CONTENTS 1.Executive Summary 2 2.Acknowledgement 3 3.Methodology 5 4. Television Industry in India 8 5.Company Background (LG) 11 6.Distribution network 13 7.

LG Channel Partners 14 8.Channel Conflicts And Corporations 18 9.Company Background (Sony) 19 10.Distribution Network 22 11.Sony Channel Partners 23 12.Channel Conflicts And Corporations 25 13.Findings 26 14.Conclusions 37 15. ANNEXURE- 1 38 16. ANNEXURE- 2 41 17.ANNEXURE- 3 44

Videocon -

Multi Brand Strategy

Marketing of two or more mutually competing products in a given market or differentmarkets under differ

ent brand names by the same company

The basket of brands can be

Brands built internally Acquired brands

Brands through joint ventures Gain of marketing rights

Why companies opt for a multi brand strategy?

To differentiate it s offering to diff erent market segments

To get maximum mileage out of established brands that it has acquired To protect the interest of the mother brand

To create internal competition to promote efficiency To increase sales further without sacrificing on profitabil ity

Advantages
Enables to meet the needs of different groups of customers and to react to the specific requirements

To attract and catch brand switchers Can function as S.B.U's which act as profit centers Failed brands do not affect image of other

existing brands Brands are created to protect the parent brand Possibility of entering new product lines

Results in increase in shelf space Higher penetration Avoid dependence on few brands Better economies of scale

Disadvantages
May lead to cannibalization of brands in a given market Investing in different brands results in excessive cash flows

Cost and time for promoting a new brand is high, so needs patience Brands will not be able to capitalize from a strong corporate name

An acquired brand may not fit culturally in the new brand architecture

Situation midNineties

Videocon was the No 1 brand Increasing competition expected from new entrants, especially those who were Globally strong

Ready to invest in Indian market I ncreasingly difficult for Videocon to increase market share

Was the brand strong enough to withstand the onslaught of MNC BRANDS?

Videocon group goes for Multi Brand Strategy

To protect mother brand To increase overall market share for the group In-turn result in more efficient utilisation of group

s manufacturing facilities

How is Multi Brand Strategy helping Videocon group?

Helps Videocon group avoid dependence on few brands Helps Videocon group avoid dependence on few dealers

More efficient utilisation of manufacturing capacities Better economies of scale Failed brands in a market do not

affect the image of other existing brands of Videocon group in that market As product holding period reduces, the different brands of Videocon group try

toaddress markets from various angles to attract and maintain the many Replacement customers Career path opportunities across Videocon groupCan help

Videocon group achieve 100% penetration with at least 2 of our brandspresent in each outlet

Will Multi Branding Strategy for Videocon group

help Videocon Brand?

Bigness of the group has a positive rub off on the mother brand Videocon

Economies of scale advantage also flow to Videocon: Media costs Service Logistics

Manufacturing E ngages competition to fight on several fronts Strong competitive challenge within the group motivates

Videocon to keep on growing Investment and focus on mother brand to drive its growth

Brand Basket

Tie ups with Global Leaders

Partner P roduct Nature Of Tie

Up

Toshiba Corp Colour TV Technical Collaboration Brand

Arrangement Samsung Electronics Fly Back Transformers, Tuners Technical Support

Matsushita Electric Washing Machine Technical Collaboration Matsushita Electric Air Conditione r

Design & Drawing Matsushita Electric Refrigerator Design & Drawing Sansui Electric Co. Ltd

Audio Products and Colour TV ODM for Indian Market Techneglas Glass Shell

Technical Collaboration Akai Audio Products and Colour TV ODM for Indian Market

Hyundai Colour TV ODM for Indian Market Electrolux AB Sweden

Refrigerator, Air Conditioner andWashing Machine 1. ODM & Indian Market 2. Sourcing of components

for Global Market 3.ODM for Global market

VIDEOCON SWOT
STRENGTH

Technolog y:
Global acquisition of Thomson and technological tie ups with majors like Toshiba,Panasonic, Matsushita, Samsung & others

have given access to patents and a strong R&D base Global quality certification like CE, UL, VDE, SASO and IRAM help in better

quality perception and global expansion

Market:
Domestic leadership through multi brand strategy.

80% plus penetration at dealer level. Closest to market and for the market - strategic manufacturing locations i.e. Mexico NAFTA, Italy

EU, Oman GCC, Po land East Europe, India SAARC and China. Wide and well established service network providing

efficient after sales service.

Cost:
High degree of backward integration in house production of components critical to

quality and cost. Manufacturing facilities in strategic locations with tax and cost benefits.

Global capacities provide economies of scale. Glass CRT CTV offers unique synergy in global CTV business.

People:

Young and vibrant employees with 70% of the force below the age of 30. Cordial relationship with trade unions No

man days lost due to labour unrest. Multi skilled workforce More than 50% staffs are graduates/post graduates

WEAKNESS
Multi brand strategy is diffused in certain areas. Most product development cycles start from R&D and not from consumer insights.

Long business cycle leads to greater need of working capital. Quality perception not on par with multinationals like Sony

Inadequate MIS due to complexity of the business structure. Multiple factories and brands burden logi stic support.

OPPORTUNIT Y

Technology:
Existing global facilities provide basic infrastructure to expand to FPD

manufacturing. Start rotary compressor production for air conditioner.

Market:
New global footprints provide

access to large international markets in major product categories. Huge potential considering the present low

domestic penetration levels. Large integrated components and product manufacturing facilities provide huge OEM potential.

Cost:
New facilities in low cost areas with tax benefits .New facilities at international locations with minimal CAPEX due to existing infrastructure.

Rationalizing common services such as logistics, warehouse and after sales services .

People:

Recent M&A activities have led to growth in brand / Corporate image and greater interest of all present and future stake holders globally.

Restructuring of the organization in a professional manner to create a competitive and challenging environment

THREAT

Growth of alternative technologies. Continuous price pressures driven by capacity adjustment time lag.

Margins in glass/CRT based business may come under pressure if alternative technologies are available at a price factor of 1.5 times.

Strong competition from existing players in China. Building client confidence regarding quality standards may take some time.

Brand Strategies
The year 2006 comes at a time when Videocon is fresh from its acquisition of Thomson scolour picture tube

business worldwide, making it the first truly Indian multinational. Thecompany now has access to the finest technologies in the world, due to the

continuousinnovati on by its R&D centres across the world & stateof the -art manufacturing facilities in

France, Italy, Poland, Mexico, China & India. As a result many innovative new products have been launched, from the Slim&Trim TV which is 42%

slimmer than a normal 21 flat TV; tothe International Series of TVs, to the sleek range of Konzerv washing machines which have a unique water -

saving function. This trend is seen to continue throughout 2006 as well. Videocon s wide range of products has always focused on giving

consumers the very best in stylish and technologically advanced products, from Colour Televisions, DVD Players, Home Theatres, Washing Machines,

Refrigerators and Air Conditioners. The m odern -day consumer is aware of the latest technological advancements in electronics & appliances, and the

optionsavailable to him. With the advent of cable television, a window to the world has opened up in the average Indian s living room, making him more

aware. As a result his expectations havealso increased. Videocon s endeavor is to not only fulfil the needs of the customer but makeavailable to him a wide array of

options and new technologies that are suited to his needs.With international products like Slim TVs, Plasma TVs, the global International Seriesrange and

much more, the company now has more to offer to the discerning consumer who appreciates style & comfort in life. In this era of information technology, when

the entire world is networked, and the concept of a global village exists now much more than ever before, no company can survive on such alarge scale if it does not integrate

its processes. Videocon was one of the first companies torealize the importance of information technology for global scale efficiency. As early

as theyear 2000, it implemented the SAP R3 4.0B System. In 2005, Videocon became the firstcompany in India to implement the mySAP Business Suite, which consists of

variouscomponents like ERP 2004, CRM 4.0 (Consumer Relationship Management), BIW 3.5(Business Information Warehousing), and EP 6.0 (Enterprise

Portal). The implementation of mySAP in Videocon was one of the few implementations that was monitored and supporteddirectly by SAP AG,

Germany. Videocon is rampup customer for SAP, one of the few clients who will receive all updates in the system as and when they happen.

25 The SAP ERP 2004 business solution has resulted in integration of processes to strengthenresource s, networks & infrastructure

within the company. It has enabled Videocon toproactively respond to market dynamics, maintain control over costs, increase productivity,and make the company

more agile and better prepared for the future. The various moduleslike Sales & Distribution, CRM, Logistics, Plant Management, Production Planning,

MaterialManageme nt, Quality Management, Finance, Human Capital, Business InformationWareh ousing and Enterprise Portal have all integrated

Videocon into one cohesive unit, functioning at maximum efficiency, geared t o face the future. As a first step towards reaching out to rural areas,

2005 saw the launch of a nationwideseries of road shows in the B & C class towns of India, called Videocon Lifestyle Expo 2005.

These generated tremendous interest, showcasing Videocon s product range superiority andbringing the Videocon experience close to the consumers

homes. In 2005, the Lifestyle Expowas held in 53 locations across the country, and over 1.2 lakh people visited them to look atthe latest technologies on offer, experience the Videocon

products hands-on, and beentertained in a variety of other ways. The 2006 edition of the Lifestyle Expo has just begun,and is expected to surpass last year s Expo in terms of

popularity; footfall & sales, helping Videocon increase its penetration throughout the country. 2005 was a good year for Videocon in terms of sales. Overall sales in

colour televisions were12, 28,533 units from January to December 2005. In home appliances, Videocon sold 3,13,463 washing machines, 3, 94,784

refrigerators, and around 1.2 lakh air conditioners. TheMultie & Maxie range of washing machines were particularly successful. Besides thenormally good seasons like Onam

in Kerala, Durga Puja in the East & Diwali all over thecountry, Videocon launched several off-season offers like HumTum Offer, Heads YouWin Tails You Win Offer etc.,

which did much to boost the sales and resulted in a good year for the brand In 2005, Videocon s strong corporate campaign in the press and on TV has awoken the

countr y to the fact that Videocon is an emerging global powerhouse in their own backyard.The Gayatri Mantra television commercial, for

example won much acclaim and was loved by all. Even as it looks in the direction of global supremacy, Videocon has always kept its finger onthe pulse

of India. And knowing that Cricket & Bollywood are the two things that never failto arouse the passions of Indians, Videocon maintains a strong

association with these two, 26 and will continue to do so in 2006. With the support of the biggest contemporary star,

Shahrukh Khan, Videocon continues to reach out to the masses. The last 4 years have seen Videocon sponsor the matches played by the Indian cricket team,having

won the exclusive rights from BCCI along with TVS Motors & Pepsi. In 2006, Videocon will continue to make its presence felt in Cricket in a big

way. Videocon is now the sponsor of the West Bengal Ranji team. It has also established the Videocon School of Cricket in Calcutta, in partnership with

Sourav Ganguly, which recognises & grooms talent for the future generations of Indian cricket. But one of the biggest coups Videocon has pulled off in cricket

recently is signing on one of India s hottest young cricketing talents the exciting Mahindra Singh Dhoni, who will no w endorse Videocon products.

According to Mr. Sunil Tandon, VP Marketing, Videocon, Withhis swashbuckling style & hunger for success, Dhoni epitomises the spirit of Videocon. Hisyouthfulness

and determination will have a positive rub-off on the brand and increase itsappeal among the younger generation.In 2006, Videocon plans to continue its strong focus on flat TVs.

The fast-growing 29inch segment will be an area of focus. Besides, with the Slim&Trim range set to expand into newmodels in the 21 & 29 segment,

and also into Home Theatres & DVD Players, the customer will be offered a wide range of choices in this sleek range. In home appliances, the focus will remain

on the unique water-saving Konzerv range of fullyautomatic washing machines, and Videocon will also concentrate on Frost -

Free Refrigerators, the fastest-growing category in refrigerators. 2006 will also see Videocon launching itsmicrowave ovens in a big way, with a wide range

spreading across all segments. In airconditioners, Videocon, on the strength of the patent for its technology for energy efficiency(40% less energy

consumption), plans to launch a new range, with focus on the split AC market.

Research Methodology

and Research Design

Proposed Title of The Study:

Critical Study of Advertising Effectiveness

and its impact onBrand Positioning of Videocon Industries

Broad Overview of the Study:
In this study our emphasis will be

on various advertisements flashed in electronic and print Medias about Videocon International and its brands .in following manner

1. We are going to study the awareness created by these advertisements 2. Recalling patterns of these advertisements

3. Recalling factors (means which content of the advertisement is mostly recalled by the viewer) it also c alled as content study.

4. Its impact on buyer s perception in that particular segment 5. Shift in buying behavior 6. Its impact on overall brand positioning of

Videocon International.

Objectives of the Study:

1. To study the advertising effectiveness of

various advertisements of Videocon in sampling area. 2. To study the recalling pattern in the sampling area

about the content of Videocon advertisements. 3. To study the buying behavior shift if exist because of

advertisement content. 4. To gather the information that helps to reduce the uncertainty and risk associated with

advertising. And suggesting measures. 5. To study the impact of these advertisements in

brand positioning of Videocon.

Methodology to be followed:
This is typical research where we are going to use some advertising effectiveness measuring

techniques like 1. Content research 2. Copy testing

3. competitive activity research 4. positioning research ( Awareness and

attitude tracking research ) interpreting in 100%. The sample area will be Aurangabad City.

For secondary data some literature study will be For this all simple technique of Questionnaire method will be used and a stratified sampling

method will be used for the sample selection. Sample will of minimum 100 and not more that 200 and will be carried out.

Collected data will be analyzed by help of simple statistical techniques and will be interpreted in graphical explorations.

Hypothesis to be tested: ( If Possible )

H o - Videocon Internationals Advertisements are having direct impact on brand position ing

of Videocon as Indian Multinational in the Aurangabad City

Limitations of the Study:

1.

Sample size we have selected for the research is very less while calculating the advertising effectiveness. 2.

Time limit is major constrain 3. Consumers and Viewers are very reluctant in providing relevant information.

4. Brand positioning studies are having diversified attributes which can not be tested in single short period study

Theoretical Background Advertising effectiveness & Brand Positioning

Introduction The mea ning of brands

Brands are a means of differentiating a company s products and

services from those of its competitors. There is plenty of evidence to prove that customers will pay a substantial price premium for

agood brand and remain loyal to that brand. It is important, therefore, to understand whatbrands are and why they are important.

Macdonald sums this up nicely in the following quote emphasizing the importance of brands: it is not factories that make profits, but relationships

with customers, and it is company and brand names which secure those relationships Businesses that invest in and sustain leading brands prosper

whereas those that fail are left tofight for the lower profits available in commodity markets What is a brand? One definition of a brand is as follows:

A name, term, sign, symbol or design, or a combination of these, that is intended to identify the goods and services of one business or group of businesses and

to differentiate them from those of competitors . Interbrand a leading branding consultancy -

define a brand in this way: A mixture of tangible and intangible attributes symbolised in a trademark, which, i f properly

managed, creates influence and generates value . Three other important terms relating to brands should be defined at this stage: Brand equity

Brand equity refers to the value of a brand. Brand equity is based on the extent to which the brand h as high brand loyalty, name

awareness, perceived quality and strong productassociations . Brand equity also includes other intangible assets such as patents, trademarks

and channel relationships. Brand image Brand image refers to the set of beliefs tha

t customers hold about a particular brand. These are important to develop well since a negative brand image can be very difficult to shake off.

Brand extension Brand extension refers to the use of a successful brand name to launch a new or modifiedprodu ct in a new market. Virgin is perhaps the best example of

how brand extension can beapplied into quite diverse and distinct markets. Brands and products Brands are rarely developed in

isolation. They normally fall within a business product line or produc t group. A product line is a group of brands

that are closely related in terms of their functions and thebenefits they provide. A good example would be the range of desktop and laptop computersmanufact ured by Dell.

A product mix relates to the total set of brands marketed by a business. A product mix could,therefore, contain several or many product lines.

The width of the product mix can bemeasured by the number of product lines that a business offers. For a good example, visit the web site of Hewlett

-Packard ( HP ) . HP has a broad productmix that covers many segments of the personal and business computing market. How many separate product lines can you spot

from their web site? Managing brands is a key part of the product strategy of any business, particularly thoseoperating in

highly competitive consumer markets.