1

Table of Contents:

• Introduction of Videocon Industries

• Indian Television Industry

 Product Life Cycle of CTV in India

 Porter’s Model

• Videocon in Indian Television Industry

 Revenue Mix

 Performance measures

 STP

 4 P’s

• Competitors Strategies

• Recommendations

A Lifestyle Statement

2
Videocon Industries

More to come | More to create

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. Keep watching.

Corporate Profile

The Videocon group emerges as a USD 2.5 Billion global conglomerate

continuing to set trends in every sphere of its activities from a conference room
sized assembly line in 1979. It started life in 1984 as a branded manufacturer of
consumer durables. In 1995, it ventured in to contract manufacturing and then
oil. The consumer electronics and oil businesses were separate entities with
separate balance sheets.

Things changed in 2005 when Videocon merged its oil subsidiary, petrocon, in
to the flagship VIL (Videocon Industries Limited). Now it has a balance sheet
that has the combined number both consumer electronics as well as oil. It is
clear that this was primarily done to use oil revenues to shore up the sagging
consumer electronics business.

Nevertheless, it is unusual. This move has raised questions about whether

Videocon is trying out too many things. An indication of market sentiment can
be got from the fact that its market cap of Rs 9,855 crores is less than even its
estimated sales (put out by domestic brokerages) of Rs 11,444 crores in FY06
(it has an October-September financial calendar). One of the world’s largest and
3
most acknowledged CPT manufacturer in the world, the group is forging ahead
with production and development of latest technologies like Super True Flat
CPT, Slim CPT, Extra Slim CPT and HD 16:9 format CPT.

Some Big Steps

4
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 and its 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
5
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 international technology to suit Indian needs,
and crafting it to improve the quality of life – as million of satisfied customers
will agree.

The new symbol of Videocon asserts its passion for global impact, and the two
‘E’s on either side represent the Group’s 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.
Vision and Mission:

To delight and deliver beyond expectation through ingenious strategy, intrepid

entrepreneurship, improved technology, innovative products, insightful
marketing and inspired thinking about the future.”

Videocon would like to derive optimum value out of CRT assets. In case of TVs
Videocon intend to be present in the global brand space through Daewoo
acquisition and build on strong domestic position especially in the emerging
market of the world where the demand is being lead by increasing propensity of
erstwhile non consumer to consume.
Videocon also intend to build further on the OEM route. It already has its
presence in the European market through operation base at Anagni in Italy,
where Videocon will sell 1.5 mn TV sets of Plasma LCD and CRTs
Technologies to complete its TV vertical, Videocon will be present in the FPD
(Front panel Display ) space, by setting a plasma panel line in Italy.

2010 Road map

6
A newly formulated ‘2010 Road Map’ outlines the group’s broad strategy.
Besides aspiring to be among the top five in both branded consumer electronics
and contract manufacturing in the world by 2010, it also wants to control one-
third of the branded domestic market.

INDIAN TELEVISION INDUSTRY

India is having 120 million households those are enjoying the benefits of
Television sets. Indian Television Market is emerging as a key driver in global
market both as a consumer & manufacturer of Televisions.
Total Units sold- 12.5 million (2006).
Total sales of $ 2.5 billion (2006).
Sales are expected to reach $ 4 billion by 2011 at a compound growth rate of
9.6%.
The market is expected to grow to 18.7 million units by 2011 at a compound
annual growth rate of 9%.

Global Players in Indian TV Industry

1. LG
2. Videocon
3. Sony
4. Samsung
5. Onida
6. Philips
7
In Indian industry the Korean companies are clearly dominating the market.

PRODUCT LIFE CYCLE (PLC) of the Color TV

The PLC for television has a “SCALLOPED PATTERN”

Introduction Stage (1982 – 1983) – The Color TV was introduced.

Growth Stage (1984 to 1986)-The industry was at the nascent stage where the
Black & White Television was pre-dominant. However the sale of CTV
increased.

Maturity Stage (1986 to 1989)

The industry went into the maturity stage with lot of domestic competition
coming in the market.

Decline Stage (1989-1991)

Penetration levels into rural India were at low levels. Urban segment purely
dominated CTV market while there was a huge untapped market.

Re-introduction Stage: Entry of MNC’s Introduction1992 to 1994

8
The MNC’s entered into India resulting in a greater degree of penetration. They
brought lot of products having a lot of features.

Growth (1995 to 1999) - The CTV Market grew at a very fast rate. The demand
for CTV s increased Manifold with aggressive marketing techniques, resulting
in increased penetration and cut throat competition between domestic players
and MNC’s. The growing demand for flat CTVs was propelled by the declining
price differentials between FCTV and CCTV segments.

Maturity Stage (2000 to 2002-03) - The market of FCTV and CCTV were
consolidating. After 2002-03- Cycle Continues the Product Life Cycle has been
going through a lot of Stages where before the decline of the product, a newer
version has been launched in the market and the PLC has gone through the
phases again. These innovations include LCD, Plasma in the past. Now HDTV
has also been launched and that has led to a rising PLC.

Porter’s Model Potential entrants

(Threat of
Entry)

Industry
Suppliers Buyers
Competetitors (Buyer
(Supplier
(Segment rivalry) Power)
Power)

9
Substitutes
(Threat of
substitutes)
In order to understand the industry better, we analyze the industry using Porter’s
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 isn’t very easy. One of the most important features
needed is a good distribution system which isn’t 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

10
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 consumer’s 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.

11
- 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.

VIDEOCON'S STRATEGIES

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
12
players promise to deliver a few more years of enterprising developments in the
Indian TV market.

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.

Videocon's revenue mix

Performance Measures
13
 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

14
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.
15
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 infact 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.
16
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.

4P’s
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.

17
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)

18
Plasma LCD Slim Flat Conventional

50”PDP 42” LCD 29” slim 29” flat 21” FFST

42”PDP 32” LCD 21” slim 21” flat 20” conv
26” LCD 15” flat 14” conv
20” LCD
19” LCD

Length
2 5 2 3 3

In the product mix of Videocon, it is having 37 different models, which gives

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
19
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
20
1500cd/m2 Brightness
HDMI Compatible
3-D Video Noise Reduction

LCD

The flab’s 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 Transistor–Liquid 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.

21
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

22
Conventional TV

21" FFST
20" CONV
14" CONV

Pricing
The pricing of the Videocon’s 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.
23
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's.

Brand ambassador
Shahrukh Khan
M S Dhoni
Total spending of 80 crores in 2006 on advertisements.( 35 crores for CTV)
Sponsorship

Videocon is inspired heavily by the uplifting values perpetuated by sports. Its

ability to draw people together irrespective of differences in race, gender,
religion and country. Unity of spirit and purpose is ultimately what builds
bridges between diverse cultures. This is the core belief of a group that today
has operations spread over a cross-cultural milieu worldwide. Also, at the heart
of sports is fair play, a virtue which enjoys exalted status among values
cherished by Videocon.

The group has been deeply involved in supporting sports. Its sponsorship of
cricketing events across the globe underlies its commitment and passion for
sports as well as its goal to connect with a global audience.

It is a matter of pride that Videocon's Audio Visual products entertain

enthusiasts and fans passionate about watching sports worldwide.
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.

Their famous tag line

“One of the only companies in the world to convert sand to TV”

24
 Competitor’s strategies

Differentiation Strategy adopted by other players:

LEADER-LG

Product localization is a key strategy used by LG.

* LG came out with Hindi and regional language menus on its TV.
* Introduced the low-priced “Cineplus” and “Sampoorna” range for the rural
markets.
* LG was the first brand to introduce gaming in CTVs. In continuation of its
association with cricket, LG introduced the cricket game in CTVs.

CHALLENGERS- SAMSUNG

Samsung considers ‘After Sales Service’ as a key differentiator for Samsung

products. In order to deliver prompt and easily accessible service, Samsung
India has set up a widespread network of company owned as well as Authorized
Service Centers to service its customers. The Samsung Service Plazas, as the
Company owned Service Centers are called, are a first in the industry.

FOLLOWERS- ONIDA AND PHILIPS

Onida

25
Onida’s differentiation strategy is based on its brand based advertising rather
than feature based advertising. They used its brand mascot ‘The Onida Devil’
and its punch line “Neighbor’s Envy Owner’s Pride” to create Brand awareness
of their product.

Where its competitors were focusing on advertising of the features of their

products, Onida has concentrated only on their Brand. The ‘Devil’ helped Onida
gain substantial market share and brand recall among the customers.

Philips

Philips Differentiation Strategy is their “Simplicity Led Design”. Philips

believes in the unity of form and function. Their technology is easy to use. In
Philips’s world, they are trying to improve the consumer’s life.

Philips is known for its consumer insight and empathy. Therefore, their
differentiation strategy includes making technology simple to use.

NICHER-SONY

Sony is focusing on providing quality products to its customers and

differentiating itself from the other players.

The positioning strategy adopted by other players:

Leader-LG
It is positioned as a premium brand that pioneers the most innovative
technologies in India.

Challengers - Samsung
Samsung has positioned itself as a brand that brings communication,
entertainment and information in easy to use digital device.

26
Nicher- Sony
Sony Positioned as a premium product giving the best quality to cater to the
demands of its high end customers.

Recommendations (Strategies)
Product Strategy

1. Stop all curved CPT production

2. Shift focus to LCD CTVs; target: by December 2007.
3. Launch Slim 21” 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 Thomson’s 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 Videocon’s CTV
division, invest for new models, introduction of new technologies.
27
 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 Videocon’s 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

28
 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.
New Product Line

Introduce CCTVs as it has the demand in several areas like restaurants, airport,
railways stations,banks, hospitals, shopping malls, company offices.

“A lifestyle statement”

People do not see the television as a mere electronic device providing sight &
sound. It has now become an entertainment experience and a lifestyle statement
that people are willing to pay for. Since consumers are ready to shell out money
for a lavish entertainment experience, there is today no limit to the number
facilities that a television can envision of offering. From in built recording to
internet facilities to supreme sound etc. The opportunity for this industry lies in
coming up with new features to the conventional CTV. There is therefore lot of
scope for growth and innovation.

29
30