MARKETING ANALYSIS

ON

Submitted in partial fulfilment of the requirement for the award of

Bachelors of Business Administrative

(BBA)

Made By: Under Guidance of:

Gaurav Chauhan

BharatiVidhyapeethUniversity

School of Distance Education

Academic Study Centre- BVIMR, New Delhi

 ACKNOWLEGEMENT

Project work is never the work of an individual. It is more a combination of ideas, suggestions, and
contribution and work involving many jobs. One of the most important parts of writing a report is
the opportunity to thank all those who have contributed to it. The list of expression of thanks, no
matter how extensive, is always incomplete and inadequate. This acknowledgement is no exception.

I want to express my sincere gratitude towards who provided me with her expert guidance and
invaluable suggestion.

I would like to thank my classmates and all those who directly or indirectly helped me in one or the
other way in the successful completion of the project.
 TABLE OF CONTENT

CHAPTER 1: INTRODUCTION OF COMPANY:-

1. Nature of business.

2. Types & ownership pattern.

3. Organization structure.

4. Production structure.

5. Organizational strategies.

CHAPTER 2: INDUSTRIAL ANALYSIS:-

1. Industry overview :- (Growth rate of industry, contribution to GDP).

2. Current Issues :- (From newspaper, Journals-for company and industry).

3. Key competitors.

4. Environment scanning:-political environment, economic environment, socio-

cultural environment, technological environment, environmental issues (Green
environment) and legal environment.

5. Porters five forces model of competition-Michael Porter.

CHAPTER 3: MARKETING STRATEGIES:-

1. Products of company.

2. 4Ps (Product, Price, Place & Promotion).

3. STP (Segmentation, Targeting and Positioning).

4. Distribution channels.

5. Promotion strategies.
CHAPTER 4: KEY LEARNINGS FROM THE COMPANY AND RECOMMENDATIONS:-

1. Performance Analysis of the Company.

2. Market share/growth rate of company.

3. SWOT Analysis of the Company.

CHAPTER 5: RESEARCH METHODOLOGY

1. Objective of the study.

2. Research Methodology

3. Questionnaire Methodology

CHAPTER 6: Findings

CHAPTER 7: Conclusions and Suggestions

Bibliography
 CHAPTER 1: INTRODUCTION OF COMPANY:-

INTRODUCTION

Videocon Industries Ltd. was one of the initials companies that made it to the World. Videocon
Electricals captured the initial Indian Electrical market and topped the charts for its products such as
Refrigerators, television etc. before other players such as Samsung, Whirlpool etc .entered Indian
market. Videocon was one of the first Electronic Company to Collaborate with Japanese Toshiba
Ltd as early as 1985.

It is one of the biggest Indian Electrical brands not only in India but also globally. Indeed, Videocon
is one of the fastest paced Electrical Products worldwide. Videocon thus posed an exciting
opportunity to study a brand that is automatically associated with youth and technology.

Videocon deems it a privilege that it is in a position to prolong instances of joy and spirit. And
lend much needed variety and flair in everyone's life.
An Indian multinational, a global force in display technologies and a group on the threshold of
even bigger things. There are new horizons to breach, new frontiers to conquer and simply no
pause buttons on the Videocon play. Expect the unexpected, the uncharted and the unlimited.

1.1 NATURE OF BUSINESS

Manufacturer & Exporter of Conventional Colour TV and LCD TV Receiver Sets, D2h Set Top
Box, VCD/MP3 Players, Air Coolers, Music Systems, Airconditioners, Home Theaters like
Refrigerators, Automatic & Semi Automatic Washing Machines, Dish Washers, Microwave Ovens,
Mixer, Grinders and Water Purifier like TV, DVD/MP3 & Audio Components, Glass Shells for
Colour Picture Tubes, Populated PCBs, Tunners, Monitors for Computer, Compressors and other
Electronic Assemblies and Sub-Assemblies like Digital Diaries, Kiddy PC, Data Projector, Power
Inverter, Digital MP3 Player and Palm Top like ISP, Content and Web Solutions.Crude Oil
Extraction 50000 Barrels per Day.
1050MW Power Generation. Videocon LCD TV, Videocon Air Conditioners, Videocon
Refrigerators, Videocon Washing Machine.

1.2 Type and Ownership Pattern

Figure1.1: Consumer Electronics, Home Appliances & Compressor manufacturing in India

Videocon enjoys 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. Refrigerator manufacturing is further supported
by our in-house compressor manufacturing technology in Bangalore. Videocon has the largest
distributed manufacturing base across India 12 facilities. It has the Capacity to manufacture 4
million CTVs, 2.5 lacs washing machines, 1 mn. DVD players, 4.8 mn refrigerators.

Display industry audit components

With the Thomson acquisition Videocon has emerged as one of the largest Color Picture tube
manufacturers in the world operating in Mexico, Italy, Poland and China, continuing to lead through
new innovative technologies like slim CPT, extra slim CPT and High Definition 16:9 format
CPT.

Color Picture Tube Glass

Videocon is one of the largest CPT Glass manufacturers in the world with a high level of experience
and technical expertise operating through Poland and India. Videocon will leverage on this synergy
after the Thomson acquisition to internally source glass for its CPT manufacturing increasing
efficiencies and lowering costs.

Oil and Gas

An important asset for the group is its Ravva oil field with one of the lowest operating costs in the
world producing 50,000 barrels of oil per day. The group has ambitious plans for expansion in this
sector globally.

Logo Logic
This is the new Videocon symbol. It reiterates the ethos of a company dedicated to maintaining the
highest international standards of excellence through quality, technology and innovation. For over a
decade now, Videocon has been bringing the latest and very best in Consumer Electronics and
Home Appliances. Successfully adapting the best of internationaltechnology to suit Indian needs,
and crafting it to improve the quality of life as million of satisfied customers will agree.

Figure1.2: Logo of Videocon

The new symbol of Videocon asserts its passion for global impact, and the two Es on either side
represent the Groups wide spectrum of interests ranging from Electronics to Energy. Along with
the steely glint, this communicates the group's global ambition, its strength, sterling credentials and
innovative drive. A symbol that proclaims a paradigm shift.A sign that represents the new force that
is Videocon.Thus recapitulating our principle of reaching out and touching the lives of millions of
people Worldwide.

OWNERSHIP PATTERN
 Table 1.1: Ownership Pattern

Sr. Number of Total number Number of shares held As a % As a % of

Category of shareholder
No shareholders of shares in de materialized form of (A+B) (A+B+C)

(A)
Shareholding of Promoter and Promoter Group

(1) Indian

(a) Individuals/ Hindu Undivided Family 13 1619838 1292950 0.87 0.73

(b) Bodies Corporate 44 153823583 152711452 82.6 69.57

Sub-Total 57 155443421 154004402 83.47 70.3

(A)(1)

(2) Foreign

(a) Individuals (Non- Resident 0 0 0 0 0

Individuals/ Foreign Individuals)

(b) Bodies Corporate 0 0 0 0 0

(c) Institutions 0 0 0 0 0

(d) Any Other (specify) 0 0 0 0 0

Sub-Total 0 0 0 0 0
(A)(2)

Total Shareholding of Promoter and 57 155443421 154004402 83.47 70.3

Promoter Group (A)=
(A)(1)+(A)(2)

(B) Public shareholding

(1) Institutions

(a) Mutual Funds / UTI 21 36571 35228 0.02 0.02

(b) Financial Institutions/ Banks 36 304403 291166 0.16 0.14

(c) Insurance Companies 5 5600352 5599752 3.01 2.53

(d) Foreign Institutional Investors 95 13467563 12706367 7.23 6.09

Sub-Total 157 19408889 18632513 10.42 8.78
(B)(1)
(2) Non-institutions
(a) Bodies Corporate 1927 5516620 4962476 2.96 2.5
(b) Individuals
(i) Individual Shareholders holding 342862 4685290 2998613 2.52 2.12
nominal share capital up to Rs. 1 lakh
 (ii) Individual Shareholders holding 19 1171618 1171618 0.63 0.53
nominal share capital in excess of Rs.
1 lakh

(c) Any Other (specify) 0 0 0 0 0

Sub-Total(B)(2) 344808 11373528 9132707 6.11 5.15

Total Public Shareholding (B)= (B) 344965 30782417 27765220 16.53 13.93
(1)+(B)(2)

TOTAL(A)+(B) 345022 186225838 181769622 100 84.23

(C) Shares held by Custodians and against 2 34867863 34862403 0 15.77

which Depository Receipts have been
issued

GRAND TOTAL 345024 221093701 216632025 100 100

(A)+(B)+(C)

1.3 Organisational structure of Videocon

Figure1.3: Organisational structure of Videocon

1.4 Production structure

Cost cutting Videocon was better positioned to shift the activities to low-cost locations and also it
could integrate the operations with the glass panel facility in India with the CPT manufacturing
facilities acquired from Thomson S.A. Videocon wanted to leverage its position in the existing parts
of the business and this acquisition would give it a strong negotiation position and could reduce
impact of glass pricing volatility. Videocon could also reduce the costs by upgrading and improving
the existing production lines.
Vertical Integration The acquisition helped Videocon in vertically integrating its existing glass-
shell business where it had been enjoying substantially high margins.[8] Videocons glass division
had the largest glass shell plant in a single location. This gave the company an unrivalled advantage
in terms of economies of scale and a leadership position in the glass shell industry. The acquisition
also gave Videocon a ready-market for its glass business and it was part of Videocons long-term
strategy to have a global vertically-integrated manufacturing facility.
Rationalization of Product Profile Videocon modified its product profile to cater to the changing
market needs like moving away from very large size picture tubes to smaller ones.
Apart from the overall strategy Videocon also had a plan on the technological front. It wanted to
improve the setup for the production line and line speed post-merger. Its focus was to increase sales
while reducing the costs and thereby improving the productivity of the existing line. The company
also wanted to foray in a big way into LCD panels back-end assembly. On the sales front the
company wanted to leverage on the existing clients of Thomson and build relation as a preferred
supplier to maximise sales. Also, Videocon could benefit from OEM CTV business with the help of
Videocons CTV division, invest for new models and introduction of new technologies.
Videocon has not been able to turn the plant around in Italy still. However it is getting support from
the local governments (which want to prevent job cuts) in form of grants. The government is in fact
trying to set up a Greenfield venture in form of a LCD manufacturing facility in partnership with
Videocon. The banks are also supporting Videocon and with help from all these quarters Videocon
expects to turn around the plant in Italy.[13] The Thomson plant has not turned around in Mexico as
well and in fact production has been reduced over there.InPoland,the situation is more promising
and Videocon hopes that plant over there will get in black in the very near future.[14] However the
surprise has been in the Chinese market .Despite facing a highly competitive market Videocon has
managed to turn a plant around while the other is on its way. In China Videocon is adopting a
different strategy for manufacturing CTVs as the local players dominate the market .It plans to
supply these players by taking advantage of low-cost nature of mainland(the number targeted by it
about 6 million CPT,s)

1.5 VIDEOCON STRATEGIES

1.5.1 Multi-brand strategy

Videocon International was the first Indian company to adopt the strategy of multi-brands.
Apart from its mid-priced brand Videocon, the company now hawks Toshiba, a premium
brand, and the low-priced brands Akai and Sansui. The multi branding technology paid off
as Videocon managed to hold on to a combined market share of around 19.6 percent, with
LG at 25.9 percent and Samsung at around 13.8 percent.
Overall, the shift in the power to trade is probably one of the defining developments. It is
important since the TV companies themselves have taken it seriously and embarked on
crafting longer-term strategies to accommodate this development. The effectiveness of their
strategy and the responses of the other players promise to deliver a few more years of
enterprising developments in the Indian TV market.

1.5.2 Backward Integration

Videocon integrated backwards by getting into manufacture of components such as electron
guns, metal parts and deflection yokes for CTVs and compressors, and electric motors and
plastic components for households appliances such as washing machines, refrigerators and
Air conditioners. The group integrated further to get in to manufacture of glass panels and
funnels, the key components for the manufacture of color picture tubes.
Videocon enjoys a unique synergy in the global CTV business from glass to CRT (Cathode
Ray tubes) to CTVs. - (From Sand to CTV). Together with other components for households
appliances. This high degree of backward integration bestows upon the company a unique
benefit over competition.

1.5.3 Videocon's Revenue mix

Figure 1.4: Videocon's Revenue mix
 1.5.4 Performance Measures

Figure 1.6: Performance Measures

CHAPTER 2: INDUSTRIAL ANALYSIS

2.1 Industry overview

COMPANYS PROFILE
Figure2.1: Today the group operates through 4 key sectors:

Consumer Electronics, Home Appliances & Compressor manufacturing in India

We enjoy a pre-eminent position in terms of sales and customer satisfaction in many of our
consumer products like Colour Televisions, Washing Machines, Air Conditioners, Refrigerators,
Microwave ovens and many other home appliances, selling them through a Multi-Brand strategy
with the largest sales and service network in India. Refrigerator manufacturing is further supported
by our in house compressor manufacturing technology in Bangalore.

Display industry and its components

With the Thomson acquisition Videocon has emerged as one of the largest Colour Picture tube
manufacturers in the world operating in Italy, Poland and China, continuing to lead through new
innovative technologies like slim CPT, extra slim CPT and High Definition 16:9 format CPT.

Color Picture Tube Glass

Videocon is one of the largest CPT Glass manufacturers in the world with a high level of
experience and technical expertise operating through Poland and India. Videocon will leverage on
this synergy after the Thomson acquisition to internally source glass for its CPT manufacturing
increasing efficiencies and lowering costs.

Oil and Gas

An important asset for the group is its Ravva oil field with one of the lowest operating costs in the
world producing 50,000 barrels of oil per day. The group has ambitious plans for expansion in this
sector globally.

2.2 Current issue of Videocon

Figure2.2: Videocon V1688 Twist & Turn available in market

Description:

Videocon V1688 Twist & Turn is the new stylish and well designed mid-range mobile phone by
Videocon which has just been launched in the market. The mobile comes loaded with lots of
attractive and impressive features as well as dimension. This mobile is priced at Rs. 6,995/- in
Indian market which is affordable than other mobiles having same features.

Videocon V1688 Twist & Turn is the 90 degree roted full QWERTY keyboard impressive mobile
phone that has 3.2 inches touchscreen display screen. This display screen of the device generates
resolution of 320x480 that shows pictures of better quality.

This amazing designed mid-range mobile has all the music features such as MP3 and MP4 with
formats of 3GP, AVI, RMVB video etc. It is boasted with a 2 mega pixel of camera that can capture
photographs at resolution of 1600x1200 pixels and video recording at format of 3GP and 15fps. It is
also loaded with dual speakers for loud music and a 3.5 mm audio jack.

The mobile supports Java language, EDGE & GPRS and stereo Bluetooth streaming (A2DP), while
comes pre-loaded of popular social networking sites like MSN, Yahoo, Facebook and Skype. The
mobile comes pre-installed a 2GB microSD while its memory can be upgraded up to 4GB through
using a memory card.

The mobile, Videocon V1688 Twist & Turn, supports dual SIM (GSM+GSM) that provides
excellent networking facility. This impressive handset is corporated with a solid 1000 mAh battery
that allows long talk and standby time. The mobile is available in Red, Yellow and Silver colour
shades.

2.3 IMPORTANT COMPETITORS

LG ELECTRONICS

LG Electronics rightly understood the consumer motivations to create magnetic

products, price them strategically, position them sharply and keep making the
magnetism more potent. Having understood the finer differences in consumer
motivations, it opted for sharp- arrow reasons-to-buy differentiation over the
blanket-all approach taken by most of the other players. It is an aggressive
marketer. It focuses on low and medium price products.

SAMSUNG

Initially the strategy of Samsung

in Potential
India was to create premium image by
emphasising global brand. After facing stiff competition from another Korean major-
entrants
LG, Samsung also started playing price game. In 2004 it reverted back to its premium
(Threat of
positioning, although it resulted in some loss of market share. In line with the Global
Entry) India is seeking to acquire digital
Digital Initiative of the Parent Company, Samsung
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.
Suppl Industry Buye
ONIDA iers Compete rs
Its popular devil ad (Suppl
although had titors
engendered a strong (Buypull towards the
emotional
brand, technologically ier er plugged the gap
it represented no advancement. The company
(Segment
by touting its digital Power Poweable to hold its
technology. Like Videocon, it has also been
rivalry)
market share. The world-class
) quality of Onida has enabled ther)company to make a
breakthrough on the export front. It has technical tie- up with the Japan Victor
Company, better known as JVC. So focused is Onida on positioning itself on the
Substitu
premium, high- tech plank that it is even planning to push its own envelope on
tes

(Threat of

substitute
obsolescence, much. The strategy is aimed at further broad basing the product
offering of the company, which has largely dominated the top-end of the television
market, across multiple market segments.

VIDEOCON

Videocon has always been a price player and has an image of a low price brand. This
entails providing more features at a given price vis--vis competitors. It has taken
over multinational brands to cater to unserved segments, like Sansui- to flank the
flagship brand Videocon in the low to mid priced segment, essentially to fight against
brands like BPL, Philips, Onida and taken over Akai- tail end brand for brands like
Aiwa.
Videocon is one of the largest manufacturers of television and its components in
India and thus has advantages of economies of scale and low cost due to
indigenisation. It has the widest distribution network in India with more than 5000
dealers in the major cities. It also has a strong base in the semi-urban and rural
markets. Due to its multi-brand strategy, it has at present multiple brands at the same
price point. This has led to a state of diffused positioning for its brands. It has also led
to a cannibalisation of sales among these brands. The flagship brand Videocon has
lost market share due to the presence of Sansui in the same segment. Because of
reduction in import duties on CPT the cost advantage of Videocon is also on the
decline. Hence it is facing rough weather and also trying to boost exports.

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

2.4 ENVIRONMENTAL SCANNING

PEST ANALYSIS

1. Political Factors

Labour unions effects a lot the production

Resolution to reduce emission of carbon footprints in the atmosphere

 Anti-dumping duty on imported color picture tubes

2. Economical Factors

Growth of retail sector expected to reach 16% by 2011-12from 4% in 2007

High investments are needed in the consumer durables

Emergence of organized retail market with large players likeCroma, Next, Reliance Digital
leading to lower prices and higher varieties

3. Social Factors:

Changing perception of luxury to necessity

In rural areas there is poor infrastructural facilities likeavailability of electricity

Demand of the consumer durables is seasonal and cyclic

Highly growing consumer durable market

4. Technological Factors:
Improved electricity consumption

Higher quality products

Technological is changing at a very fast rate.

2.5 PORTERS MODEL

Figure 2.3: Porters Model
In order to understand the industry better, we analyze the industry using Porters Five Force Model-
- Threat to entry
- Rivalry of among existing firms
- Bargaining power of buyers
- Bargaining Power of Suppliers
- Threat of Substitutes

Threat to Entry-
Entering the CTV market isnt very easy. One of the most important features needed is a
good distribution system which isnt something that can be developed overnight.

Also a television today is a style statement. Therefore the brand plays an important role in
influencing the purchase decision. For a new company then entering this market, not having
a recognized brand name is a threat to entry.
Rivalry among existing firms-
There is strong competition among the current players. The main players being LG,
Samsung, Onida, Videocon, Philips, Sansui. Some of the regional players are- Hyundai and
Haier are new entrants in the CTV space in addition to a number of small regional players.

This increased competition has ensured that advertising costs are an integral part of the
players total cost. A lack of product differentiation means that price is a competitive feature
that intensifies rivalry. The highest price reductions during 2002-03 to 2005-06 were in the
20inch and 21inch CCTV category.

With the future being in LCDs, this market is likely to see price reductions future.

It is expected that realizations will fall with increased competition.

Bargaining Power of Buyers-

The TV market today is a consumers market where the consumer has the upper hand with
him having the power of choosing from a variety if brands.

This bargaining power of the buyer has forced the players to offer credit facilities on sale, to
provide lower EMIs and excellent after-sales service.

The intense dealer competition also benefits the consumer in terms of prices and offers
available.

Inventory carrying costs for television companies are high. This is a boon for the consumers
as it translates into higher bargaining power for the consume

Threat of Substitutes-
For a television, the substitute can only be a functional substitute. The functional use of a
television is to watch programs, live events etc. This today can also be done on a computer.

Theaters too can be a substitute to watching movies at home.

 Today with various multiplexes and theaters providing screenings of live events such as
sports telecasts etc along with the luxury of good food and the opportunity to enjoy the
event with a number of other enthusiasts, the TV can be substituted if the TV is bought only
to watch certain events.

However if the television on considered to be a style statement and a lifestyle statement,

then consumers will seek to keep upgrading the type and the model of their television sets.

Bargaining Power of Suppliers-

PCBs (Printed Circuit Boards) & CRTs (Cathode Ray Tube) are key raw materials in the
production of CTVs.

CRT accounts for 46-48 per cent of the total raw material costs of a CTV. PCBs and
housing components account for 33-39 per cent of total raw material costs.

Domestic CPTs prices tend to follow Global price trends. Therefore the suppliers do not
have much of bargaining power in this regard.

Cabinets are sourced from plastic manufacturers and as these manufacturers supply to
different industries, they therefore do have a bargaining power, especially in comparison to
CRT suppliers.

CHAPTER 3: MARKETING STRATEGIES:-

3.1 PRODUCTS OF COMPANY

CONSUMER ELECTRONICS

Figure 3.1: Figure of Plasma

Figure 3.2: Figure of Split A/C

Figure 3.3: Figure of Window A/C

Figure 3.4: Figure of Mobile Phone

 Figure 3.5: Figure of Washing Machine

Figure 3.6: Figure of Refrigerator

Figure 3.7: Figure of Home Theater

 Figure 3.8: Figure of Dish TV

Figure 3.9: Figure of LCD Television

3.2 4Ps

The 4Ps includes the Product, Price,

Place and promotion.

Product Mix
Product mix is the set of all product and items a particular seller offers for sale. Product mix
consists of various product lines.
The width of a product mix refers to how many different product lines the company carries. The
Videocon television has product mix width of five lines. I.e. plasma, LCD, Slim, flat and
Conventional.
The length of a product mix refers to the total number of items in the mix.
i.e. for the line of LCD the length is 2 as it has two items 50 PDP and 42 PDP.
The depth of the product mix refers to how many variants are offered of each product in the line,
i.e. For LCD the depth will be 2. As Videocon is offering only one product in 50 PDP and 42
PDP.
The three product-mix dimensions permit the company to expand its business in three ways.

It can add new product lines, thus widening its product mix.

It can lengthen each product lines.

It can add more product variants to each product and deepen its product mix.

Width, Length & Depth

Width = 5 (Plasma, LCD, Slim, Flat, Conventional)

Plasma LCD Slim Flat Conventional

In the
50PDP42 LCD 29 slim 29 flat 21 FFST
product mix
42PDP32 LCD 21 slim 21 flat 20conv of
Videocon, it
26 LCD 15 flat 14conv
is having 37
20 LCD different
models,
19 LCD
which gives
Length 5 2 3 3 them their
product line
Depth.
PLASMA

Plasma television technology is similar to the technology used in a fluorescent light bulb. The
display itself consists of cells. Within each cell two glass panels are separated by a narrow gap in
which neon-xenon gas is injected and sealed in plasma form during the manufacturing process.
The main advantage of Plasma over CRT technology is that, by utilizing a sealed cell with charged
plasma for each pixel, the need for a scanning electron beam in eliminated, which, in turn,
eliminates the need for a large Cathode Ray Tube to produce video images. This is why traditional
televisions are shaped more like boxes and Plasma televisions are thin and flat.

Advantages of Plasma Television:

Largest Screen Formats.

Superior Contrasts.

Versatile.

Capable Of Displaying Full HDTV &Dtv Signal.

Capable Of Displaying Xga, Svga&Vga Pc Signal.

Wide Viewing Angle.

Wide Rage Of Richer Color Over 16 Million.

Superb Realistic Images.

Less Expensive Than Lcds.

Life More Than 30,000 Hours.

Wide Screen Aspect Ratio around 16:9.

Perfect Flat Screen.

Uniform Screen Brightness.

Slim & Space Saving Design.

50" PDP

Integra 50
10000:1 Contrast Ratio
3:2 & 2:2 Pull Down
HDMI Compatible
3-D Video Noise Reduction
PC Input

42" PDP

16.77 Million Color

10000:1 Contrast Ratio
3.2 & 2:2 Pull Down
1500cd/m2 Brightness
HDMI Compatible
3-D Video Noise Reduction

LCD
The flabs are out and now technology has switched over to sleek and slim products, LCD being the
prominent amongst them. LCD technology is the recent breakthrough in consumer electronics and
because of its esteemed advantages this segment is growing day by day.
Videocon are launching this range under the sub brand Integra. INTEGRA term indicates the
integration of various systems connectivity with LCDTV.
This is an integration of best sound quality and excellent picture quality.
What is TFT-LCD?
Meaning of this term is Thin Film TransistorLiquid Crystal
Display. TFT technology used in this category offers the best
image quality in flat panels. This technology is also called as
Active Matrix Technology.
 40" LCD, 32" LCD, 26"LCD, 20" LCD, 19" LCD

Slim
With Continuous Research & Development, Videocon brings a revolutionary advancement in
physics & brings new Slim & Trim Television.
The Most significant feature of the Slim & Trim Television is its one kind of super slim picture tube
technology. This has enables us to make the TV 42% Slimmer.
Slim Picture tube is a product with reduced depth providing the TV and monitor producers with
opportunity to design Slim, flat and stylish TVs comparable to plasma or LCD panels maintaining
Good picture Quality

29" SLIM
21" SLIM

Flat

Videocon Bada Woofer with Surrounds Bass Technology

Bass Amplification by Dynamic Alignment (BADA) woofer is a revolutionary technology that
offers a new sound to create an unbelievable sound space
Videocon unique Bazoomba Woofer Technology

Videocon's superior Bazoomba Woofer Technology incorporates a unique conjugate arrangement of

Woofer motors that ensures rich bass reproduction.
The Bazoomba Woofer Technology
Enables the generation of the lowest bass frequencies from a small enclosure (Bazoomba tube).
Enables cleaner and tighter bass reproduction due to acoustic cancellation of distortion in the even
harmonics
29" TFT
21" TFT
15" TFT

Conventional TV

21" FFST
20" CONV
14" CONV

Pricing

The pricing of the Videocons various models is as following.

Plasma TV : Rs. 59,990 - 2, 40,000
LCD TV : Rs. 28,400 89,900
Slim TV : Rs. 10,400 18,900
Flat TV : Rs. 5,500 18,400
Conventional TV : Rs. 4,600 - 9,500

Place

Videocon has its presence all throughout India.

They have their presence in 25 states and each state has at least 2 divisions per state. In total they
are having 78 divisions.Videocon has around 1800 dealers in India. They are having 96 service
centers across India.

Promotional Activities

Focusing on LCD, Plasma and 29 Flat TVs since 2006.

By institutional selling. Company used both TVC as well as print media for promotion. The
company is using outdoor media promotions in hording and bus shelters to high light the feature
packed advantages.
Major tie ups in the background IIT alumni/ Videocon Santos ham film awards 2006 with ZEE and
ICC Cricket champions trophy.

Seasonal offers
Trip to Germany during FIFA world cup
Videocon bonanza offer ( har din diwali) during diwali
Chance to win car, motor bike and LCD TV.

3.3 SEGMENTATION, TARGETING & POSITIONING (STP)

SEGMENTATION:

Market segmentation is the process in marketing of dividing a market into distinct subsets
(segments) that behave in the same way or have similar needs. Because each segment is fairly
homogeneous in their needs and attitudes, they are likely to respond similarly to a given marketing
strategy. They are likely to have similar feelings and ideas about a marketing mix comprised of a
given product or service, sold at a given price, distributed in a certain way and promoted in a certain
way.
The process of segmentation is distinct from targeting (choosing which segments to address) and
positioning (designing an appropriate marketing mix for each segment). The overall intent is to
identify groups of similar customers and potential customers; to prioritize the groups to address; to
understand their behavior; and to respond with appropriate marketing strategies that satisfy the
different preferences of each chosen segment.

Segments based on Income

Plasma: Income group of more than 50,000
LCD: Income bracket of Rs 20,000 and above
Slim: Consumer in the income bracket of Rs 9000-15000
Flat: Consumer in the income bracket of 7000-12000
Conventional: income bracket of Rs 3000-6000
Segments based on social class
Plasma: rich class
LCD: upper middle class and rich class
Slim: middle class
Flat: middle and lower middle class
Conventional: lower economic class.

Benefit Segmentation:
Conventional, Flat screen Slim, LCD, and Plasma can also segmented on the basis of benefits that
an end consumer would receive from them.

User Status:

TV market can be classified into non users of TV and potential users in term of graduating to a
higher segment like slim, LCD,Plasma from basic conventional TV.

Loyalty status:
On the basis of Loyalty status
Hardcore Loyal: brand loyal to Videocon for a long time in terms of purchasing products of
Videocon
Shifting Loyal: who shift loyalty from other brands to another
Switchers: not loyal to any brands so attract them to Videocon and convert they brand loyal.

TARGETING:

Once the firm has identified its marketing-segment opportunities, it has to decide how many and
which ones to target. Marketers are increasingly combining several variables in an effort to identify
smaller, better-defined target groups.

The decisions involved in targeting strategy include:

* Which segments to target?
* How many products to offer
* Which products to offer in which segments
In premium segments like flat screens and FDPs the growth in sales has been many times the
industry growth. More importantly, high end product sales are no longer restricted to metros.
Consumer in tier-2 cities seems to be as evolved in lifestyle needs. The consumer profile, too, has
changed. Higher disposable incomes, greater aspirations and younger demographic have increased
demands for the technologies. And Videocon is targeting this segment.

POSITIONING:

Positioning has come to mean the process by which marketers try to create an image or identity in
the minds of their target market for its product, brand, or organization. It is the 'relative competitive
comparison' their product occupies in a given market as perceived by the target market.Once the
competitive frame of reference for positioning has been fixed by defining the customer target
market and nature of competition, marketers can define the appropriate points-of-difference and
points-of parity associations.

Points of Parity (POPs) are associations that are not necessarily unique to the brand but may in fact
be shared with other brands. They represent necessary-but not necessarily sufficient-conditions for
brand choice.

Videocon's Points-of-Parity are good quality Picture and good sound.

Points-of-Difference (PODs) are attributes or benefits consumers strongly associates with a brand,
positively evaluate, and believe that they could not find to the same extent with a competitive
brand.

Videocon's POD is the quality product with low cost.

With the strong backward integration Videocon can provide the products with low cost.
Thus, Videocon is positioned itself as a reliable and value-for-money product

3.4 DISTRIBUTION CHANNELS IN THE INDUSTRY

The Refrigerator companies in the industry use different distribution channels to reach the
customer. These are as follows:

1. In this type of channel the company uses its sales representatives to deal with the dealers
directly. The dealers place the order through the sales representatives who visit them periodically,
and the products are delivered directly from the company.
Some companies appoint Direct Dealers who act as their Franchisee Outlets or their Exclusive
showroom.

Figure 10: DISTRIBUTION CHANNELS

2. In this channel of distribution the company appoints distributors on the basis of District/
Population /No of Dealers to be handled by one distributor. The area of operation and its potential is
also taken into consideration.
Some of the companies make the distributor totally responsible from appointing the dealers to
providing after sales service.
 Figure 11: DISTRIBUTION CHANNELS

3. In this channel of distribution the company appoints Distributors as well as Direct Dealers. The
company appoints distributors to deal with small dealers who order small quantities. With the
dealers who have good potential and sales the company deals directly. The Korean Multinational
follow this channel where they appoint Distributors for upcountry towns and direct dealers for big
cities and major towns eg. Ahmedabad.

Figure 12: DISTRIBUTION CHANNELS

4. In this channel the company appoints a C&F agent who acts on behalf of the company. The
C&F agent is totally responsible for appointment of Distributors and Direct Dealers. He sells to
both the Distributors and the Direct Dealers at the same rates.

Figure 13: DISTRIBUTION CHANNELS

3.5 PROMOTION STRATEGIES

Product strategy
1. Stop all curved CPT production
2. Shift focus to LCD CTVs; target: by December 2007.
3. Launch Slim21 and focus Slim 29 immediately. Target is to have almost all CRTs
production shifted to Slim by 2007
4. Take full advantage of Digital and HDTV revolution, gain leadership in HDTV Slim TV
segment through OEM and model mix worldwide strategy.
5. Study unique product range / pro large to fill market gaps in markets such as Asia and
Eastern Europe / CIS / South America
6. Focus on reduction of costs through reduction of glass, shift to AK mask and reduction of
process rejection.
Sales Strategy

1. Improve relationship with existing clients ; Use of Thomsons excellent relations as

preferred supplier to maximize sales
2. Improve service and quality without putting pressure on price structure
3. Fetch a better price and avoid crisis of huge stock.
4. Leverage Slim product offering
5. Launch LCD panels assembly to be a major actor of the Flat Panel Displays market (which
is expected to account for 50% of the market by 2012).
6. Benefit from OEM CTV business with the help of Videocons CTV division, invest for new
models, introduction of new technologies.
7. upgrade to LCD's schemes

easy EMI.

Re. 1 offer.

8. Improve after sales service

9. Free service camp on the wheels.

Industrial Strategy

1. Consider improvement in production lines set-up: investments, line speed up / mergers?

Target is to increase output and decrease product costs by increasing productivity of existing
lines
2. This will reduce manpower and overheads per picture tube by 30% that will be redeployed
on new activities in the sites (new technologies)
3. Improve the furnace output in the Poland Glass factory by making some changes into
furnaces including electrical boosting. Consider increasing capacity through one more
furnace.
4. t is envisaged that 100m will be invested in the next 2 years for this purpose
5. Expand into LCD panels back-end assembly (from buying LCD arrays from big suppliers
like LG, SDI, CMO, AUO, Sharp)
Cost Strategy

1. Leverage the strong base of Videocons glass business: Thomson-Videocon partnership will
have a very strong negotiation position and can reduce impact of glass pricing volatility.
2. Reduce production cost by upgrading and improving the production lines. Thomson-
Videocon partnership will have its own base of additional 4 million units CTV (other than
India)
3. Necessary to rationalize R & D efforts, necessary to make its cost below 1.5% of sales

Product Development

1. i-TV web enabled TV at the price of 13,900 with exchange offer for an older version.
2. TVs With hard disk to store programs.
3. Wall mounted Flat CTVs at the price of 12,990.
4. Aimed at fulfilling needs of customer who can not buy LCDs but prefer to do away with
CTV models which occupy space in living rooms.
5. CTVs with inbuilt set top box
6. Tie up with DTH player and provide annual subscription offer.
7. to provide Direct to home services.
8. Bluetooth enabled CTV.

CHAPTER 4: KEY LEARNINGS FROM THE COMPANY AND

RECOMMENDATIONS:-

4.1 Analysis of Net Profit

EARNINGS: Videocon, July- September net profit Rs.1.6 bln, up 7% on year Videocon Industries
Ltd Thursday reported net profit of Rs. 1.6 billion for Jul-Sep, up 7.14% from a year ago.In a news
release, the company said its net sales in the quarter were Rs. 29.85 billion, up 14% from a year
ago.Total expenditure for the quarter stood at Rs. 25.95 billion, up 14.7% from a year ago.Raw
material cost expanded 17.6% to Rs. 10 billion and employee cost stood at Rs. 499.4 million, up
47.8% from a year ago.Revenue from the consumer electronics and home appliances segment was
at Rs. 27.31 billion, up 18.6% from a year ago and revenue from crude oil and natural gas segment
was down 20.3% at Rs. 2.54 billion.The company said it has extended its current accounting year
by three months and thus the current year will be of 15 months beginning Oct 1, 2009 and ending
Dec 31, 2010.

Profit loss account

Sep ' 09 Sep ' 08 Sep ' 07 Sep ' 06 Sep ' 05
Income
Operating income 9,163.04 9,753.65 8,285.42 7,218.82 5,460.25
Expenses
Material consumed 5,614.40 5,291.05 4,954.79 4,162.74 3,070.27
Manufacturing expenses 773.74 1,285.85 988.23 986.28 916.22
Personnel expenses 126.42 115.82 105.35 94.70 49.53
Selling expenses 550.04 505.07 470.62 412.12 360.47
Adminstrative expenses 224.47 163.62 94.21 222.71 207.96
Expenses capitalised - - - - -
Cost of sales 7,289.07 7,361.40 6,613.19 5,878.56 4,604.44
Operating profit 1,873.97 2,392.25 1,672.24 1,340.26 855.81
Other recurring income 27.39 71.92 71.55 127.21 35.66
Adjusted PBDIT 1,901.37 2,464.18 1,743.79 1,467.47 891.47
Financial expenses 665.75 431.86 337.17 254.75 244.96
Depreciation 577.15 660.21 418.39 484.00 320.15
Other write offs - - - - -
Adjusted PBT 658.46 1,372.11 988.23 728.72 326.36
Tax charges 177.68 312.67 227.68 95.16 -166.03
Adjusted PAT 480.78 1,059.43 760.55 633.56 492.40
Non recurring items -80.12 -205.14 94.67 -139.82 -152.50
Other non cash adjustments 73.68 0.72 3.54 0.30 2.36
Reported net profit 474.34 855.01 858.76 494.04 342.26
Earnigs before appropriation 2,536.34 2,306.65 1,696.84 932.95 602.36
Equity dividend 46.25 22.95 80.30 77.35 55.19
Preference dividend 3.68 3.68 3.68 3.39 2.50
Dividend tax 8.49 4.53 14.27 11.32 8.09
 Sep ' 09 Sep ' 08 Sep ' 07 Sep ' 06 Sep ' 05
Retained earnings 2,477.92 2,275.49 1,598.59 840.89 536.58

Profit and Loss account of this firm show that operating income of this firm is increasing. It
was 5460.25 in Sept 2005, but on Sept 2006 it increasing to 7218.82. This increase shows the
growth of this firm. On the other hand, expenses Sept 2005 is 3070.27 Rs. it was also increasing to
4162.74. But expense of this firm continuously increasing on the other hand operating income
increasing in Sept 2008- 2009 by 590.62.it show that firm growing rate falling. In short we can say
that firm expenditure rate is more than income rate. it shows that firm is doing strongly in the
market.

Throughout the balance sheet

the firm mainly source of firm money is secured loan because it is increasing continuously, it was
2776.10 on Sept 2005 but in Sept 2006 it was 3608, it means firms large amount of money arrange
from secured loan. Firm is also getting fund from issuing of share capital firm future power reserve
and surplus also increasing it show that increasing rate power. Balance show the financial position
of the firm.
4.2Market Share and Growth Rate of Videocon

Videocon Industries Ltd

Videocon holds 25% market share in the consumer goods market in India. It is oneof the largest
CPT manufacturers globally, with operations in India, Mexico, and Italy
Videocon, founded in 1985, is today one of the largest corporate groups in India. It is now venturing
into power and telecom. It is one of the largest manufacturers of Colour Picture Tube
(CPT)globally. It has close to 25% market share in home appliances segment in India and aims to
double this business in next five years. Apart from its core businesses, the company isaiming to
grow its power and telecom (handset and services) businesses aggressively through large scale
investments.

Figure 4.1: Market Share (%) for FY09

Videocon Industries is primarily engaged in two core businesses

Manufacturing, assembly, marketing and distribution of consumer electronic products &

home appliances

Consumer Electronics, Home Appliances & Compressor manufacturing: Products

include home entertainment systems,microwave ovens, Colour Picture Tube (CPT) &
liquid crystal display (LCD) televisions, refrigerators, washing machines,
airconditioners, small appliances, glass shells, compressors / motors and other
components
The Company has Research & Development centres located in China, India and Japan
 Display industry and its components: Manufactures colour picture tubes at its facilities
in Italy, Poland and China

Colour Picture Tube (CPT) Glass: Operates manufacturing facilities in India and Poland

The Company, through its wholly owned subsidiaries and JVs, is engaged in exploration activities
in oil & gas fields in Brazil, Mozambique, East Timor, Oman and Australia
Entry into the Telecom business: In March 2010, Videocon Telecommunications Ltd, a unit
of Videocon Industries Ltd, launchedmobile services based on the global system mobile
(GSM) platform

Power business: Pipavav Energy, the Companys subsidiary, is implementing a thermal

power project in Gujarat with a capacityof 1,200 MW; Videocon is also considering power
projects in the other parts of India and evaluating alternate technologies forthe same.

Plans to set up three more thermal power generating units with a combined capacity of
4,800MW in Maharashtra,Chhattisgarh and Asansol, with a total investment of USD6.5bn

The equity shares of the Company are listed on the Bombay Stock Exchange and National
Stock Exchange of India; the Global DepositoryReceipts (GDR) and Foreign Currency
 Convertible Bonds (FCCB) issued by the Company are listed onthe Luxembourg Stock
Exchange and Singapore Exchange Trading Securities respectively

Company

4.3 SWOT ANALYSIS

The SWOT is a strategic planning tool to evaluate Strength(S) Weakness(W) Opportunities(O) &
Threats(T) involved in a project, in a business venture or in any other situation requiring a decision.
The SWOT analysis is to explained with help of following diagram

Strengths:

1. Technological skills
2. Leading Brands
3. Distribution Channels
4. Customer Loyalty/ Relationships
5. Production Qualtiy
6. Scale
7. Management

Weaknesses:

1. Absence of important skills

2. Weak brands
 3. Poor access to distribution
4. Low customer retention
5. Unreliable product/ service
6. Sub-scale
7. Management

Opportunities:
1. Changing customer tastes
2. Technological Advances
3. Change in government politics
4. Low personal taxes
5. Change in population age
6. New distribution channel

Threats:

1. Changing customer base

2. Closing of geographic markets
3. Technological advances
4. Changes in government politics
5. Tax increases
6. Change in population age
7. New distribution channels
 CHAPTER 5: RESEARCH METHODOLOGY

5.1 OBJECTIVE OF THE STUDY

T h e o b j e c t i v e o f t h e p r o j e c t i s f u r t h e r c l a s s i f i e d i n t o p r i m a r y a n d secondary
objective.

Primary objective:-

Find out the market size of refrigerator (in percentages) of different brands in N C R .
For this purpose, the researcher has to do a survey by interviewing the
households and finding out the market share of Videocon brand in accordanc e with other
brands.

Secondary objective:-

To know where does the Videocon brand of refrigerator stands in comparison to other brand
and what are the various aspects where it needs to improve in order to remain in the market and
compete with other brands.

5.2 RESEARCH METHODOLOGY

A survey has been done and data is collected from various company`s purchase manager all
over Guragon and some part of Delhi. Primary data has been collected by interviewing customers
and purchase managers, while secondary data has been collected from the sites of
Videoconworld.com.

Sampling plan for survey

Sampling units Purchase manager and customer

Sampling size 5 companies and 200 customer

Sampling area Gurgaon

5.3 QUESTIONNAIRE METHODOLOGY

The questionnaire has to be self administered in order to know the exact views & some other
suggestions of the purchase manager and customers the questionnaire were administered in the
form of a small interview.

The advantages of the questionnaire method is its versatility, almost every problem of making
research can be approached from the questionnaire standpoint. Every marketing problem involves
people & its solution can be obtained by asking these people about the problem.

Data analysis procedure :-

The data has being analyzed using excel wherein various factors have been determined &
their frequencies have been measured. Some of the factors to determine are as following.

Brands:-

The various brands selling in the market from the dealers point of view the predominant
brands in terms of sales, after sales services & services provided quality etc.

Awareness level :-

The awareness level regarding the different types of air conditioners is judged according to
the people purchasing it.

Purchase manager and customer network:-

Various attributes were rated & then ranked by the purchase manager and customer
involved in purchase of the product namely, excellent, good, satisfactory & poor and what
changes they want to improve Videocon A.C.

Positioning level:-

The positioning of air conditioners is judged by the total number of customers asking for
the brand name & are willing to pay for the same. This is also termed as the pull
factor.

DATA ANALYSIS AND RESULT:-

The market survey showed that the sales volume of Videocon is the highest followed by
Daikain, Carrier, Hitachi, LG and other AC companies.
QUALITY OF AIR CONDITIONERS:-

Daikain serves as the top leader in providing best quality to its customers, followed by
Hitachi and then Videocon.
CUSTOMER CONSIDERATION OF PRICE:-

According to the market survey conducted 300 company`s manager and customers
considered price as a major determinant while buying Videocon air conditioners, because
Videocon started new scheme Corporate Sales.

POSITIONING OF VIDEOCON AIR CONDITIONER IN THE

MARKET :-
Amongst the dealers surveyed 41 % agreed that the positioning of Videocon air conditioner
in the market is excellent whereas 33% feels that it is good , & 17% says that is
satisfactory and remaining 13% says poor.
MAINTAINENCE OF GOOD PUBLICRELATION :-

According to the market survey conducted, About 77% of the correspondent say that
Samsung maintains a good public relation with its dealers whereas 23% does not have
the same response.

INSTALLATION AND OPERATION:-

According to the market survey conducted, Hitachi leads the market in providing
services in terms of installation & operation followed by Videocon, Daikain, Blue Star,
Carrier, Voltas, LG and then ogeneral.

ADOPTION OF VARIOUS PROMOTIONAL TOOLS:-

Advertisement is regarded as one of the major promotional tools with a share of
51% followed by sales promotion, personal selling and direct marketing.

MAINTAINENCE OF SUFFICIENTNET WORK:-

Amongst the Managers, dealers, Customer surveyed 79% said that Samsung maintained
a sufficient network whereas while 21% provided negative response.

CHAPTER 6: FINDINGS

FINDINGS
With strategically located manufacturing bases and an enviable distribution network of around 90
branch offices, 10,000 distributors & 400 after-sales service centers across India, VIL enjoys a
unique 80% plus penetration in the market place.

A high degree of backward integration ensures that VIL has most of the vital components under its
control and bestows upon it unique benefits over competition uninterrupted supply, shorter
turnaround time, cost advantage and quick adaptation to changing customer needs.

VIL is looking to strengthen its presence through a host of big ticket acquisitions/asset buyouts
Daewoo Electronics (South Korea), Chunghwa Picture Tubes (Taiwan), Pioneer (Japan) and other
brown-field expansions will help VIL expand its horizons.

VILs glass division, VNG, is the largest single location glass shell plant, enjoying economies of
scale and a leading position in the global glass shell industry. Additionally, integration of its
acquired Thomson Colour Picture Tube (CPT) plants with its Indian business would not only reduce
the cost of production, but also give its glass shell units a ready market.

The Thomson acquisition includes R&D centres and access to over 2,000 patents, which would
enable VIL to launch new products as well as counter the threat posed by the conventional TV
market being rapidly overtaken by hi-tech products in overseas markets.

Increasing demand & high prices in the oil & gas industry will not only lead to improved
realizations, but along with low operating costs that the Ravva oil & gas field enjoys, it can
translate into a bonanza for VIL.

VIL has earmarked USD 13 MM (FY07) & USD 24 MM (FY08) as capex for its oil & gas
business, in order to increase the extraction from the field. It has also embarked upon Infill Well
Drilling and exploration & production of three new blocks; LM-403, Back Fault Block & LO-110,
all in the Ravva field. The probable reserves in the Ravva Oil field are estimated to be as high as
400 MM barrels, of which only about 160 MM barrels have been produced. Thus, a huge upside
potential exists for the company.

VIL is exhibiting substantial panache by fruitfully working towards bidding for and more often than
not, attaining exploration and production rights in many countries around the world. It is well on its
way to earning remarkable profits & achieving a prominent global standing.

CHAPTER 7: CONCLUSIONS AND SUGGESTIONS

CONCLUSIONS AND SUGGESTIONS
Turbulent is the word that aptly describe the scenario in CTV industry last financial year. Marketers
by frequent price cuts and larger than live Marketing game plans, competition reached its new highs
and lows. It is no longer sufficient to just be competitive, a company which has to survive has got to
have competitive advantage. One needs to take strategic initiative in the short run to achieve the
desired positioning in future. One has to foresee tomorrow.

Understanding competition today involves three levels:

Competition for intellectual leadership for new ideas that create new advantages.

Competition for translating these ideas into product/service faster than others.

Competition for market share.

Do not nature any PARADIGMS because today anything is possible

Search for newer markets than expanding your customer base.

Come out with state of the art, feature packed affordable and competitive advantageous products.

Set Benchmarks for growth.

Improve up on distribution channels for viable coverage of the market.

Wear out competition through trend setting, inimitable tactical moves based on our infrastructure
strengths.

The strategic intent should be clear down the management.

Work on your strengths i.e. Infrastructure, financial base, backward integration.

POP and MERCHANDISING material should be mad as per international market.

CORPORATE TRAINING PROGRAMME for Development of manpower from external faculty.

We have so far identified the various areas on which Videocon and other major Indian companies
need to improve upon to achieve the desired level of competitiveness. Only these improvements
would give Videocon and the other Indian companies base to compete with the MNCs and help the
Indian companies to reduce the impact of MNCs on the Indian Market in the future. Indian
manufacturers will have to react quickly because any delay in reacting to the threat posed by the
MNCs would only give the MNCs time to establish themselves in the market. With their expertise
and financial capacity they would be nearly impossible to compete with once they get a firm foot
hold in the market. The future

But the battle has only started, and the foreign companies are here for the long term. They can
sustain losses for years to come in order to gain market share. What they are doing at present, is
building up distribution networks to cover every nook and corner of the country and, setting up
manufacturing facilities.

Only those Indian manufactures which have a strong focus on manufacturing and technological up
gradation will survive in the long run, although with a much smaller market share than they have at
present. Small companies will be sidelined totally and will exit from the CTV market altogether.

Videocon has always been driven by its Value -for-money strategy. The company needs to identify
critical success factor and work assiduously towards achieving it.

SUGGESTIONS
To strengthen and maintain & its leadership status, the Videocon group has clearly charted out its
course for the future. Aggressive development is in full swing at the R & D Centres to bring out
state-of-the-art technologies including True Flat, Slim, Extra Slim, Plasma & LCDs, at the earliest.
Cost rationalization processes - are in various stages - including rationalizing factories in Europe,
increasing automation and improvement of efficiency in China, accessing flass shells from India for
international CPT facilities and a lot more - are in various stages of implementation Internationally
all existing client relationships are being strengthened. The cost competitiveness and increase in
capacity in Polland has opened up big opportunities in the OEM business. Last but not the least, in
the domestic market consolidation with multiple brands paves the way for an unassailable lead in
the market.

In the Oil & Gas business, having all the basic operator capabilities of a prospecting entity, the
group is looking to add more explorations and production depth as also oil bearing assets. The
group will also get into gas distribution in India significantly.
 BIBLOGRAPHY

1. http://en.wikipedia.org/wiki/Videocon

2. http://www.videoconworld.com/

3. http://www.google.co.in/

4. www.branders.com

5. www.viewcentral.com

6. www.eventmarketer.com

7. www.mobilemarketingjoblist.com