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We would like to acknowledge and extend our heartfelt gratitude to the following persons who have made the completion of this Project possible-

Our Teacher, MAYANK DEDHIA Sir- who believed in us and had faith and confidence that we will persevere in carrying out the given assignment with absolute facts,

Our seniors, who had provided us with the much needed motivation and reason for believing in the subject of the project,

Our colleagues, whose constant enthusiasm kept us going,

Last but not the least; we would like to thank our families and friends who provided the necessary support.

Brief 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.

Today the group operates through 4 key sectors: 1. Consumer durable 2. Thomson CPT 3. CRT glass 4. Oil and gas Consumer Electronics, Home Appliances & Compressor manufacturing in India We enjoy a pre-eminent position in terms of sales and customer satisfaction in many of our consumer products like Colour Televisions, Washing Machines, Air Conditioners, Refrigerators, Microwave ovens and many other home appliances, selling them through a Multi-Brand strategy with the largest sales and service network in India. Our compressor manufacturing technology in Bangalore further supports refrigerator manufacturing. Display industry and its components With the Thomson acquisition Videocon has emerged as one of the largest Colour Picture tube manufacturers in the world operating in 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 INSTITUTE OF MANAGEMENT STUDIES Colour 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

Corporate Governance Company's Philosophy on Code of Governance: The company's philosophy on corporate governance enshrines the goal of achieving the highest levels of transparency, accountability and equity in all spheres of its operations and in all its dealing with the shareholders, employees, the government and other parties. The company believes in the philosophy on code of corporate

governance, which provides a structure by which the rights and responsibility of different constituents, such as the board, employees and shareholders are carved out. In carrying out this, it is ensured that the company\'s objectives are well defined and performance against those objectives are adequately measured and monitored. Corporate governance is considered as an important tool for shareholders rotection and maximization of their long -term values. The cardinal principal such as accountability, responsibility, transparency and fair disclosure serve as the means for achieving this. R&D The company gives utmost importance to the R & D activities, which are carried out, at in-house R & D center. The company carries on new innovations in product development, cost reduction, quality improvement, process implementations, process controls.

1) Specific areas in which R & D is carried out by the company During the year, the company has carried out Research and Development in the following areas. Home theaters -High-end models and HTIB Models. Larger Screen Television i.e.32 Inch and 38inch. True Flat Televisions Plasma Televisions Cosmetic design and new out look to the TVs Manufacturing of components for CTV, Refrigerators and Air conditioners. Efforts to reduce power consumption of all its final products. 2) Benefits derived as a result of the above R& D. The company has derived the following benefits as a result of the Research and Development: Development of new design in product and launch of various new models. Able to compete with the foreign players in the Indian Markets by cost reductions and offering innovation features and to maintain market leadership in Television under Videocon umbrella.

Increase in productivity. Reduction in power consumption of some of the products. 3) Future Plans of action In the coming days company is aiming to achieve development in the following areas through Research & Development: Manufacturing of components for consumer Electronics Products. Multimedia TV. Plasma Televisions. Launching of New Brands & Sub-brands under Videocon umbrella. Composite Home Entertainment system with internet adaptability. To work on better features, better quality & improved reliability with reduced/low prices. Your company always attempts to use the latest and advanced technology in production process. Keeping pace with the technological developments, the company keeps on adding sophisticated equipments with focus on automation to minimize manual intervention in the manufacturing process thereby ensuring quality of the final products. Board Of Directors Mr. Venugopal N Dhoot Mr. Pradeepkumar N Dhoot Mr. K C Srivastava Mr. Kuldeep Kumar Drabu Mr. Satyapal Talwar Mr. S Padmanabhan Maj. Gen. S C N Jatar Mr. Arun L Bongirwar


Videocon are manufacturing the following products. They are dealing in four sectors and they are as follows: Consumer Durables: Consumer Durables by Videocon have a very eminent position in Indian market and has the largest sale and service market in India. It has an internal manufacturing unit for compressors in Bangalore. Consumer Durables is the major group of Videocon and it follows the strategy of multi-brand and multi-price. It is manufacturing goods with price range and brands. Videocon markets Sansui, Akai, and Toshiba besides its own brand, Videocon and the combined Videocon International market share are 16.8% by volume. There are number of Consumer Durables by India manufactured by Videocon as: Color television: Videocon offers wide range of television such as LED TV, LCD TV, Ultra Slim TV, Flat TV, Conventional TV, and Digital Photo Frame.

y y y y

Washing Machines: Videocon offers wide range of washing machines such as fully automatic and semi automatic washing machines. Fully automatic further offers front loading and top loading. Air Conditioners: Videocon offers split AC. This has two units, one is indoor unit and the other is outdoor unit. Refrigerators: Videocon offers both frost free refrigerators as well as direct cool refrigerators. Microwave Ovens: Videocon offers solo, grill, and convection microwave ovens. Mobile Phones: Videocon offers wide range of phones such as Android phones, touch phones, multimedia phones, camera phones, music phones, GSM-CDMA phones, Qwerty phones, Videocon 2Dh: It is one of the best services on satellite television. It provides many packages like gold, diamond, and much more. It offers mainly three types of satellite products such as Satellite DVD, LCD, and satellite box.

Home Theater: Home theater offered by Videocon includes features such as compatibility with DVD, TV, PC, VCD, Walky, and audio system, full function remote control, individual channel removal control, super bass system, LED display, output power 5500 W, wooden finish as well as tower type front speakers. DVD Players: DVD player offered by Videocon have revolutionized home entertainment. Videocon offers Single Disc DVD player, Multi Disc DVD player, and VCR / DVD Combo players.

Thompson CPT (Color Picture Tube): Videocon is one of the largest Color Picture Tube (CPT) manufacturers in the world after acquiring Thompson in 2005. Slim CPT, Extra Slim CPT and High Definition CPT with 16:9 formats are manufactured in the plants located in Mexico, Italy, Poland and China. It is also a leading corporation in the manufacturing of Color Picture Tube Glass and has plants in India and Poland. CRT Glass: CRT glass segment of Videocon includes Narmada glass that offers glass products for TV panel and funnels. Oil and Gas: Oil and Gas segment is of interest to Videocon and it produces 7% of all oil produced in the private segment in India. Having the Rawa oil field by Videocon along with others in the market has a very low operating cost and generates 50,000 barrels of oil per day.

What is LED ? A light-emitting diode (LED) is a semiconductor light source.[3] LEDs are used as indicator lamps in many devices and are increasingly used for other lighting. Introduced as a practical electronic component in 1962,[4] early LEDs emitted lowintensity red light, but modern versions are available across the visible, ultraviolet, and infrared wavelengths, with very high brightness. When a light-emitting diode is forward-biased (switched on), electrons are able to recombine with electron holes within the device, releasing energy in the form of photons. This effect is called electroluminescence and the color of the light (corresponding to the energy of the photon) is determined by the energy gap of the semiconductor. LEDs are often small in area (less than 1 mm2), and integrated optical components may be used to shape its radiation pattern.[5] LEDs present many advantages over incandescent light sources including lower energy consumption, longer lifetime, improved robustness, smaller size, and faster switching. LEDs powerful enough for room lighting are relatively expensive and require more precise current and heat management than compact fluorescent lamp sources of comparable output. Light-emitting diodes are used in applications as diverse as replacements for aviation lighting, automotive lighting (in particular brake lamps, turn signals, and indicators) as well as in traffic signals. LEDs have allowed new text, video displays, and sensors to be developed, while their high switching rates are also useful in advanced communications technology. Infrared LEDs are also used in the remote control units of many commercial products including televisions, DVD players, and other domestic appliances.


1. Videocon VPL32HBZ LED TV Price List: Rs. 49,990/y 32 Inches y HD Ready (1366768 pixels) y Very Slim (22mm) y 3D Noise reduction y 3D Combo Filter y Dynamic Backlight y HDMI 1.3 y USB 2.0 y Environment Friendly y SRS Trusurround Sound y 5 Preset Sound Modes

2. Videocon VPL42FBZ LED TV Price in India Rs. 99,990/y y y y y y y y y

42 Inches 1,00,000 : 1 Super Contrast Ratio Full HD (19201080 pixels) 1080p Razor sleek finish (22mm) 3D Noise reduction Dynamic Backlight HDMI 1.3 USB 2.0 3D Comb Filter

3. Videocon V55563DZ LED TV Price in India Rs. 1,49,000/y y y y y 55 Inches 7,00,000 : 1 Super Contrast Ratio Full HD (19201080 pixels) 1080p 2GB USB Drive 3D Noise reduction

y y y y

Dynamic Backlight HDMI 1.4 USB 2.0(1080P WITH DIVX) 3D Comb Filter

4. Videocon V55551FZ LED TV Price in India Rs.1,80,000/y y y y y y 55 Inches Response time is 6ms Full HD (19201080 pixels) 1080p USB Port HDMI Input 1year warranty period

5. Videocon V42531FG LED TV Price in India Rs.69,990/y 42 Inches y Full HD (19201080 pixels) 1080p y Response time is 5ms y USB Port y HDMI Input y 1year warranty period y 3D Noise reduction y Eco Vision

6. Videocon V42531BG LED TV Price in India Rs. 64,990/y 42 Inches y Full HD (19201080 pixels) 1080p y Response time is 5ms y 1,00,000 : 1 Super Contrast Ratio y Bluetooth y USB Port y HDMI Input y 1year warranty period y 3D Noise reduction y Eco Vision

7. Videocon V32531FG LED TV Price in India Rs. 64,990/y 32 Inches y Full HD (19201080 pixels) 1080p y Response time is 5ms y 1,00,000 : 1 Super Contrast Ratio y Bluetooth y USB Port y HDMI Input 3 y 1year warranty period y 3D Noise reduction y Eco Vision

8. Videocon V32541FG LED TV Price in India Rs. 50,490/y y y y y y y y y 32 Inches Full HD (19201080 pixels) 1080p 1,00,000 : 1 Super Contrast Ratio USB Port HDMI Input 3 1year warranty period 3D Noise reduction Eco Vision


Product promotion strategy refers to making the product popular among the consumers and raising their sales through suitable measures. Every company is interested in promotion as its profit is directly to the volume of sales. Promotional strategy is designed as to inform, persuade and encourage people to buy specific product of the company. Product promotion is done through advertising, personal selling, public relations publicity, sales promotion and online promotion. 1. Advertising: It is communicating with the audience through non- personal approach. The audience can identify the source of the message and the company that paid for the media. In case of Videocon, Advertising on t.v , print media and Brand ambassadors like Shahrukh khan and MS Dhoni are being roped in to promote the products of the company 2. Personal selling: It is a personal presentation of the information and the product to prospective buyers by a sales person of the company. It is a costly medium. In case of Videocon, word of mouth, dealer recommendations, free service camps and promotional campaigns is organised to target specific areas. 3. Sales promotion: It communicates with the audience through a variety of non-personal media to supplement advertising. The audience can clearly identify the source of messages because the company pays for its delivery. In case of Videocon, it provides free schemes, Scratch cards, discount coupons, gift with purchase of product, money back offers, on the spot cash discounts , exchange offers , festive discounts and contests.

4. Publicity: It communicates with the audience through personal or non-personal media which is not paid for. The audience is likely to consider the media rather than the company as the source of message. It is less promotional. In case of Videocon, The company organise many events to promote the products like youth awards, celebrities night. 5. Public relation: It is planned communication by a company to influence the attitude and opinion of a specific group such as customers, government agency, stockholders or special interest group. Public relation is used through sponsorship of charity programmes, annual reports and news letters. 6. Online promotion: Nowadays consumers spend lot of time on internet. Many companies are shifting to online advertising in order to build brands and to attract visitors to their websites. Online advertising appears while consumers are surfing the web including display ads, search- related ads, online clasified and so on. Other forms of online promotions include content sponsorships, alliances and affiliate programmes and viral advertising. Strategies implemented by Videocon: a. Going global: the way they are choosing to go global: through the OEM (original equipment manufacturer) route. Dictating the shift were new business realities - the march of the Korean chaebols in the global branded durables game and Videocon's own eroding market share at home. It's a conscious decision; otherwise they would have been extinct. (It can be done by taking the brand global or go in for intermediaries. Since building a brand abroad was tough, they decided to go in for intermediaries). b. Joint ventures:

In the past they went for Joint Ventures like: a. Akai-Videocon b. Sansui-Videocon c. Toshiba-Videocon

c. Multi branding activities: As a core brand, it did not have any brands at the top end or at the flanks to ward off the thrust from the Sonys, the Panasonics and the VFM Korean range of products. So Videocon developed Bazooka as a top-of-the-line product to spearhead a frontal assault. Toshiba too was introduced to reinforce this strategy to take on all comers. Private was introduced as a subbrand and gave tremendous protection to the brand in all the size categories and especially from price-aggressive competitors. The coup de grace was to bring in Sansui to protect the flanks, completing the protection of the core brand, Videocon, from virtually all sides. But according to Newton's law, each and every force has an equal and opposite reaction. So while a new range of brands and sub-brands creates a revenue thrust and protects the core brand, the core brand tends to get compressed over a medium- to long-term period. Likewise, Videocon saw its market share fall to 19 per cent from 26 per cent. However, all the other brands that were a part of the overall multibranding campaign gained substantial market share. So while production capacities were shored up, brand shares got fragmented. This led to an overall consolidation of the core brand, Videocon, which itself grew by 40 per cent. Thus, a multibranding exercise, once initiated, can bring about a substantial consolidation of the core brand. d. Recent deals: y Videocon has the largest distributed manufacturing base across India - 12 facilities. (As Compared to LG's two, Samsung ' has one, and Onida's two) y Ample experience in managing a complex supply chain. y Its backward integration (makes circuit boards, shells for its TVs). y Taking advantage of policy-friendly locations. y Wide product portfolio complements each other giving us an edge in terms of marketing, logistics, manufacturing etc. It is because of this bigness ('Bada Hai Toh Behtar Hai') that they are India's largest consumer electronics and home appliances company.


Physical distribution is the delivery of goods at the right time and at the right place to consumers. Place mix includes the following variables: 1. Types of intermediaries available for disribution 2. Marketing channel, available for distribution 3. Transportation, warehousing and inventory control for making the product available to consumers easily and economically. 4. For large scale distribution service for wholesalers and retailers are reguired. A market manager has to select a channel which is convenient, economically and suitable for the distribution of specific product. In case of Videocon, it has large no. of intermediaries available for distribution. The most convinenent way for distribution is through manufacturer-his own depots-retailers-consumerchannel. In case of LED t.vs, after being manufactured, it is send to its own shops or other depots like Alfa, Croma, etc. and ultimately reaches the consumers. The distribution is in international market and domestic market. LED is mainly available for urban people.

INDUSTRY SCENARIO Before the liberalization of the Indian economy, only a few companies like Kelvinator, Godrej, Allwyn, and Voltas were the major players in the consumer durables market, accounting for no less than 90% of the market. Then, after the liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo, Aiwa came into the picture. Today, these players control the major share of the consumer durables market. Consumer durables market is expected to grow at 10-15% in 2007-2008. It is growing very fast because of rise in living standards, easy access to consumer finance, and wide range of choice, as many foreign players are entering in the market. Consumer durables are the products whose life expectancy is at least 3 years. These products are hard goods that cannot be used up at once. Consumer durables Sector can be classified as follows: 1. Consumer Electronics includes VCD/DVD, home theatre, music players, color televisions (CTVs), cameras, camcorders, portable audio, Hi-Fi, etc. 2. White Goods include dishwashers, air conditioners, water heaters, washing machines, refrigerators, vacuum cleaners, kitchen appliances, non-kitchen appliances, microwaves, built-in appliances, tumble dryer, personal care products, etc. 3. Moulded Luggage includes plastics. 4. Clocks and Watches 5. Mobile Phones 1. CURRENT SCENARIO The consumer durables market in India is valued at US $ 4.5 billions currently. In 2008, microwave ovens and air conditioners registered a growth of about 25%. Frostfree refrigerators have registered significant growth as many urban families are replacing their old refrigerators. . Washing machines, which have always seen poor growth, have seen reasonable growth in 2006. More and more Indians are now buying electrical appliances due to change in electricity scenario. The penetration level of color televisions (CTVs) is expected to increase 3 times by 2008. On the brick of rapid economic growth, India has witnessed the dynamic change in country's consumer electronics industry. In last few years the industry has been

witnessing significant changes in retail boom, growing disposable income and availability of easy finance schemes. One electronic gadget that has brought new revolution in Indian Electronic Industry is Television Set. Today, India is fast emerging as the key driver in the global television market both as a manufacturer and consumer. In recent years, the market for televisions in India has changed rapidly from the conventional CRT technology to Flat Panel Display Televisions (FPTV). Currently, the split between CRT and FPTV is around 97% and 3% respectively. In addition to this, one of the most striking changes sweeping across the colour television market in Indian market is the exponential growth of the flat panel television (FPTV) market, in common parlance called the liquid crystal display (LCD) and plasma televisions. Moreover, as per recent research data available, the global market for FPTV is expected to grow from 51 million units in 2006 to 127 million by 2009. Looking at the present scenario, over the last couple of years, the LCD prices have even dropped by around 30 per cent annually. Some of the important factors that boasted this growth also include the increasing awareness of the advantages of LCD televisions, the growing availability of the product across dealer counters and the Finance schemes in the market. Besides this, as a manufacturing hub, the television industry is improving more and more. There are many domestic and MNC companies that have increased their production bases in the country. Easy availability of lowcost skilled labor and the emergence of SEZs, which are tax-free zones are some of the key factors that have resulted in growth of these manufacturing units. In fact, encouraged by tax-breaks, new manufacturing units are coming up in lessdeveloped regions now. Today, India is one of the few emerging countries to have an excellent component supply base in terms of manufacturing facilities for glass and color picture tubes, so it helps it a good choice for all those companies who are looking to take benefit of this emerging market. In present scenario top player for colour television are LG VIDEOCON SAMSUNG SONY


Michael Porters Five Forces Model provides a robust and time-tested framework for analysing any industry, reflected in the strength of the five forces (industry competitors, potential entrants, threat of substitutes, power of buyers and power of suppliers). The collective strength of the five forces determines the ultimate profit potential in an industry, Where profit is measured in terms of long-term returns on capital invested. The elements of each of the above forces and the extent and /or effect of each element in the context of the television industry have been analysed and enumerated below. The Porters Five Forces tool is a simple but powerful tool for understanding where power lies in a business situation. This is useful, because it helps you understand both the strength of your current competitive position, and the strength of a position youre looking to move into. With a clear understanding of where power lies, you can take fair advantage of a situation of strength, improve a situation of weakness, and avoid taking wrong steps. This makes it an important part of your planning toolkit. Conventionally, the tool is used to identify whether new products, services or businesses have the potential to be profitable. However it can be very illuminating when used to understand the balance of power in other situations.

1. COMPETATIVE RIVALRY AMONG INDUSTRY (VERY HIGH) 2. BARGAINING POWER OF BUYER (VERY HIGH) 3. BARGAINING POWER OF SUPPLIER (LOW) 4. BARRIER TO ENTRY (LOW) 5. THREATS OF SUBSTITUTES (LOW) 3.1 Degree of Rivalry Degree of rivalry denotes the intensity of competition within the industry. Videocon, LG, samsung, Sony, Onida, are the big competitors in television industry. Although Videocon, another major player has managed to hold its own in the midst of the onslaught from the Korean majors, though profits have suffered. Other large Indian companies in the top of the list are Mirc Electronics. While Mirc Electronics is managing to hold its share by adopting value for money strategy, BPL is facing tough time, experiencing drastic decline in market share. Sony, Philips, Akai, Sansui, Aiwa, Toshiba and now Hyundai are the other foreign brands in the market. The industry is based on numbers game and companies will have to maintain a fine balance between catering to lifestyle requirements and meeting the needs of average consumer. 3.1.1 Competitor Analysis A detailed analysis of some of the major players is done below:

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

SAMSUNG Initially the strategy of Samsung in India was to create premium image by emphasising global brand. After facing stiff competition from another Korean majorLG, Samsung also started playing price game. In 2004 it reverted back to its premium positioning, although it resulted in some loss of market share. In line with the Global Digital Initiative of the Parent Company, Samsung India is seeking to acquire digital leadership in India by introducing its digital ready televisions like the 40" LCD Projection TV, 43" Projection TV and the Plano series of Flat Colour televisions. ONIDA Its popular devil ad although had engendered a strong emotional pull towards the brand, technologically it represented no advancement. The company plugged the gap by touting its digital technology. Like Videocon, it has also been able to hold its market share. The world-class quality of Onida has enabled the company to make a breakthrough on the export front. It has technical tie- up with the Japan Victor Company, better known as JVC. So focused is Onida on positioning itself on the premium, high- tech plank that it is even planning to push its own envelope on obsolescence, much. The strategy is aimed at further broad basing the product offering of the company, which has largely dominated the top-end of the television market, across multiple market segments. VIDEOCON Videocon has always been a price player and has an image of a low price brand. This entails providing more features at a given price vis--vis competitors. It has taken over multinational brands to cater to unserved segments, like Sansui- to flank the flagship brand Videocon in the low to mid priced segment, essentially to fight against brands like BPL, Philips, Onida and taken over Akai- tail end brand for brands like Aiwa. Videocon is one of the largest manufacturers of television and its components in India and thus has advantages of economies of scale and low cost due to indigenisation. It has the widest distribution network in India with more than 5000 dealers in the major cities. It also has a strong base in the semi-urban and rural

markets. Due to its multi-brand strategy, it has at present multiple brands at the same price point. This has led to a state of diffused positioning for its brands. It has also led to a cannibalisation of sales among these brands. The flagship brand Videocon has lost market share due to the presence of Sansui in the same segment. Because of reduction in import duties on CPT the cost advantage of Videocon is also on the decline. Hence it is facing rough weather and also trying to boost exports. Besides understanding the strategy adopted by different players, several other factorsindustry growth, concentration and balance, corporate stakes, fixed cost, and product differences need to be analysed to determine the extent of rivalry between the existing Players. 3.2 The threat of potential new entrants (low) High capital required entering into television industry, which needed large investment on technology, distribution, service outlets and plant. Difficulty for customers in switching cost, when they are satisfied with their current product as well as difficultly for new entrants to have product differentiation because customers had already familiar with those established consumer electronics companies, therefore new entrants have to spend a lot on branding and customer knowledge. It is difficult to obtain a license; successful applicant has to undergo through a form of competitive evaluation, such as a comparative evaluation process. Threat of entry is determined by the entry barriers, which act to prevent new firms from entering the industry. A lower entry barrier makes it difficult for the existing producers to remain profitable for long. When profits increase, additional firms will enter the market to take advantage of the high profit levels and over time drive down profits of all firms in the industry. When profits decrease, some firms will exit the market, thus restoring the market equilibrium. Barriers to entry arise from several sources: 3.2.1 Access to Distribution Channels A strong distribution network is absolutely essential to compete in this industry. Not only does it guarantee a country wide reach for a companys products but is also necessary for providing good after sales service. Videocon has implemented ERP system, which helps in integrating the

manufacturing, marketing, procurement and distribution services with the corporate office LG Electronics sells in 1800 towns and cities with a population of 1,00,000 and above. Samsung also has a widespread service network, which includes 123 exclusive service centres and 200 distributors in any town with more than 1 lakh population. All BPL dealers are linked via VSAT nodes, ensuring online availability of information on inventory status and sales movement. Distribution hence is difficult and costly as established firms dominate distribution. Large incentives are required to gain entry into the distribution channels and further gain recommendation to retailers from the dealers. 3.2.2 Brand Salience With little product differentiation and parity products, it is imperative that distinct images are created in the minds of consumers through positioning and brand building. MNCs have been able to compress the cost of brand building by amortising the cost of sponsoring international events across a larger footprint straddling multiple countries. 3.2.3 Capital Investment and Economies of Scale Television industry is capital intensive and players have made huge investments in putting up state of the art manufacturing facilities. Videocon has seven manufacturing site in India Sony India had a production capacity of 300,000 CTV sets with capacity utilisation of 66%. Samsung is investing $4 mn to expand its CTV manufacturing capacity at Noida to 800,000 units per year. The existing capacity of the plant is around 600,000 units. Other players like Mirc Electronics, LG have also set up manufacturing facilities in India. The market players need sales volume to achieve economies of scale, which is difficult because of large number of competitors. Apart from investments in manufacturing the industry requires huge working capital to manage inventories. Supply chain mgmt. and inventory management thus becoming crucial toDetermining profitability. With regard to sourcing funds, MNCs are better placed Than their Indian counterparts as they manage to get funds from their parent Companies at low

rates of interest. Huge capital requirement thus can act as barrierto entry. 3.3 Threat of Substitutes goods (low) In Porters model, substitute products refer to products in other industries.there is few substitutes from other industry if any. Most of them seem to be obsolete or have one foot out of door. Internet though emerging as an infotainment medium is very low in penetration. Moreover the industry has responded to the future threat by introducing a TV that can provide functions of the Internet along with regular features, e.g., BPL digital that includes Internet and cellular facilities. 3.4 bargaining power of Buyer (high) The power of buyers is the impact that consumers can have on a producing industry. Buyer power influences the prices that a firm can charge. Buyer power is influenced by various factors as follows: 3.4.1 Buyer Concentration The industry is akin to consumer durables whose end users are fragmented. Hence buyers do not have any specific influence on producers. 3.4.2 Buyer Switching Cost The cost incurred by consumer in switching from one television brand to another is practically zero. Brand loyalty is low. Hence the companies cannot rest on their laurels and have to be on their tenterhooks to retain the customers. 3.4.3 Price Sensitivity Market is highly price conscious and promotion driven. With the onslaught of VIDEOCONs major price cuts and promotional schemes, this market has now become a promotion driven one. To successfully compete in this industry, even premium players like Sony, LG have had to come up with schemes. LG and Philips have Been the most aggressive amongst industry leaders as far as pricing is Concerned and hence their realisation shave been lower than industry average. Industry leaders like LG focus on low- medium priced CTV, while Samsung has Moved gradually towards higher priced CTVs. The domestic high-end CTV prices will follow the global price trend of declining prices. However, the Prices of domestic products would be higher than those of global products due To negligible demand in the domestic market and hence most likely to be met Through imports. market is highly price sensitive as the

Demand has increased with fall in prices. 3.6. CONCLUSION The variables affecting the industry with regard to each of the five forces have been Categorized as favourable or adverse. Favourable variables have the potential to improve profitability, while adverse variables reduce profitability of the industry. Some strategic initiatives, which could be adopted to leverage the favourable forces And protect themselves from the adverse ones, are as follows: R&D and Marketing will have to work closely together. R&D will have to play a role in cost innovation, which can cut component cost and raise performance. The number of defectives has to be reduced at negligible levels. The quest should be to do even better. Each assembly line can be made to compete with the other. Vital to the spread out is the re-haul of distribution network. Home appliances have necessitated separate dealers, many of them specialists. For sharper focus on all categories individually, the market has to be opened wider. Brand building will be important, so as to ensure brand preference. Marketers will have to strategise to pull the consumer up the value escalator. A good fraction of sales if come from high margin products as flat TVs and projection TVs would improve profitability of companies. Sharply differentiated products with effective communication on a continuous basis would be the key for future. Challenge lies in creating higher order universal benefits and sensitising the larger audiences to it.


(62%) of customer came to know about Videocon through TV advertisement as compare to customers of Samsung and LG. As far as print media ad is concerned, only few customers came to know about Videocon through print media ad as compare to customers of Samsung & LG. But no customers of Videocon came to know about Videocon through hoardings and billboards, but few customers came to know about Samsung & LG through hoardings and billboards. Hence, we can infer that Videocon is doing positioning through TV advertisements rather than through print media ad and hoardings and billboards. They should more focus on word to mouth marketing because they are weak in this. Therfore we can conclude that Videocon is more in demand than LG and Samsung. The publicity of Videocon is more through TV advertisements which has impressed the customers as most of people see TV and they came in contact with this product faster than any other.

Videocon company is progressing day by day quality wise ,product wise rendering new services , introducing new technology in market in a low price. We expect that the company will expand capital wise , revenue wise and also goodwill wise. On second hand it should improve its quality, availability of product, advance technology compare to other brands as there is lot of competition going on in the market regarding this sector.


The information for this project is taken from the following sources:  www.yahoo.com  www.google.com  www.business.mapsofindia.com  www.wikipedia.com


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