuaded you to come to your chosen brand?

a) Company advertisements: b) Talk to friends and colleagues c) Dealers efforts

d) Any other; please specify

4. From where you prefer buying consumer durables?

a) Showroom b) on-line c) exhibitions

5. While purchasing consumer durable which parameter influences you?

(Please rate the following sources of information)

Price

Brand Image

Product feature

Service

Durability

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BIBLIOGRAPHY

Books-

Philip Kotler, Marketing Management, 13th Ed, Princeton Hall India 2009.

Market Research Made Easy (Self-Counsel Business)by Don Doman.

Marketing Research: An Applied Approach - European by Naresh K. Malhotra.

Search Engines

Videocon OFFICIAL SITE.. www. videconworld.com

www.google.com
http://www.amazon.com/Market-Research-Made-Self-Counsel-Business/dp/1551806762/ref=cm_lmf_tit_2/175-9005902-9897213http://www.amazon.com/Marketing-Research-Applied-Approach-European/dp/0273695304/ref=cm_lmf_tit_6/175-9005902-9897213http://www.amazon.com/Marketing-Research-Applied-Approach-European/dp/0273695304/ref=cm_lmf_tit_6/175-9005902-9897213http://www.google.com/http://www.amazon.com/Market-Research-Made-Self-Counsel-Business/dp/1551806762/ref=cm_lmf_tit_2/175-9005902-9897213http://www.amazon.com/Marketing-Research-Applied-Approach-European/dp/0273695304/ref=cm_lmf_tit_6/175-9005902-9897213http://www.google.com/

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