REPORT ON VIDEOCON

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Videocon  Report Transcript

RESEARCH METHODOLOGY Two types of data have been taken for the completion of this project. • Primary data • Secondary data Primary data We got primary data from vis-à-vis interaction with showroom managers, dealers, marketing personnel of the show rooms of consumer durable products. Tools used: i. Questionnaire ii. Personnel interview iii. Telephonic interview Secondary data i. Internet ii. Library iii. News paper articles Based on the information obtained from the above sources concepts were developed on which analysis was made. INFORMATION FROM DEALERS CONTACTED MOST of the dealers of

consumer durables of north Delhi to know the following: • To know the sales of CTV, Washing machine, and refrigerator in northern market of Delhi. • To know the sales of videocon in front of its competitors • To know the problem of various dealers • To know the recommendations of the dealers for promoting sales of videocon product in northern region of Delhi. RESULT • Most of the sales of videocon are in the region of colour television only. • Videocon has a strong hold in rural market of north Delhi. • Supply is not proper in some parts of north Delhi • After sales service of videocon is not satisfactory • Videocon provides good margin to dealers. • Videocon has an affordable price tag. PROBLEMS • Proper advertisement of videocon products is not there. • After sales service is not satisfactory. • Supplies of products are not regular. RECCOMMENDATION • Proper advertisement should be there for all videocon Products. • Supply should be in time. • After sales service should be provided in time. • The quality of A.C’s should be improved. CONSUMER DURABLE INDUSTRY IN INDIA The consumer durables industry has seen a decent 48.23 per cent increase in sales volumes in the April-June quarter but the value realization has dipped by 6.4 per cent to Rs 2,948.77 crore (Rs 29.487 billion) from Rs 3,150.31 crore (Rs 31.503 billion), recorded in the same period in the previous year. It is due to a slowdown in refrigerator and colour television sales -- the two cash cows. The increase in sales volumes to 106,610 units from 71,923 units in the same period last year was triggered by sales microwave ovens (91 per cent growth) and washing machines (8.9 per cent growth). "It is a transition phase. While urban consumers are still waiting to shift from an ordinary TV set to a plasma TV, people in rural India are deliberating on whether to shift from direct-cool to frost-free refrigerators. It will take a while before the consumer durables market takes off. MISSION AND VISION MISSION TO KEEP EXCELLENCE IN RESPECTIVE BUSINESS FIELDS & ACHIEVE TOP POSITION GLOBALLY OFFERING QUALITY PRODUCTS THROUGH INNOVATION, TECHNOLOGY AT AFFORDABLE PRICE. VISION VIDEOCON GROUP IS COMMITTED TO BRING HAPPINESS IN EVERY HOME WITH GLOBAL PRESENCE OFFERING HIGH QUALITY "e" PRODUCTS TO EASE HUMAN LIFE. PHILOSOPHY • To compete in Indian and international market with global mindset. • Maximize value for costumers, employees and share

holders. • Pursue the best in the class through management by principle. • Contribute to society through good corporate citizenship. INTIATIVES • Redesign business portfolio • Develop new strategic business • Globalization • Acquire promising differentiated technology • Cultivate high performing leadership THE OBJECTIVES & ITS RELEVANCE OBJECTIVES • LEADERSHIP THROUGH INNOVATION • LEADERSHIP THROUGH TECHNOLOGY • LEADERSHIP THROUGH QUALITY • LEADERSHIP THOUGH PERFORMANCE RELEVANCE Today’s complex business environment and hence competion makes it mandatory for a company to manage with information. The modern age will go down in the books of history as the age of information revolution. Each and every department, may it be finance, production or human resource needs inputs from the marketing and sales department.gone are the days of the shooting in the dark. Now the compant must be sure what it is forgetting and should have a fair knowledge of its market & aids trends. Today’s market is customers driven and not product driven, so the companies have to come out of its products to fit in the requirements of the customers. HOW VIDEOCON GREW? In 1985, through a technical tie-up with Toshiba Corporation of Japan, Videocon International Limited launched India's first world class Color Television. Today, Videocon International Ltd., the flagship company of the Videocon Group, is India's leading manufacturer of Consumer Electronic products. Fired by a passion for innovation, Videocon has kept pace with the changing face of technology, constantly upgrading its manufacturing facilities to incorporate advanced technology and high standards of quality into its product range, right across the spectrum. Committed to giving the consumer the best the world has to offer, Videocon has developed near zero wastage technology which helps reduce manufacturing costs by optimizing material inputs. Coupled with quality-consciousness at every stage, the consumer benefits enormously by getting premium products at affordable prices.

The company currently manufactures Color TVs, Black & White TVs and Audio products. At its modern plant at Chitegaon and Aurangabad, the Company has also undertaken complete backward integration to manufacture all critical and important components of its products, such as Electronic Tuners, FBTs, ATDMs and Deflection Yokes, thereby reducing costs, ensuring quality control and becoming vertically integrated. It has set up a unit at Gandhinagar in Gujarat for manufacturing Black & White TV picture Tubes. FIRST WITH THE BEST Continuous up gradation and indigenous manufacture has been and continues to be an integral part of the company’s philosophy. Perceived as an integral part of the company’s philosophy. Perceived as an innovator in its field Videocon has notched up many exciting first by exploring the world’s most advanced technologies. In colors TVs Videocon was the first Indian company to introduce picture in-picture turbo sound, surround sound, large screen sizes, the full flat square tube the mighty bazooka woofer and the budget line collection of an affordable yet high quality range of colour TVs for the price conscious consumer. The latest XLENT series of products from the videocon family has got the best looks in its category. RECENT ACQUISITIONS OF VIDEOCON The large acquisitions of units of two large multinationals in a matter of two weeks. A move that saw group’s total revenue nearly triple to Rs 17,000 crore from Rs 6,000 crore earlier from its four listed companies. And these acquisitions did not come on a platter. For, there was intense competition and some of the internationally big players were also in the race. Besides India, Videocon group now boasts of manufacturing operations in countries like Italy, China, Poland and Mexico. In the last week of June, the group announced acquisition of picture tube manufacturing plants of Thomson SA, a French multimedia and entertainment conglomerate, located in three countries (China, Poland and Mexico) for about Rs operations of Electrolux AB, the Swedish major, which involved taking over the three manufacturing facilities in different parts of the country making washing machines and refrigerators. The going was good for Videocon when the battle was only with domestic players. However, the entry of Korean giants like LG and Samsung in the Indian market has changed the equations. Now, the consumer electronics business has become commoditized and there is more importance to volumes. Only those who produce very large volumes can make profit. Finding it difficult to increase volumes, the company decided on a multi-brand strategy where the company managed to be associated with well known brands like Akai, Sansui, Toshiba, Kenstar, York etc and started producing marketing their products. To acquire Thomson’s manufacturing facilities in China, Poland and Mexico, Videocon has formed a 100 per cent-owned foreign holding company named Eagle Corporation which paid Euro 240 million (Rs 1,200 crore) to Thomson. Thomson in turn has invested Rs 1,200 crore in the equity shares of Videocon Industries and Videocon International. Now that Videocon International is scheduled to be merged into Videocon Industries, Thomson will have a 14 per cent stake in the merged entity. Videocon group signed an agreement with AB Electrolux to acquire the Swedish company's entire 91.85 per cent stake in Electrolux Kelvinator Ltd for Rs 500 crore Videocon will now take over the three manufacturing facilities of Electrolux Kelvinator in India at Shahjanpur (Rajasthan), Warora (Maharashtra) and Butibori (Maharashtra). Under a separate licensing agreement with AB Electrolux, the Videocon Group will distribute products under 'Electrolux' and the 'Kelvinator' brands in India. This makes Videocon India's No.1 Home Appliances Company. COLOUR TELEVISION India has a huge middle class population with rising income levels and growing aspirations.

This, along with easy availability of consumer finance, will drive the demand for colour televisions. CTV demand surged by 24 per cent Y-o-Y during JAN-MAY 2005 to cross 6 million units, and is expected to grow by 10-15 per cent in the medium term. Growth will be substantial in the flat CTV segment, which is expected to account for 35-40 per cent of CTV sales in 2005-06 (up from about 25 per cent in 2004-05). Videocon in north Delhi’s rural market has a good market share. The company’s 14” television has good sales in April –may season. The new Xlent model that has been launched is welcomed firmly by the north Delhi urban coustomers.As the market of north Delhi is more price oriented and the major population is addicted by the advertisement which is poured in all type of media, LG and Samsung has the major market share. SHARE OF VARIOUS COMPANY IN NORTH DELHI MARKET. COMPRASION OF AVG SALES IN 14’’ SEGMENT COMPARISION OF AVG SALES IN 20” SEGMENT COMPARISION OF AVG SALES IN 21” SEGMENT Findings, Analysis and Recommendations for CTV segment Findings • Most of the sales are coming from 21” flat segment and they are contributing 45% of the total sales. • LG is the leader in ctv market. • Videocon has its major sales in rural areas like bavana,kirari and narela etc • Among the major brands videocon has the lowest price. • Over all LG is contributing 35% in total sales and videocon is contributing 21% of total sales. Analysis • Most of the sales are from 21”flat segment because there is no much price difference between 20’conventional and 21’flat models and flat ctvs are the latest trend among the customers • LG is selling maximum because of there better brand promotion strategies and aggressive advertising. • Videocon has its major sales in rural areas because of its lower price and good dealer margin as mostly the rural market are dealer oriented. Recommendation • To boost the sales of videocon, the company should give more importance to after sales service as the company lacks it. • Company should concentrate on the looks and the quality of its lower models. • A scheme should be float especially for 21” models to increase the sales. INTRODUCTION TO REFRIGERATORS • Conventional refrigerators Direct Cool refrigerators cool through the direct contact of air with the cooling coils bound around the freezer. The Direct Cooling system has several drawbacks: Ice forms frequently around the cooling coil - reducing cooling efficiency and creating the need for manual defrosting additionally, also the temperature distribution is uneven within the various compartments. • Frost-Free Refrigerator The Frost-Free System is designed to overcome the drawback of conventional refrigerators. In a frost-fee refrigerator, the cooling coils are located outside the stroke area. A special cooling fan flows cold air from over the coils and into the refrigerator and freezer sections. No frost ever forms inside Frost-Free refrigerators - giving you high cooling efficiency and maximum storage space at all time. Refrigerator is now the harbinger of economic development, prosperity, affluence and a new lifestyle.

Changes in refrigerator technology in response to consumer and industry needs over the years have led to product up-gradation which has resulted in several benefits to the consumer. Compressor has been upgraded over time to become more energy efficient and provide greater cooling. Plastic lining is used inside the fridge and Polyurethane foam (PUF) is being used as an insulator. Plastic components and wire shelves are used in the interiors. They are stronger, durable and easier to clean and handle. Direct Contact Roll Bound evaporators are used which cool much faster and are much efficient. To adhere to the changing consumer needs, larger capacity, multi-door features and flexible interiors are provided in the refrigerator. Refrigerators are designed from direct cool single doors to double doors so that cold air inside the freezer is less exposed to the outside temperature. Frost Free technology is gaining popularity to solve the problem of frequently defrosting the refrigerator as well as ensuring uniform cooling around the entire refrigerator and control the air flow in the ducts. Wide range of refrigerators in size, color and design are there in the market.Clean back refrigerators are in which give a soft look.Painting process has shifted to pre coated panels that are glossy, scratch resistant and aesthetically more appealing. Non CFC refrigerators are being developed due to increasing awareness of dangers to the ozone layer. The refrigerator will be known as the Ecofrig. For the effective implementation of this technology, India became party to Montreal Protocol on Sept. 17, 1992.There is proliferation of models in the range of 200-300lt.capacity since a single bigger compressor can serve these refrigerators pretty effectively. Baby refrigerators are being introduced in the size of 100lts. and below. There is a sea change in the demand of refrigerators- from a few thousands in the fifties to 1,240,000 in early nineties to 1,890,000 in 1995 and an expected 5,800,000 by the turn of the century. This is due to the affluent culture prevailing in the urban and rural areas and a change in the consumer behavior and perception INTRODUCTION TO WASHING MACHINES There are 3 types of washing machines: • Automatic : Washing and drying is done automatically in the same unit. • Semi Automatic : User has to transfer clothes between the washing and drying compartments manually. • Washers: Low on features (no drying facility etc.). Lower ends of the market with the players essentially being in the unorganized sector. The basic difference between machine available today is whether they are top or front loading. We look at the differences There are 3 types of wash technology: Pulsator Agitator Tumble wash Down Popular in Japan Popular in USA Popular in Europe Washes by rotating a disc every 10-15 seconds. Washes by rotating a cylindrical rod every 2-3 seconds. Provides a gentler wash and uses hot water to clean. Gives a satisfactory wash. Gives powerful wash and is suited for heavier and dirtier clothes.

Closest replication of manual washing. Tech. Used by Videocon, BPL, Onida, LG etc. Technology used by Whirlpool and Hoover. Technology used by IFB and Electrolux. ? Percentage of sale of frost free refrigerator a) Summers= 80% of dealers say that the sale is more in summer. b) Festival seasons =14% of the dealers say the sale is more in festival season. c) Customers main preference while buying refrigerators d) Brand = 64% say that the customers prefer brand name e) Price = 84% of the customers look for price f) Feature = 90% see the features while buying. g) Service= 20 % see for services Promotion schemes= 12% see the promotional scheme. Word of mouth = 18 % go for word of mouth.Dealers advise= 32% go for the dealers advise. PRIMARY DATA COLLECTION AND ANALYSIS ? Percentage of Dealers keeping these brands a) LG = 80% dealer d) Videocon =24%dealers b) Samsung =80%dealers e) Kelvinator =65%dealers c) Whirlpool =84% dealers f) Godrej =30% dealers ? Rank of the brands according to the sale a) LG =2nd rank d) Videocon =6th rank b) Samsung =5th rank e) Kelvinator =4th rank c) Whirlpool =1st rank f) Godrej =3rd rank ? What percentage of customer pay by cash or cr. a) Cash =1315/25=52.6% pay by cash according to the dealers. b) Credit =1185/25=47.4% take on credit according to dealers. ? Different – different type of sale promotion by the company. a. LG=8 dealers say LG provides sales promotion to them. b. Videocon=6 dealers say Videocon provides sales promotion to them. c. Samsung= 5 dealers say Samsung provides sales promotion to them. d. Kelvinator= 2 dealers say Kelvinator provides sales promotion to them. e. Whirlpool =9 dealers say Whirlpool provides sales promotion to them. f. Godrej=4 dealers say Godrej provides sales promotion to them. ? Promotions done by the company 1. BPL and Samsung gives displays 2. Promotional schemes are taken out in festivals 3. Bio fresh LG 4. 0% finance by LG 5. Exchange offer by LG 6. Kismet offer by Samsung 7. High incentives by Samsung 8. 0% interest by Whirlpool and finance facility by Whirlpool 9. Carry back scheme whirlpool 10. Exchange offer by Whirlpool 11. Exchange offer by kelvinator 12. Pentacool new advertisement by goodrej ? Ranking of the company according to the profitability. (a) LG =1 d) Videocon=3 (b) Samsung=5 e) Kelvinator=4 (c) Whirlpool=2 f) Godrej=6 ? Percentage of customers going for the frost free refrigerators 1315/24= 54.80% ? Impact of advertisement on sale 1005/22 =45.69% ? Out of 10 the number of pre-determined buyers. 114/24= 5 buyers ? Percentage of selling a) Frost free refrigerator =1125/25 =45% b) Normal refrigerator =1375/25=55% ? Percentage of customer impressed or purchase the product due to the unique feature. a) Yes =71% b) No=25% c) No response= 4% ? The customers buy the product normally in two visits 50/24= 2 visits ? Customer of which brand have more loyalty Samsung=4th highest loyalty Lg=highest loyalty Whirlpool=2nd highest loyalty Videocon 3rd highest loyalty SALES OF VIDEOCON A.C ‘S IN NORTH DELHI A.C’S are more sold at summer’s season. The story is not that different in north Delhi also. We as a sales team of videocon had a chance to meet customers directly. Yugal electronics in rohini ran a A.C mela at the start of the month of June. All the big companies in AC section like Blue star, Carrier, General, Samsung, L.G, Voltas and Videocon participated in the mela.The dealer was direct dealer videocon,Blue star, and Voltas.All the companies had their canopies where the new model of A.C’s was displayed.

The dealers has given a full page advertisement on the news paper,because of that plenty of people came to check the new model at A.C’s. All the companies has their own special feature as the videocon has blue fines with ionizer and free gifts with each purchase. Blue star had free installing.etc.as A.C has become a necessity for a family of the increasing temperature all the companies tried to exploit the situation.all companies had their price discounted. A.C’s are purchased by a customer according to his size of the room it comes in various size and shapes, they are in .8ton,1tonand 1.5 ton split A.C,windowA.C and cassette A.C etc. FINDINGS ANALYSIS AND RECCCOMENDATION FINDINGS 1. CUSTOMERS OF NORTH DELHI ARE VERY MUCH PRICE ORIENTED. 2. THE MARKET IS TOTALLY DEALER DRIVEN 3. MOST OF THE SALE IS COMING FROM 1.5 TON A/C 4. AS VIDEOCON PROVIDE MAXIMUM MARGIN MOST OF THE SALE IS OF VIDEOCON ONLY. ANALYSIS 1.

VIDEOCON LACKS IN ITS QUALITY. 2. VIDEOCON LACKS IN AFTER SALE SERVICES. 3. BLUE STAR HAS VERY GOOD SALE SERVICE 4. THERE ARE PLENTY OF CUSTOMER WHO GOES FOR GENERAL AND HITACHI ONLY. RECCOMENDATION 1. SUPPLY SHOULD BE GIVEN PRIORITY AND SHULD BE REGULAR 2. AFTER SALE SERVICE SHOULD BE PROVIDED REGULARIT BECAUSE IT HELP IN MAKING GOOD IMPRESSION OF THE COMPANY 3 ADVERTISEMENT AND CAMPANING OF VIDEOCON A.C SHOULD BE IMPROVE IN NORTH DELHI REGION 4 MAKE CONSTANT VISIT TO VARIOUS AREAS DEPOTS AND THE PERSON SHOULD BE ONE FROM THE SENIOR LEVEL BECAUSE IT WILL GIVE THE ASSENSE OF BELONGIGNESS WHICH WILL IN RESULT HELP IN IMPROVING BRAND IMAGE.