MARKET RESEARCH & BUSINESS

DEVELOPMENT IN LATIN AMERICA, APAC

REGION FOR BLANK OPTICAL MEDIA

A Summer Project Proposal For

Post – Graduate Diploma in International Business

By
Karan Makhija

Under the guidance of

Mr. Ritesh Bhalla Dr. Suresh Ghai

Deputy Manager Director
Moser Baer, Delhi SIMSR
K J Somaiya Institute of Management Studies & Research
07th July, 2009

MARKET RESEARCH & BUSINESS

DEVELOPMENT IN LATIN AMERICA, APAC
REGION FOR BLANK OPTICAL MEDIA

By
Karan Makhija

K J Somaiya Institute of Management Studies & Research

July, 2009

2
 MARKET RESEARCH & BUSINESS
DEVELOPMENT IN LATIN AMERICA, APAC
REGION FOR BLANK OPTICAL MEDIA

By
Karan Makhija

Under the guidance of

Mr. Ritesh Bhalla Dr. Suresh Ghai

Deputy Manager Director
Moser Baer, Delhi SIMSR

K J Somaiya Institute of Management Studies & Research

3
 July, 2009

Certificate of Approval

We approve this Summer Project Report titled "Market Research & Business
Development in Latin America & APAC Region” as a certified study in
management carried out and presented in a manner satisfactory to warrant its
acceptance as a prerequisite for the award of Post-Graduate Diploma in Business
Administration/ Post Graduate Program in International Business for which it has
been submitted. It is understood that by this approval we do not necessarily endorse or
approve any statement made, opinion expressed or conclusion drawn therein but
approve the Summer Project Report only for the purpose it is submitted.

Summer Project Report Examination Committee for evaluation of Summer Project

Report

Name Signature

1. Faculty Examiner

2. PG Summer Project Co-coordinator

4
 Certificate from Summer Project Guides

This is to certify that Mr. Karan Makhija, a student of the Post Graduate Program in
International Business, has worked under our guidance and supervision. This Summer
Project Report has the requisite standard and to the best of our knowledge no part of it
has been reproduced from any other summer project, monograph, report or book.

Faculty Guide:
Designation:
SIMSR
Date:

Organizational Guide 1: Mr. Ritesh Bhalla

Designation: Deputy Manager – Intl Business
Organization: MBI International Services Pvt Ltd.
Address: 43B, Okhla Industrial Estate, New Delhi - 110020
Date: 30th June, 2009

Organizational Guide 2: Mr. Amit Sharma

Designation: Deputy Manager – Intl Business
Organization: MBI International Services Pvt Ltd.
Address: 43B, Okhla Industrial Estate, New Delhi - 110020
Date: 30th June, 2009

5
 ACKNOWLEDGEMENT

“For learning to take place with any kind of efficiency students must be motivated.
To be motivated, they must become interested. And they become interested when
they are actively working on projects which they can relate to their values and
goals in life”

I earnestly acknowledge the opportunity provided by Moser Baer. I would like to

acknowledge constant support and guidance of my project guide Mr. Ritesh
Bhalla (Deputy Manager – International Business) and Mr. Amit Sharma
(Deputy Manager - International Business), who has been instrumental in
successful completion of the project.

I also thank Dr. Suresh Ghai and Prof. C.P. Joshi, K.J. Somaiya Institute of
Management Studies & Research, for their guidance which facilitated my best
performance in the project.

Finally, I thank all those people whose silent presence gave me the right insights
to complete the project.

Karan Makhija
PGDM-IB, Roll No 28
K.J. Somaiya Institute of Management Studies & Research
Mumbai

6
 Abstract

MARKET RESEARCH & BUSINESS

DEVELOPMENT IN LATIN AMERICA, APAC
REGION FOR BLANK OPTICAL MEDIA
By
Karan Makhija

In the blank optical media business, Moser Baer has made its mark in more than 80
countries. Company’s business model is divided into two different segments. One model
is Original Equipment Manufacturer (OEM), wherein company manufactures blank
media like CD, DVD for all major global OEM brands. Under this segment company
produce CD/DVD, their packaging and every other aesthetic aspect of it as per client
requirement. The other segment is Non-OEM, under which comparatively small
distributor, reseller, whole seller, importer works. This segment includes private label
business. Company also sells media under its own brand name.

In Non-OEM segment, Moser Baer has its presence in only three Latin American
countries a:
1. Argentina
2. Brazil
3. Venezuela

Now, Company is eyeing on other countries of Latin America region for its blank optical
media business expansion, which are as:

1. Bolivia 5. Peru
2. Chile 6. Paraguay
3. Colombia 7. Suriname
4. Ecuador 8. Uruguay

7
Moser Baer plans to expand into the following regions this
year :
1. China 4. Philippines
2. Indonesia 5. Singapore
3. Malaysia 6. Thailand

As per my project, I did market analysis of optical media

market for above mentioned countries and regions. In my
research I acquired information about all possible current
optical media market, companies, importers, distributors,
retailers who deal in optical media business. Information on
major brands operating in these regions were look upon.
The sources used to gather information are:
 Indian Embassies at Latin America and APAC
countries
 Foreign Embassies at India
 Confederation of Indian Industry (CII)

 Federation of Indian Chambers of Commerce and

Industry (FICCI)
 Indian Trade Promotion Organisation (ITPO)
 Online Business Directories
 Search Engines as Google

For some above mentioned sources I contacted their

offices by visiting them or through mails and phone calls.
On the basis of information from all sources, I contacted
prospective companies to know about their current and
future requirement for Optical media. Then as per
requirement of the prospect, the offer was sent to them. All
discussions and offers send to prospects were done
keeping in mind host country’s legal and economic policy,

8
trade laws and market structure and scenario as country
like Argentina, there is safe guard measures on CD-R’s.

As per feedbacks from prospects, they are currently getting

cheap media products from Asian countries like China and
Taiwan. So, there is fierce price competition in these
countries.

INDEX

9
Acknowledgement……………………………………
…………………..…………… spandey6

Abstract……………………………………………………
………………………………. .7

About Company ………….

…………………………………….
………………………..12

History…………………………………………………….
…………………………………14

Major
Milestones……………………………………………
…………………….…….16

Major
Achievements………………………………………
…………………………..18

Products &
Services………………………………………………
……………………20

Industry
Profile…………………………………………………
……………………….26

CD R/RW Market
Trends…………………………………………………
…...........35

Future
Technologies………………………………………
………………….……….38

Project
Introduction…………………………………………
…………………….…..39

Results of discussion with Foreign Embassies at

India…….……………41

Results of discussion with Indian

Embassies……………………..………….42

10
Results of discussion with Trade
Associations…………………...………….44

Facts about Argentina Optical Media

Market………………………..............45

Facts about Brazil Optical Media

Market……………………..........................48

Facts about Venezuela Optical Media

Market…………………….................50

Findings……………………………………………………
………………………………..52

Conclusion….......................................................
........................................................55

Recommendations
…………………………………………………………
…………..56

Glossary…………………………………………………
…………………………………..58

References
…………………………………………………….
…………………………..59

LIST OF FIGURES

No. Details
Page No

1. Graphical Representation of Market Share

for Branded CD-R (In millions)… …..28
2. Graphical Representation of Market Share
for Branded CD-RW (In millions)…..30
3. Graphical Representation of Market Share
for Branded DVD-R (In millions).…..32

11
4. Graphical Representation of Market Share
for Branded DVD-RW (In millions)..34
5. Graphical Global sales for the
formats………………………………..
……………………….…37
6. Argentina OEM Market
Share…………………………………………………
…………………….46
7. Argentina Private Label Market
Share…………………………………………………..
………47
8. Brazil Local brand market
Share…………………………………………………
………………..48
9. Venezuela Manufacturers Market
Share…………………………………………………
……..50

12
 LIST OF TABLES
Table No Details
Page No

1. CD-R Global Sales

Data………………………………………………
………27
2. Global CD-R Media Company Market
Shares………………………27
3. CD-RW Global Sales
Data………………………………………………
…..29
4. Global CD-RW Media Company Market
Shares…………………...29
5. DVD-R Global Sales Data.
…………………………………………………..31
6. Global DVD-R Media Company Market
Shares……………………31
7. DVD-RW Global Sales
Data………………………………………………..
33
8. Global DVD-RW Media Company Market
Shares…………………33
9. Remarks of consultation with Foreign
Embassies at India…..41

13
10. Remarks of consultation with Indian
Embassies………………...42
11. Remarks of consultation with Trade
Associations……………...44
12. Argentina DVDR Sales
Data……………………………………………….
45
13. Argentina Private Label business Break-
Up…………………….....46
14. Argentina Local CD-R production
data………………………………47
15. Brazil local brands market
share……………………………….………48
16. Brazil major OEM brands market
share…………………………......48
17. Brazil Local Manufactures sales data…….
…………………………...49
18. Venezuela Manufacturers Market
Share…………………………….50
19. Venezuela market price for CD-R & DVD-
R……………………......51
20. Findings……………………………………………
……………………………..52

ABOUT COMPANY

14
Moser Baer, headquartered in New Delhi, is one of
India's leading technology companies. Established in
1983, the company successfully developed cutting
edge technologies to become the world's second
largest manufacturer of Optical Storage media like
CDs and DVDs. The company also emerged as the
first to market the next-generation of storage formats
like Blu-ray Discs and HD DVD. Recently, the
company has transformed itself from a single business
into a multi-technology organisation, diversifying into
exciting areas of Solar Energy, Home Entertainment
and IT Peripherals & Consumer Electronics.

Moser Baer has a presence in over 86 countries,

serviced through six marketing offices in India, the US,
Europe and Japan, and has strong tie-ups with all
major global technology players.

Moser Baer has the distinction of being preferred

supplier to all top global OEM brands. The company
stands committed to supplying highest quality fully
licensed media to its customers.

Moser Baer's products are manufactured at its three

state-of-the-art manufacturing facilities. It has over
6,000 full-time employees and multiple manufacturing
facilities in the suburbs of New Delhi.

Deepak Puri Managing director

Ratul Puri Executive Director

15
 HISTORY

Moser Baer India was founded in New Delhi in 1983

as a Time Recorder unit in technical collaboration with
Maruzen Corporation, Japan and Moser Baer
Sumiswald, Switzerland.

In 1988, Moser Baer India moved into the data storage

industry by commencing manufacturing of 5.25-inch
Floppy Diskettes. By 1993, it graduated to
manufacturing 3.5-inch Micro Floppy Diskettes (MFD).

In 1999, Moser Baer India set up a 150-million unit

capacity plant to manufacture Recordable Compact
Disks (CD-R’s) and Recordable Digital Versatile Disks
(DVD-R’s). The strategy for the optical media project
was identical to what had successfully been
implemented in the diskette business - creating a

16
facility that matched global standards in terms of size,
technology, quality, product flexibility and process
integration. The company is today the only large
Indian manufacturer of magnetic and optical media
data storage products, exporting approximately 85
percent of its production.

Since inception, Moser Baer has always endeavored

to create its space in the international market. Aiding
the company in its efforts has been a carefully-
planned and sustainable business model - low costs,
high margins, high profits, reinvestment and capacity
growth. Along the way, deep relationships have been
forged with leading OEMs, with the result that today
there are hardly any global technology brands in the
optical media segment that Moser Baer is not
associated with.

In 2006, the company announced its foray into the

Photovoltaic and Home Entertainment businesses. In
2007, the IT Peripherals and Consumer Electronics
division was formed.

17
 MAJOR ACHIEVEMENTS

 Second largest manufacturer in the world for blank

optical media

 Entered the highly exciting and emerging global

technology space of photovoltaic in mid-2005

 Foray into the fast growing Home Entertainment

Business in 2006.

 In-house developed and patented technology has

been considered as one of the four standard
media to be included in the Blu-ray Disk
Association

 The first storage media company in the world to

ship HD DVDs using a special disc structure using
common materials.

 Lowest-cost manufacturer of optical media in the

world

 Highly R&D-focused company

 OEM supplier to all the 12 leading storage media

brands in the world

18
 MOSER BAER LOCATIONS
 Corporate Headquarters: New Delhi, India

 Indian Offices: Mumbai, Kolkata, Chennai and

Bangalore

 Worldwide Offices: The Netherlands, USA (New

York and California), Japan, Middle-East

EMPLOYEE STRENGTH
Company has employee strength over 7,500

NUMBER OF PLANTS
Company has 4 plants located in India. Three plants at
Noida and one at Chennai

EXCHANGE LISTING
National Stock Exchange (NSE), the Stock Exchange,
Mumbai (BSE)

19
 FINANCIALS SUMMARY
For the financial year ending March 31, 2008
Net Sales: Rs. 18,997.9 Million
Net Turnover: Rs. 208.7 Million

PRODUCTS & SERVICES

MOSER BAER

HOME
IT & CONSUMER ELEC. STORAGE MEDIA PHOTO-VOLTAIC
ENTERTAINMENT

20
 IT & Consumer Electronics:-

1. DVD Players
2. LCD’s
3. Media Players
4. Digital photo frames
5. Multimedia speakers
6. PC Peripherals

Storage Media:-

1. DVD+R
2. DVD-R
3. DVD+RW
4. DVD-RW
5. DVD + R DL
6. Mini CD-R/DVDR
7. CD-R/RW
8. Blu-ray Disc

Photovoltaic:-

1. Crystalline Silicon Cells and Modules

2. High Concentrator and Thin Film Modules

Home Entertainment:-

1. Distribution of movies
2. Film production
3. Theatrical distribution

21
STORAGE MEDIA

Moser Baer India, the second largest manufacturers of

optical media in the world, is a technology company
focused on the preferred OEM for all 12 of the world's
optical media manufacturers and commands a 16%
development, manufacture and supply of optical
media across the globe. The company is a global
market share. With a strong R&D thrust, the company
has been able to lead the technology curve in the
optical media business. In the process, it is among the
very few Indian companies to have contributed to the
establishment of new global technology standards. As
a result of this single-minded drive and commitment,
Moser Baer became the first storage media company
in the world to ship HD DVDs.

In the Indian market, Moser Baer made its foray into

the burgeoning domestic optical storage market with
the launch of the `Moser Baer label in 2003. The
company has blazed a new trail by introducing
technologically innovative and truly world-class
product in the Indian market. Moser Baer's new range
of Gold and Platinum CD-R’s have been developed
keeping native conditions in mind in terms of
enhanced durability and resistance to both
environmental and human-induced hazards. In a
market estimated at US$ 350 million in 2005-06 -
Moser Baer is already the leader with a share of over
40%.

22
The company manufactures the entire spectrum of
optical storage media products including Recordable
Compact Discs (CD-R), Rewritable Compact Discs
(CD-RW), Recordable Digital Versatile Discs (DVD-R),
Rewritable Digital Versatile Discs (DVD-RW) and blue
laser discs (HD-DVD and Blue-ray).

Moser Baer's products are manufactured at its three

state-of-the-art manufacturing facilities that adhere to
the most stringent process and quality standards. The
company employs over 7,500 people and has an
annual production capacity of over 3 billion units.

PHOTOVOLTAIC

Moser Baer Photovoltaic aims to distinguish itself as a

significant player in the global photovoltaic market by
leveraging its high-volume manufacturing expertise
and planned investments of nearly US$ 3.2 billion in
research, development and manufacturing of products
dedicated to generating solar power.

MBPV realizes that PV markets have different needs

and emerging technologies have to be developed
today to realize the world's future energy needs. It has
already announced investments in a mix of currently
available and emerging technologies as follows:

23
 A first of its kind 80 MW, state-of-the-art, fully
automated in-line crystalline silicon cell
manufacturing facility - 40 MW already in
productions - this will be scaled up to 240 MW

 A 40 MW module manufacturing facility with

expansion plans to scale it up to 200 MW

 A 200 MW thin film module plant, capable of

producing the world's largest non-flexible thin film
modules, is under construction. Module
shipments are anticipated around mid 2008

 A high concentrator photovoltaic (CPV) module

manufacturing facility and multi-million dollar
investments in a US-based company - Sol focus,
the developer of the CPV technology in
partnership with the world renowned Palo Alto
Research Center (PARC), California. The
technology is based on gallium arsenide cells,
originally developed for harsh extra-terrestrial
solar applications and environments

 A significant equity stake in Solaria, a US-

based technology company that has developed a
unique form of low-concentration solar PV
technology. It is capable of producing power
equivalent to two to three times the power
produced by conventional PV modules, using the
same amount of silicon material

 A significant minority stake in Stion

Corporation, a nanostructures development
company based in the Silicon Valley, California,

24
 for producing extremely low-cost solar power
generating surfaces

 Acquisition of 40% equity stake in Solarvaiue,

Proizvodnja d.d, a solar grade silicon production
facility in Slovenia, to provide access and
assurance of supply to low-cost solar grade
silicon

 An R&D centre dedicated for the improvement

and rapid commercialization of solar technology
products

In addition to the above, Moser Baer Photovoltaic has

invested in strategic partnerships involving the entire
value chain, particularly for strategic sources such as
silicon ingots and wafers, glass, etc. through short-
term and long-term supply agreements.

ENTERTAINMENT

Moser Baer Entertainment offers home video titles in

various Indian languages at unmatched prices and is
also engaged in media content creation.

The company is the first to offer home videos in every

popular language of India and it is today India's largest
Home Entertainment Company. It currently offers
home video titles in Hindi, English, Tamil, Telugu,
Malayalam, Kannada, Marathi, Gujarati, and Bengali
and non-film categories. Moser Baer Entertainment
has acquired the rights for close to 10,000 titles in all
the popular languages and has already released close
to 3,000 of them in the market.

25
Headquarters in Mumbai, the company is establishing
a strong presence across the country in all major
metros as well as in smaller towns through an active
and well-organized multi-tiered channel. This move
will take advantage of the established Moser Baer
production capability and a well developed distribution
network.

The company has released video content in DVD and

Video CD formats using Moser Baer's proprietary and
patented technology that ensures the highest quality
standards and significantly reduces cost. The movie
titles come with world-class packaging. In short, Moser
Baer Entertainment is working towards providing
unprecedented value by offering high quality products
at a price that delights consumers.

IT PERIPHERALS & COMSUMER

ELECTRONICS

Moser Baer has entered into IT Peripherals and

Consumer Electronics. In IT Peripherals the product
range comprises of USB drives, Memory Cards, DVD
writers, PC Peripherals, TFT Monitors, UPS and
External Hard Drives. In the Consumer Electronics
arena, the company has come up with a product range
with medium to hi-end positioning comprising of Ultra
Advanced LCD TVs, DVD Players, Portable DVD
Players, Digital Photo Frames, Media Players and
Multimedia Speakers.

26
 INDUSTRY
PROFILE

CD-R/RW is a significant part of the recordable optical

storage industry, with overall dollar sales of $1.19
billion in 2008. Media unit sales changed by -4%, but
price degradation continued with revenue changing
-38%.

DVD recordable technology registered sales of $8.34

billion in calendar-year 2008. This figure is up
from$7.68 million of revenue in 2007. Disc media
sales grew by 12%, to 4.956 billion units. In the DVD
disc media business, revenues totaled $1.18 billion in
2008. This report reviews five DVD disc formats: DVD-
R, DVD-RW, DVD+R, DVD+RW, and DVD-RAM.
DVD-R was the most significant recordable DVD
format in 2008, with 65% of DVD recordable disc
sales, followed by DVD+R, 31%; DVD+RW, 2%; DVD-
RW, 2%; and DVD-RAM, less than 1%.

Disc media continued to decline, with the market

representing 4997.240 billion units in 2008. CD-R disc
sales continue to exceed volume of DVD discs but are

27
 not likely to hold this position much longer. Revenues
were influenced more by declining volume with
average unit pricing stabilizing,

DVD disc media is produced primarily in Asia, with

Japan and Taiwan maintaining a large share of this
business. Ritek, CMC, Optodisc, and Prodisc, all
based in Taiwan, are acting as subcontractors for a
number of international brands; Taiyo Yuden has
manufacturing in Japan; and MCC/Verbatim
continues to manufacture DVD discs, with production
in Singapore. Moser Baer maintains a significant
manufacturing presence for DVD recordable media in
its India facilities. There are smaller regional players
that have a minor influence on this market.

Entertainment levies in Europe had a major influence

on geographic sales of disc media. High levy countries
such as France, Italy, Sweden, Denmark, Austria,
Spain, and Hungary saw their official markets decline
because of this trend. Countries with low levies like
Germany, the United Kingdom, Slovakia, Monaco,
San Marino, Andorra, and Luxembourg benefited from
this trend, with traders shipping discs to high-levy
markets.

CD-R:-

Sales Data 2007 2008 2009

GLOBAL SALES (MM UNITS) 6742.412 6041.387 4997.24
% CHANGE IN SALES N.A. -10.90% -17.28%

28
 (Source: SCCG Year
End Report – 2009)

Table 1 – Global Sales Data

GLOBAL CD R MEDIA COMPANY

MARKET SHARES

2007 2008 2009

BRAND Market Units in Market Units in Market Units in
Share million Share million Share million
IMATION 9.70% 654.01396 8.60% 519.5593 7.40% 369.7958
MEMOREX 11% 741.66532 11.40 688.7181 10.80 539.7019
% %
TDK 10.70 721.43808 11.70 706.8423 9.70% 484.7323
% 4 %
SONY 11% 741.66532 11.30 682.6767 12.50 624.655
% %
MCC/VERBATIM 15.50 1045.0738 15.60 942.4564 16.80 839.5363
% 6 % %
MAXELL 9.80% 660.75637 11.10 670.594 11.10 554.6936
6 % %
HP 2.50% 168.5603 2.20% 132.9105 3% 149.9172
PHILIPS 3% 202.27236 3.00% 181.2416 2.50% 124.931
RITEK 2.70% 182.04512 2.00% 120.8277 2.70% 134.9255
4
TAIYO YUDEN 2.70% 182.04512 2.50% 151.0347 2.70% 134.9255
4
OTHERS 10.80 728.18049 13.00 785.3803 9.90% 494.7268
% 6 %
(Source: SCCG Year
End Report – 2009)

Table 2 – Tabular format for Branded CD-R

29
 1200

1000

800

600

400

200
0
2007 2008 2009

IMATION 654.01396 519.5593 369.7958

MEMOREX 741.66532 688.7181 539.7019
TDK 721.438084 706.8423 484.7323
SONY 741.66532 682.6767 624.655
MCC/VERBATIM 1045.07386 942.4564 839.5363
MAXELL 660.756376 670.594 554.6936

(Source: SCCG Year

End Report – 2009)

Fig 1 – Graphical Representation of Market Share for

Branded CD-R (In millions)

Observations:
• The overall market for the CD-R kept on decreasing
• Verbatim had the highest and increasing share
• The shares for Verbatim increased due to decrease in
the overall sales

30
 CD RW:-

Sales Data 2007 2008 2009

GLOBAL SLAES(MM UNITS) 237.54 177.834 130.705

% CHANGE IN SALES N.A. -25.13% -26.50%

(Source: SCCG Year
End Report – 2009)

Table 3 – Global Sales Data

GLOBAL CD-RW MEDIA COMPANY MARKET

SHARES

2007 2008 2009

BRAND Market Units in Market Units in Market Units in
Share million Share million Share million
TDK 13.10 31.11774 12.20 21.69575 10.60 13.85473
% % %
IMATION 17.80 42.28212 11.60 20.62874 13% 16.99165
% %
MEMOREX 15.90 37.76886 19.30 34.32196 15.50 20.25928
% % %
MAXELL 12.30 29.21742 12.40 22.05142 16.10 21.04351
% % %
SONY 10.40 24.70416 11.80 20.98441 12.70 16.59954
% % %
PHILIPS 2.90% 6.88866 3% 5.33502 1.80% 2.35269
MCC/VERBATIM 19.20 45.60768 20.50 36.45597 22.10 28.88581

31
 % % %
FUJI 0.80% 1.90032 2.70% 4.801518 1.50% 1.960575
OTHERS 5% 11.877 6.40% 11.38138 6.80% 8.88794
(Source: SCCG Year
End Report – 2009)

Table 4 - Tabular format for Branded CD-RW

50
45
40
35
30
25
20
15
10
5
0
2007 2008 2009

TDK 31.11774 21.69575 13.85473

IMATION 42.28212 20.62874 16.99165

MEMOREX 37.76886 34.32196 20.25928

MAXELL 29.21742 22.05142 21.04351

SONY 24.70416 20.98441 16.59954

PHILIPS 6.88866 5.33502 2.35269

MCC/VERBATIM 45.60768 36.45597 28.88581

(Source: SCCG Year

End Report – 2009)

Fig 2 - Graphical Representation of Market Share for

Branded CD-RW (In Millions)

Observations:

• The overall market for CD-RW declined

• MCC/Verbatim had the highest market share

32
 • Verbatim increased its share in the declining
market
• The shares increased due to the decline in the
overall sales world wide

DVD R:-

Sales Data 2007 2008 2009

GLOBAL SALES(MM UNITS) 4035.461 4433.613 4729.385

% CHANGE IN SLAES N.A 9.80% 6.67%

(Source: SCCG Year
End Report – 2009)

Table 5 – Global Sales Data

GLOBAL DVD R SHARES

2007 2008 2009

BRAND Market Units in Market Market Units in
Share million Share Share million
IMATION 5.80% 234.05673 5.50% 243.8487 4.90% 231.7399
8
MEMOREX 9% 363.19149 10.10 447.7949 9.80% 463.4797
%

33
TDK 13.30 536.71631 13.80 611.8386 13.80 652.6551
% 3 % %
MAXELL 8.20% 330.90780 9.40% 416.7596 8.60% 406.7271
2
MCC/VERBATIM 21.70 875.69503 23.80 1055.2 22.80 1078.3
% 7 % %
SONY 10.60 427.75886 11.20 496.5647 12.10 572.2556
% 6 % %
PHILIPS 3.20% 129.13475 3.20% 141.8756 2% 94.5877
2
HP 2.90% 117.02836 2% 88.67226 2.60% 122.964
9
RITEK 2.50% 100.88652 2.10% 93.10587 1.90% 89.85832
5
FUJI 3.60% 145.27659 2.50% 110.8403 2% 94.5877
6
OTHERS 19.20 774.80851 16.40 727.1125 19.40 917.5007
% 2 % %
(Source: SCCG Year
End Report – 2009)

Table 6 - Tabular format for Branded DVD-R

34
 1200

1000

800

600

400

200

0
2007 2008 2009

IMATION 234.056738 243.8487 231.7399

MEMOREX 363.19149 447.7949 463.4797
TDK 536.716313 611.8386 652.6551
MAXELL 330.907802 416.7596 406.7271
MCC/VERBATIM 875.695037 1055.2 1078.3
SONY 427.758866 496.5647 572.2556
PHILIPS 129.134752 141.8756 94.5877

(Source: SCCG Year

End Report – 2009)

Fig 3 - Graphical Representation of Market Share for

Branded DVD – R (In Millions)

Observations:

• The global market for DVD R increased with

Verbatim being the market leader with an
approximate share of 22%

35
 DVD RW:-

Sales Data 2007 2008 2009

GLOBAL SALES(MM UNITS) 295.755 304.397 226.473

%CHANGE IN SALES N.A 2.90% -25.50%

(Source: SCCG Year
End Report – 2009s)

Table 7 – Global Sales Data

GLOBAL DVD RW SHARES

2007 2008 2009

BRAND Market Units in Market Units in Market Units in
Share million Share million Share million
IMATION 7.30% 21.590115 6.40% 19.48141 6.30% 14.2678
TDK 16.10% 47.616555 13.50% 41.0936 12.90% 29.21502
MEMOREX 4.90% 14.491995 8.40% 25.56935 7.80% 17.66489
MAXELL 20% 59.151 19.90% 60.575 21.40% 48.46522
MCC/VERBATIM 15.60% 46.13778 16.10% 49.00792 17.70% 40.08572
SONY 13.60% 40.22268 14.90% 45.35515 15.20% 34.4239
PHILIPS 6.80% 20.11134 5.90% 17.95942 5.50% 12.45602
FUJI 2.30% 6.802365 4.70% 14.30666 3.30% 7.473609
MATSUSHITA 6.30% 18.632565 4.80% 14.61106 4.80% 10.8707
OTHERS 7% 20.70285 5.40% 16.43744 4.90% 11.09718
(Source: SCCG
Year End Report – 2009)

Table 8 - Tabular format for Branded DVD-RW

36
 70

60

50

40

30

20

10
0
2007 2008 2009

IMATION 21.590115 19.48141 14.2678

TDK 47.616555 41.0936 29.21502
MEMOREX 14.491995 25.56935 17.66489
MAXELL 59.151 60.575 48.46522
MCC/VERBATIM 46.13778 49.00792 40.08572
SONY 40.22268 45.35515 34.4239
PHILIPS 20.11134 17.95942 12.45602

(Source: SCCG Year

End Report – 2009)

Fig 4 - Graphical Representation of Market Share for

Branded DVD – RW (In millions)

37
 CD R/RW MARKET TRENDS

It is now estimated that there is 28% more supply than

demand for CD-R discs. This appears to be a
relatively good supply/demand balance; the market
has seen pricing stabilize as it has approached cost.
For manufacturers paying royalties to Philips and
other companies, profits are limited at best. It is
expected that manufacturers will decrease CD-R
capacity in 2009, hoping that pricing will improve to
allow profitability. Taiwan dominates manufacturing for
CD-R discs, now representing 62% of global capacity.
India is an important participant, with Moser Baer
maintaining an additional 19%.

CD-recordable technology revenue changed by -13%,

to $257 million in Q4. Media Revenues showed a
significant decrease as writer and media sales
declined. Quarterly CD Writer unit sales changed by
-50%, with declines in all channels. Writer revenue
growth changed by -32%; higher unit pricing in combo
drives and a growing share of this product category in
the writer segment compensated for some of the
declines in the half-high format, but the shift to DVD
writers was driving this trend. Media dominated sales,
representing 82% of revenue.

Global CD recordable disc sales changed by -4% from

1252.846 million units to 1205.198 million units on a
quarter-to-quarter basis. This decline was primarily
due to the gradual market shift towards DVD media

38
and alternate storage being used for applications like
music. CD-R discs represented 1179.320 million units
of this volume and prices showed a modest decline
during the quarter. CD-RW media sales continued to
be limited, representing 2.15% of total unit sales. Disc
manufacturers are retiring CD-R capacity and in some
cases converting production lines to DVD recordable
capacity. Several companies are further reducing
manufacturing capacity by stopping less-productive
lines. There is adequate CD-R capacity to support
industry needs for the future.

CD-R/RW:

CD-R/RW represented the significant part of the

recordable media, although the overall sales for the
CD-R/ RW decreased. Disc media sales continued to
decline with the market representing 6742.412 million
units in 2007, 6041.387 million units in 2007 and
4997.240 million units in the year 2008. Considering
the change in the previous three years i.e. from 2006-
2008, the supply demand gap has increased from 2%
in 2006 to 28% in 2008. This is because the markets
mature and application for copying CD became
saturated. Some of this decline is influenced by the
acceptance of the high storage capacity products like
DVD in the market. In the addition alternate
technologies such as flash (MP3 players) and online

39
(music and video distribution, photo storage) also
influenced the trend.
Disc manufacturers are retiring CD-R
capacity and in some cases converting production
lines to DVD recordable capacity. Several companies
are further reducing manufacturing capacity by
stopping less-productive lines. There is adequate CD-
R capacity to support industry needs for the future.

CD-RW does not form the significant part of the CD

recordable media. The sales for CD-RW decreased,
it decreased by 25.13% (177.834) in 2007 from 237.54
mn in 2006. In 2008 it came down to 130.705 mn
(26.50%).

DVD-R/RW:

The sales for DVD-R increased in the year 2007 by

9.80% from the previous year and 6.67% in the year
2008. The sales for DVD R which comes in two
formats (DVD-R/+R) increased due to high
compatibility of either versions with DVD players, the
prime playback medium for this product. DVD R media
consumption was initially driven by the transfer of
camcorder tapes. There is a huge installed base of
camcorder tapes. This might suggest an opportunity to
quickly convert this quantity to DVD. In actual practice,
the conversion will be fairly gradual, and will relate to a
user’s need to convert from magnetic media, which is
perceived as deteriorating, to DVD. Some of this

40
activity will be influenced by media cost, which initially
will be quite high.

DVD RW which also comes in two formats (DVD-RW/

+RW) has lower levels of compatibility with the DVD
players. Global sales for DVD RW increased by 2.90%
in 2008 but decreased by 25.50% in 2009. Global
sales for the formats are as shown below:

8000
6000
4000
2000
0
2007 2008 2009
CD-R 6742.412 6041.387 4997.24
CD-RW 237.54 177.834 130.705
DVD-R 4035.461 4433.613 4729.385
DVD-RW 295.755 304.397 226.473

(Source: SCCG Year End Report – 2009)

Fig 5 - Graphical Global sales for the formats

FUTURE TECHNOLOGIES

41
Blu-ray was announced in late 2002. This technology
is supported by a group of nine companies (the “Blu-
ray Founders”) working on standards. With capacity of
25 gigabytes (50 GB on a double-sided disc), the main
application appears to be supporting high-definition
broadcast copying. Considering the development
cycle and limited need for storing high definition
broadcast content (which is only a factor in Japan),
this market might mature some years in the future.

In September 2002, Sony announced a “DVR-Blue”

prototype consumer recorder with capacities of 23.3
GB, 25 GB, and 27 GB. Sony did not specify when
these devices would be available on a commercial
basis, but small volumes started to ship in Japan in
2007.
The recorder has capabilities such as
receiving/recording programs of digital satellite
broadcasting and recording the current ground-based
TV broadcasting.
Toshiba introduced the HD DVD (previously known as
AOD), which also featured blue laser technology. This
technology was capable of storing 15 GB (30 GB on a
double-sided disc). The HD DVD format was
discontinued in early 2008.

The Blu-ray drive manufacturers have come out with a

ROM version and are actively working with movie
studios and software vendors to gain acceptance in
these markets. (SCCG published a report titled Blu-

42
ray and HD DVD Disc Technologies: Pursuit of a
New Standard, which provides more detail on this
market.)

PROJECT INTRODUCTION

The project is based on analysis of current optical

media market and prospecting of companies in Latin
America and APAC region in the sphere of optical
media business.

OBJECTIVE:

• Market analysis and assessment about blank

optical media business in Latin America and
APAC region
• Prospecting companies which are importers or
reseller or duplicators of optical media in Latin
America and APAC region
• Preparing marketing plan for prospective and
interested companies as per country legal and
economic framework

43
RESEARCH METHODOLOGY:

The research methodology used is primary and

secondary research. All the information and data
represented in the project have been collected from
various sources as:

 Questionnaire and depth- Interviews

 Indian Embassies at Latin America and APAC
countries
 Foreign Embassies at India
 Confederation of Indian Industry (CII)
 Federation of Indian Chambers of Commerce
and Industry (FICCI)
 Indian Trade Promotion Organisation (ITPO)
 Online Business Directories such as Alibaba,
Tradekey etc.
 Online search engine

The market taken for the study is the Latin America

and APAC region.

Under Latin America following countries have been

covered:
1. Argentina 7. Peru
2. Bolivia 8. Paraguay
3. Brazil 9. Suriname
4. Chile 10. Uruguay
5. Colombia 11. Venezuela
6. Ecuador

44
Under APAC region following countries have been
covered:
1. China
2. Thailand
3. Malaysia
4. Singapore
5. Indonesia
6. Philippines

This research project has helped the company in

establishing the market size, existing players,
opportunities and prospects in order to expand
business in these markets/segments and what all is
needed to have an initial breakthrough.

It also gives a complete understanding on the

movement of goods and competitor performance in
these specific regions based on discussions with
prospective clients.

Also it has helped in analyzing performance of

different brands like Imation/Verbatim/TDK vis-à-vis
smaller brands like Princo, Multilaser, Elgin etc in
specific regions.

Results of discussion with Foreign Embassies

at India:

45
S. No Embassy Of Person Remarks
1 URUGUAY - No information received from embassy

2 PERU - Information received from embassy

3 ECUADOR Ms. Leticia No information received from embassy

4 VENEZUELA - No information received from embassy

5 ARGENTINA - No information received from embassy

6 BRAZIL - Information received from embassy

7 SURINAME Ms. Vyanti Mala No information received from embassy

Ram Ratan
Srivastav
8 KENYA - No information received from embassy

Table 9 – Remarks of consultation with Foreign

Embassies at India

46
Results of discussion with Indian Embassies
at Latin America & APAC region:

S. NO EMBASSY AT PERSON CALL REMARKS

1 Ecuador - Not able to contact embassy

2 Argentina Mr. No information received from embassy

Sanjeev
Kumar
Babu
3 Brazil Ms. Leticia Information received from Embassy about
certain prospects and other information
sources

4 Chile - Embassy people have contacted our agent

based in Chile

5 Indonesia Ms. Information received from embassy

Pratibha

6 Paraguay - Not able to contact embassy

7 Peru - Information received from embassy

8 Singapore - Information received from Embassy about

certain prospects and other information
sources
9 Thailand Mr. Information received from Embassy about
Purshottam certain prospects and other information
sources
10 Venezuela - Not able to contact embassy

11 Colombia - No information received from embassy

47
12 Kuala Lumpur - Information received from Embassy about
certain prospects and other information
sources

13 China Mr. Amit Information received from Embassy about

( 65321856 certain prospects and other information
) sources
14 Bolivia - Not able to contact embassy
Honorary
Consulate
General Of
India, La Paz
15 Suriname - Not able to contact embassy

Table 10 – Remarks of consultation with Indian

Embassies

48
 Results of discussion with Trade
Associations:

S.
Association Remarks
No
1 ITPO Visited ITPO. No information received.

2 NASSCOM No information received from NASSCOM

3 CII Visited CII. No information received.

4 FICCI No information received from FICCI

Table 11 – Remarks of consultation with Trade

Associations

49
 Facts about Argentina Optical Media
Market

1. Market Size: 12mn DVD-R/ month and 13 mn

CD-R/month

2. OEM Brands represent 70% & Local Private Labels

have 30% market share

3. There are safeguard measures against India on

CD-R

4. Major OEM Brands with DVD-R Market share are

as follows:

Sales (1st Jul' 07 - 31st Jul' 08)

DVDRs
Brands Mkt Share Distributors
(mn pcs)
Verbatim 52.774 52% Econ Office - GTC, Imtermaco, Elit, Stenfar, Etertin, D
Imation 14.641 14% Util- of, Stylus, Casa Sermiento
Memorex 15.68 15% Audioptica, Util-Of, Stylus, Aircomputers
TDK 2.348 2% Cura Y, Audioptica
Sony 7.875 8% Intcomex, Visuar SRL, Gasei SA. Util - Of, American Im
Pleomax 1.119 1% GTC Ribbon
BenQ 0.596 1% Simon and Arrington, Air Computers
Melody 0.378 0% Anadolu
Philips 6.291 6% Diatricomp, Simon and Arrington
Total 101.702 100%

Table 12 – Argentina OEM - DVDR Sales Data

50
 OEM Mkt Share

Philips, 6%
Melody, 0%
BenQ, 1%

Pleomax, 1%
Sony, 8%

TDK, 2%

Memorex, 15%
Verbatim, 52%

Imation, 14%

Fig6 – Argentina OEM Market Share

4. Major Private Labels with DVD-R Market share are

as follows:

Sales (1st Jul' 07 - 31st Jul' 08)

DVDRs Mkt
Brands Distributors
(mn pcs) Share
Akira 2.865 14% Impact Argentina
Teltron 6.414 32% Teltron SA
Cromax 2.956 15% Elit
Conception 7.032 35% Super CD Virgen
Storax 1.086 5% Districomp
Total 20.353 100%

Table 13 – Argentina Non-OEM Private Label

business Break-Up

51
 Pvt Label - Mkt Share

Storax, 5% Akira , 14%

Conception,
35%

Teltron , 32%

Cromax , 15%

Fig 7 – Argentina Private Label Market Share

5. Local Production

CDR Capa
(mn pcs/a)
Teltron 50
Laser Disc 36

Table 14 – Argentina Local CD-R production data

6. Market Segments
 Duplicators  Retail
(Piracy) is 70% Customers is
30%

7. Distribution
 Small Retailers:  Office
90% Stationery
 Retail Chains: Shops: 3%
2%  Open Street -
 IT Shops: 5% Sell Pirated
Movies & music

52
8. Political Situation and Economy of Argentina is
not stable. Companies want to wait for Political
stabilization. Also they wait for Exchange Rate
stabilization. Inflation is around 24% per year.
Government is regulating all the industries and trying
to minimize imports. At this point of time companies
are hesitant to start a new business.
Facts about Brazil Optical Media Market

1. Total Brazilian Optical Media Market size is 100-

120mn pieces/month with CD-R share of 40% and
DVD-R share of 60%
2. Piracy is the biggest problem for Government and
brands
3. Local Brands represent 60-70% of the total market
and OEMs Brands represent 30-40%.
4. Major Local Brands with market share are as
follows:

Videolar 25-30%
Elgin 7%
Multilaser 8%
Printlife 8%
Maxprint 7%
Others (S-Mac, CIS etc.) 5-10%

Table 15 – Brazil local brands market share

53
 Mkt Share - Local Brands
Others, 10%

Maxprint, 7%
Videolar , 30%

Printlife, 8%

Multilaser, 8%
Elgin, 7%

Fig 8 – Brazil Local brand market share

5. Major OEM Brands with Market Share are as

follows:
Sony 10%
Maxell 8%
Imation 8%
Others (TDK, Samsung, Ridata,Kodak, LG, etc.) 4%

Table 16 – Brazil major OEM brands market share

Sony, Imation and Maxell are doing business with the

help of their Distributors. Sony has become very
serious for Brazilian market by giving volume targets
to their distributors and reducing the price difference
between Sony branded media and other brands.

6. Local Manufacturers

Capa (mn pcs/m)

Videolar 38
Infosmart 6
Novodisc 1.5
Cooperdisc 1

Table 17 – Brazil Local Manufactures sales data

54
Videolar is the biggest manufacturer in Brazil. They
are also producing CD-R for SONY in Brazil. Their
DVD-R quality has not been approved by SONY.

7. Market Segments:
Duplication: 60% Sales through
Distributors/Wholesalers/Retailers Retail/Corporate
Customers: 40% Sales through small Retailers and
Big Retail Chains

Facts about Venezuela Optical Media

Market

1. Total Media Market size is expected to be 50-70mn

pieces/month
2. CD-R market share is around 30% and DVDD-R
share is around 70%
3. Biggest market segment (around 70-80%) is
Piracy. Government has not taken any strict measures
to curb this problem. Pirated content sells on streets.

55
4. Manufacturer's/OEM Brands and Local Brands are
present in the ratio of 50:50 approx. There are around
40 Local Brands e.g. BBB, Banana, Huskee, Global
Data etc...
5. Within Manufacturer's and OEM Brands, Market
Share is as follows:

Princo 40%
Gigastorage 20%
Ridata 10%
Smartbuy 10%
Others 20%

Table 18 – Venezuela Manufacturers Market Share

Mkt Share - OEM Brands

Others
20%

Princo
40%
Smartbuy
10%

Ridata
10%

Gigastorag
e
20%

Fig 9 – Venezuela Manufacturers Market Share

7. Local Manufacturers

Global Data - Capacity around 6mn

pieces/month
Cendis - (Owned by Government)

56
8. Market Segments
Duplication: 70-80% Sales through
Distributors/Wholesalers/Retailers)
Retail/Corporate Customers: 20-30% Sales
through small Retailers and Big Retail Chains

9. 10. Sales Channels: The traditional sales

channel of Distributors --> Resellers --> End
Customer is also there along with direct dealing
between manufacturer and retailer

10. Important Cities for Media Business are

Caracas, Mara cay, Valencia, Maraca Ibo,
Barquisimento. 40% of the media business
happens in Caracas - the Capital of Venezuela

11. Import Duty on media is 29% on CIF Value

12. Free Trade Zones: Margarita Island, Puerto

Fijo

57
Findings:

As per primary level prospecting, 32 companies are sorted

out which are interested in dealing with Moser Baer for
optical media business. These companies are listed below:

Company Contact Country Source Remarks

Cabot Col Sa Ramiro Colombia Embassy Introductory mail sent
Velasquez
Norena
Didactica- Jaramillo Isabel Colombia Embassy Introductory mail sent
Recursos Aguirrezabal De
Educativos
Ltda
Favaltec Ltda Valderrama Colombia Embassy Introductory mail sent
Morales Fabio
Ledakon S A Akerman Colombia Embassy Introductory mail sent
Lederman Larry

Memoria Digital Jaime Colombia Embassy Introductory mail sent

SA Hernandez

Sepulveda Ursula Piedad Colombia Embassy Introductory mail sent

Ursula Piedad Cecilia
Cecilia Y/O Sepulveda
Sumimagen
Aires Sa Erika Sarante Colombia Embassy Introductory mail sent
Aerovias De Bahamon
Integracion
Regional S A
Asinal Ltda Acevedo Diaz Colombia Embassy Introductory mail sent
Belisario
Avon Colombia Sigilfredo Torres Colombia Embassy Introductory mail faxed on
Ltda Velez 005743567947
Brigthstar Alvaro Rojas Colombia Embassy Introductory mail sent
Colombia Ltda Bocherith

Franchise Ricardo Sanchez Colombia Embassy Introductory mail sent

System De Col Gil
Ltda Y Cia Sca
Fsc Ltda
Gonzalez Jorge Ivan Colombia Embassy Introductory mail sent
Garcia S A- Gonzalez
890925810

58
Insitel Ltda Julian Alberto Colombia Embassy Introductory mail sent
Ingenieria De Clavijo Gonzalez
Sistemas
Telematicos
Ltda
Invs Ajoveco S Palacios Colombia Embassy Introductory mail sent
A-860010268 Verswyvel Juan
Manuel
Labs Baxter S Victor Pedroza / Colombia Embassy Introductory mail sent
A-890300292 Eduardo Jose
Yalde
Lanzetta Rengifo Naranjo Colombia Embassy Introductory mail sent
Rengifo Y Cia Maria Victoria
Ltda
Nexsys De Gilbert Isaac Colombia Embassy Introductory mail sent
Colombia S A Chalem
Choueka
Suministros Parsons Garcia Colombia Embassy Introductory mail sent
Indls De Col Jairo Samuel
Ltda Sumincol
Impresistem - Colombia Alibaba Introductory mail sent

Vs Data Carlos Santos Brazil Authorized Given contact details to Mr. Ritesh
Dealer

Redosul Mr. Murilo Brazil Alibaba Given contact details to Mr. Ritesh
Brindes Salustiano
(Manager)
Rama Global Mr. Joelson Brazil Alibaba Given contact details to Mr. Ritesh
Trading Souza
Premium Mr. Mauro Brazil Embassy Given contact details to Mr. Ritesh
Materiais Para
Escritório Ltda.
Tech Data Peru Gustavo Guillen Peru Alibaba Concerned person not available

Hyh Servicios Mr. Hector Peru Alibaba Introductory mail sent

Integrales Huertas (General
S.R.L Manager)
Sml Imports Mr. Rafael Peru Alibaba Introductory mail sent
Solutions Salinas
Grupo Venesys Jonathan De Venezuela Authorized Got country manager number:
Martinez Dealer 0058 42433202010 but not able to
contact on this number

Hj Ltda. - Chile Authorized Introductory mail sent

Dealer
WYF Mr. Andres Chile Alibaba Given contact details to Mr. Ritesh
Poblete
Pendrives.Cl Mr. Jorge Chile Alibaba Given contact details to Mr. Ritesh
Frugone

59
Libreria Brasil Mr. Jorge Chile Trade Key Not interested
Kasaneva

Table 20 - Findings

60
Conclusion:

• In and around Latin America there is less

number of manufacturing units. To name few:
Teltron and Laser Disc at Argentina; Videolar,
Infosmart, Novodisc at Brazil and Cendis at
Venezuela

• OEM brands have their warehouses and

distribution channels existent in these
countries. To name few, Verbatim has its
warehouse in many countries of Latin America,
HP has its warehouse in Brazil

• Other than international brands, there are some

private labels such as Multi Laser, Elgin,
Maxlife etc. in Brazil ; Akira, Teltron , Cromax
etc. in Argentina also existent in the market and
capture a substantial market share

• Many Latin American countries such as

Argentina. Chile, Uruguay etc. is slow to adapt
to the latest in optical media, and not a highly
quality conscious market. Where as Brazilian
market has demand of all sort of media

• APAC market is mid level market, with all sorts

of media in demand

61
 • Negligible Moser Baer Optical Media presence
in APAC region due to cheap media
manufacturing units in and around China &
Taiwan. Also freight cost is much higher in
comparison to cost occurring on purchasing
media from APAC based manufacturing
countries

• In Latin American countries such as Argentina,

Brazil etc. lot of trading of optical media is done
in illegal way such as smuggling it from North
American countries. As in Argentina there is
safeguard measures on CDR’s, so CDR’s are
imported in the country through illegal means

Recommendations:

• Latin American market is mainly Spanish

based, so language is one of the barriers.
Moser Baer can overcome this barrier in certain
ways by hiring person who is proficient in
speaking Spanish and have good selling skills.
Also, this gap can be fulfilled by appointing
agents in Latin America who are into either
same or relevant line of business. It would
serve three main purposes, which are as:
o These agents would act as interface
between Moser Baer and buyer
o Local person will be much aware of local
legal & economic framework and would
also know better way of reaching

62
 prospects. Agent would have better
know- how of the market, buyers status
etc.
o With the local presence in these areas,
buyers can contact Moser Baer for
media themselves and they would have
local point of contact for correspondence

• Moser Baer can manufacture low cost media

for these regions as these regions are highly
price sensitive. So, company should focus on
low cost differentiation as these regions have
huge demand for media such as Brazil have
100-120million pieces per month etc. These
markets are price driven markets.

• Moser Baer should focus on catering to the

private label business, which would in turn yield
higher volumes. For countries like Brazil with 60
– 70% private label business.

• Moser Baer can introduce its own brand in

Brazilian market. As per 2008 data, 60-70%
media sales in Brazil is represented by Private
Labels and rest is from OEM players. This
shows that there is scope for new brands or
non-famous brands. So, with aggressive
marketing techniques i.e. focus on pricing,
creating brand awareness and positioning it as
a mid segment brand which offers value for
money, Moser Baer can gain a foothold in this

63
 low priced and competitive market. Once
established in the market our brand will surely
command a premium

• Moser Baer should try to tie up with local

manufactures supplying to Private Labels of
that country and having less production
capacity of media. Company can help ride
through marketing and distribution channel of
such company by manufacturing and supplying
product for them. As that company will already
be settled in the country, will also have all the
resources in place and know – how of the
market. So, manufacturing for them will be
comparatively an easy ride than to develop own
distribution network

• Moser Baer should try to participate in fairs,

conclaves or business sessions, organized in
these regions through various trade
associations like CII, FICCI etc.

64
Glossary:

1. CD-R: A CD-R (Compact Disc-

Recordable) is a variation of
the Compact Disc invented
by Philips and Sony. CD-R is a Write
Once Read Many (WORM) optical
medium, though the whole disk does not
have to be entirely written in the same
session
2. CD-RW: Compact Disc Rewritable (CD-
RW) is a rewritable optical disc format.
Known as CD-Erasable (CD-E) during its
development, CD-RW was introduced in
1997, and was preceded by the never
officially released CD-MO in 1988
3. DVD-R: DVD-R is a Digital Versatile Disc
recordable format. A DVD-R typically has
a storage capacity of 4.71 GB (or
4.38GiB), although the capacity of the
original standard developed
by Pioneer was 3.95 GB (3.68 GiB).
4. DVD-RW: A DVD-RW disc is a Digital
Versatile Disc rewritable optical disc with
equal storage capacity to a DVD-R,
typically 4.7 GB.[1]The format was
developed by Pioneer in November 1999
and has been approved by the DVD

65
 Forum. Unlike DVD-RAM, it is playable in
about 75% of conventional DVD players
5. BDR: It is known as Blu-Ray Disc. Blu-ray
Disc (also known as Blu-ray or BD) is
an optical disc storage medium
designed/created by Sony to supersede
the standard DVD format. Its main uses
are for storing Play station 3 games,
high-definition video and data storage
with 50GB per disc. The disc has the
same physical dimensions as
standard DVDs and CDs
6. Mini DVD: Mini DVD is an 80 mm
diameter DVD disc. In normal recording
(standard DVD quality), it holds 30
minutes of video or 1.4 GB of data

References:

Websites
1. http://www.moserbaer.com
2. http://www.equitymaster.com
3. www.alibaba.com
4. www.tradekey.com
5. www.kompass.com

Report
1. SCCG – 2008

66
 2. International Intellectual Property Alliance 2008
Special 301 Report

Organizations
1. Indian Embassies at Latin America and APAC
countries
2. Foreign Embassies of Latin America and APAC
countries at India
3. Confederation of Indian Industry (CII)
4. Federation of Indian Chambers of Commerce
and Industry (FICCI)
5. Indian Trade Promotion Organization (ITPO)

Reports
1. SCCG – 2008

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