Beruflich Dokumente
Kultur Dokumente
ON
FOR
VIDEOCON INDUSTRIES LTD.
Aurangabad
IN PARTIAL FULFILLMENT OF
BY
(2005 2007)
GUIDED BY
Prof.Yuvraj Lahoti
She has worked under our guidance and direction. Her work found to be good and complete
in all respect. During the period we found him hardworking, sincere and loyal. We wish her
all the best for future.
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VIDEOCON CERTIFICATE
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ACKNOWLEDGEMENT
A Project usually falls short of its expectation unless guided by the right person at the right
time & good opportunities. Success of a project is an outcome of sincere efforts, channeled
in the right direction, efficient supervision and the most valuable professional guidance. This
project would not have been completed without the direct and indirect help and guidance of
such luminaries. They provide me with the necessary recourses and atmosphere conductive
for healthy learning and training.
At the outset I would like to take this opportunity to gratefully acknowledge the kind and
patient guidance I have received from my project guide Mr. Sunil Tandon Vice President
Marketing and his assistance managers Mr. Murli Mohan ( Manager Central Marketing )
without there critical evaluation and suggestion at every stage of the project, this report could
not have reached its present form. In addition, my internal guide Prof.Yuvraj Lahoti has
critically evaluated my each step in developing this project report
I express my sincere thanks to Prof.Yuvraj Lahoti and Dr. Sharad Joshi, Director,
Vishwakarma School of Business Management and Research, Pune, for their valuable
advice and guidance. They are always a source of inspiration for me. My thanks are
also due to the faculty and non-faculty member of Vishwakarma School of
Management and Research, Pune, for their cooperation and support in completion of
my project.
I would also like to thank all the Respondents who gave some of their valuable time to me.
Finally I would like to thank My Family Members and My Friends for their valuable
inputs.
Miss.Pooja Palod
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Declaration
This work is original and has not been copied and submitted either in part or full
Miss.Pooja Palod
Date:
Place:
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INDEX
1 Executive Summary 01
2 Introduction 03
7 Theoretical Background 23
10 Findings 55
11 Suggestions 58
13 Annexure
14 Bibliography
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Executive Summary
Critical Study of Advertising Effectiveness and its impact on Brand Positioning of Videocon
Industries was the project undertaken as a part of the academic requirement of two year
PGDM(Autonomous MBA) degree.
The objective of the project was to understand the impact of advertisements on brand
positioning of Videocon Industries Ltd as Indian Multinational and also to find out the reach
and impact on overall buying behavior of consumers after this positioning.
In major part we have tested advertising effectiveness of 4 Videocon advertisements in the
sample area and it has been co related by the positioning created after the launch of these
advertisements.
We have also stressed on brand recalling pattern and buying behavior attribute selections of
consumers.
The project was carried out from 27-05-2006 to 30-06-06 under the guidance of Mr.Sunil
Tandon Vice President-Marketing Videocon Industries.
In today s highly competitive world companies are stressing on its brand positioning and also
on buying behaviour as Management Guru Dr.C.K.Pralhad says we should be more
concerned about our customers and their changing buying preferences then and then only we
can serve them better and can create competitive advantage over competitors so we have
taken this area for research.
In this we have discussed the strategic position and thinking of Videocon on the marketing
and branding aspect also as company is on global hiring spree what consumer perceives about
Multinational image was major concern to management also so we have discussed this theme
initially in depth with the management and they become part of our research.
Then we have switched over research needle on Consumers and we got very valuable first
hand data which was collected by questionnaire and interpreted by ranking and scaling for
relevance and accuracy
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The survey was successfully undertaken by interacting with 100 consumers in Aurangabad
city through which I have made my conclusion.
I found that company is running business with multi brand strategy and because of that they
use to concentrate on entire brand basket which in result created sort of negligence on
positioning of Videocon name in last years but now they have changed there vision and
poured lot of efforts on proper marketing mix to create multinational image and higher
recalling and trustworthy image in consumers. And my research finding supports this with
relevant data. Consumers are having good image about Videocon still the positioning and
distribution pull of major rival is in course so they are still fighting for market share
leadership. Also for studying adv effectiveness we have carried out content research and
outcome of this was also very positive.
In last part I have suggested and recommended some remarks for making promotion effort
and branding strategy more effective.
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Introduction
When you think about Nike, Starbuck, Sony or Videocon, what comes to mind? If you are
like most people, it is certain Image, feeling, or impression. This is because a brand is a
perception resulting from experience with, and information about, a company or a line of
products. What many people fail to understand is that brand lives in the heads and hearts of
consumers not on side of a package. This is happening just because increased experience of
consumers with increased exposure rate of advertisements in the market.
Creating awareness of a brand name and positioning is part of building brand. Customers
want to know what to expect from brand and how they will be benefit from using the brand,
what the brands stands for etc. but this need arised in market as competition in the market
offering is increased by many players.
Market place confusion arises from the proliferation of brands and products. Forty years ago,
the average grocery shop carried about 40 brands, today that number is increased to 400 and
big malls are having more than 4000 brands. This increase in the brands is in all sectors
including services and because of it companies are rushing to create increased awareness in
the market by various promotional means. Advertising is major way of communicating with
consumers in the market.
Now consumers are suffering from communication overload and because of it positioning
errors also created by the companies now they need to correct it by co coordinating marketing
communications and fine tuning message strategies. Advertising effectiveness studies makes
brand message more relevant and it also helps in developing effective message strategies.
So we have taken this subject as interest in this field and which will help the company to
develop and think positively on its advertising strategy and positioning strategy.
Consumer durable sector in India is increasing rapidly and many international layers are
playing key role in it and Videocon from last year projecting them as Indian multinational
and also they want to grab major market share so the need of evaluating their advertising
performance become important.
So the study with said title taken for the research.
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Corporate Profile Of Videocon Industries
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:
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. Refrigerator
manufacturing is further supported by our in-house compressor manufacturing technology in
Bangalore.
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Shri Nandlal Madhavlal Dhoot, the founder of the Videocon Group, completed his education
in Ahmednagar and Pune. As a next logical step to vertical integration, he boldly took upon
an entrepreneurial venture by importing machinery from Europe to set up the Gangapur
Sakhar Karkhana (Sugar Mill) in 1955.
Through a technical tie up with Toshiba Corporation of Japan, he launched India's first
world-class color Television: Videocon. Today, Videocon is household name across the
nation- India's No. 1 brand of Consumer Electronics & Home Appliances, trusted by over 50
million people to improve their quality of life.
The year 2005 marks a milestone in the history of Videocon with the acquisition of the
complete Colour Picture Tube operations of the Thomson group and the Indian operations of
AB Electrolux, Sweden. Further subscribing to their faith in Videocon, Thomson and
Electrolux bought about 15% and 5% stake respectively in Videocon Industries Ltd., our
flagship company having a market capitalization of around USD 2.5 billion.
The group today is one of the largest manufacturers of Colour Picture Tubes and Glass shells
from state of the art units in Mexico, Italy, Poland, India and China, which form the backbone
of many Colour Television manufacturers around the world.
Our Oil & Gas operations contribute to India s ever-growing demand for energy and
developmental needs. Videocon group is more ready than ever for further expansion and
serving to continue spreading happiness to millions of people around the world through its
products.
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Videocon s Board of Governance
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Logo Logic
This is the new Videocon symbol. It reiterates the ethos of a company dedicated to
maintaining the highest international standards of excellence through quality, technology and
innovation. For over a decade now, Videocon has been bringing the latest and very best in
Consumer Electronics and Home Appliances. Successfully adapting the best of international
technology to suit Indian needs, and crafting it to improve the quality of life as million of
satisfied customers will agree.
The symbol of Videocon asserts its passion for impact and the two E s on the ethic side
represent the wide spectrum of interest raining from Electronic to Energy . Along with the
steely glint, this communicates the group's global ambition, its strength, sterling credentials
and innovative drive. A symbol that proclaims a paradigm shift. A sign that represents the
new force that is Videocon. Thus recapitulating our principle of reaching out and touching
the lives of millions of people. Worldwide. A company dedicated to maintaining the highest
international standard of excellence though quality, Technology and innovation. For over a
decade now, Videocon has brought the latest and very best in consumer electronics and home
appliances, successfully adapting the best of international technical to satisfy customer will
agree a symbol that proclaim a paradigm shifts a sign that new force that is Videocon. Thus
recapitulate our principle out and touching live million of people.
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Corporate 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.
Social Responsibility
Hospital
In the memory of our founder Videocon runs a world class hospital with the latest
equipments, MRI, CT scan machines run by dedicated doctors specializing in Cancer and
heart surgery. The hospital is 100% charitable and caters to the people in Indian villages,
which cannot even support their families let alone afford medicines.
Schools
The group runs a world class school dreamt by our LATE founder in the village of Gangapur,
dedicated to giving high quality high school education to underprivileged girls inspiring them
to aim higher and work for the development of the country.
Cricket
The Videocon School of cricket was launched in Kolkata to train budding talent in the age
group of 10 to 17. It aims to put about 700 students through the paces every year.
Sponsorship of cricketing events across the globe underlies Videocon's commitment and
passion for sports as well as its goal to connect with a global audience. Videocon is inspired
heavily by the uplifting values perpetuated by sports. Its ability to draw people together
irrespective of differences in race, gender, religion and country. Unity of spirit and purpose is
ultimately what builds bridges between diverse cultures.
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Plant Locations
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Videocon - Multi Brand Strategy
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
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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
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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
Engages 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
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Brand Basket
19
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VIDEOCON SWOT
STRENGTH
Technology:
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, Poland 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.
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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 logistic support.
OPPORTUNITY
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.
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THREAT
23
Brand Strategies
The year 2006 comes at a time when Videocon is fresh from its acquisition of Thomson s
colour picture tube business worldwide, making it the first truly Indian multinational. The
company now has access to the finest technologies in the world, due to the continuous
innovation by its R&D centres across the world & state-of-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; to
the 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 modern-day consumer
is aware of the latest technological advancements in electronics & appliances, and the options
available 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 have
also increased. Videocon s endeavor is to not only fulfil the needs of the customer but make
available 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 Series
range 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 a
large scale if it does not integrate its processes. Videocon was one of the first companies to
realize the importance of information technology for global scale efficiency. As early as the
year 2000, it implemented the SAP R3 4.0B System. In 2005, Videocon became the first
company in India to implement the mySAP Business Suite, which consists of various
components 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 supported
directly by SAP AG, Germany. Videocon is ramp-up customer for SAP, one of the few
clients who will receive all updates in the system as and when they happen.
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The SAP ERP 2004 business solution has resulted in integration of processes to strengthen
resources, networks & infrastructure within the company. It has enabled Videocon to
proactively respond to market dynamics, maintain control over costs, increase productivity,
and make the company more agile and better prepared for the future. The various modules
like Sales & Distribution, CRM, Logistics, Plant Management, Production Planning, Material
Management, Quality Management, Finance, Human Capital, Business Information
Warehousing and Enterprise Portal have all integrated Videocon into one cohesive unit,
functioning at maximum efficiency, geared to face the future.
As a first step towards reaching out to rural areas, 2005 saw the launch of a nation-wide
series 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 and
bringing the Videocon experience close to the consumers homes. In 2005, the Lifestyle Expo
was held in 53 locations across the country, and over 1.2 lakh people visited them to look at
the latest technologies on offer, experience the Videocon products hands-on, and be
entertained 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 were
12, 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. The
Multie & Maxie range of washing machines were particularly successful. Besides the
normally good seasons like Onam in Kerala, Durga Puja in the East & Diwali all over the
country, Videocon launched several off-season offers like Hum-Tum Offer, Heads You
Win 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
country 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 on
the pulse of India. And knowing that Cricket & Bollywood are the two things that never fail
to arouse the passions of Indians, Videocon maintains a strong association with these two,
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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 now
endorse Videocon products. According to Mr. Sunil Tandon, VP Marketing, Videocon, With
his swashbuckling style & hunger for success, Dhoni epitomises the spirit of Videocon. His
youthfulness and determination will have a positive rub-off on the brand and increase its
appeal among the younger generation.
In 2006, Videocon plans to continue its strong focus on flat TVs. The fast-growing 29-inch
segment will be an area of focus. Besides, with the Slim&Trim range set to expand into new
models 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 fully
automatic washing machines, and Videocon will also concentrate on Frost-Free Refrigerators,
the fastest-growing category in refrigerators. 2006 will also see Videocon launching its
microwave ovens in a big way, with a wide range spreading across all segments. In air
conditioners, 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.
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Research Methodology and Research Design
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 called 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.
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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.
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.
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Theoretical Background
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 a
good brand and remain loyal to that brand. It is important, therefore, to understand what
brands 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 to
fight for the lower profits available in commodity markets.
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What is a brand?
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 .
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 has high brand loyalty, name awareness, perceived quality and strong product
associations. Brand equity also includes other intangible assets such as patents, trademarks
and channel relationships.
Brand image
Brand image refers to the set of beliefs that 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 modified
product in a new market. Virgin is perhaps the best example of how brand extension can be
applied into quite diverse and distinct markets.
Brands are rarely developed in isolation. They normally fall within a business product line or
product group.
A product line is a group of brands that are closely related in terms of their functions and the
benefits they provide. A good example would be the range of desktop and laptop computers
manufactured 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 be
measured 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 product
mix 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 those
operating in highly competitive consumer markets.
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Building a brand:
Professor David Jobber identifies seven main factors in building successful brands, as
illustrated in the diagram below:
Quality
Quality is a vital ingredient of a good brand. Remember the core benefits the things
consumers expect. These must be delivered well, consistently. The branded washing machine
that leaks, or the training shoe that often falls apart when wet will never develop brand
equity.
Research confirms that, statistically, higher quality brands achieve a higher market share and
higher profitability that their inferior competitors.
Positioning
Positioning is about the position a brand occupies in a market in the minds of consumers.
Strong brands have a clear, often unique position in the target market.
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Positioning can be achieved through several means, including brand name, image, service
standards, product guarantees, packaging and the way in which it is delivered. In fact,
successful positioning usually requires a combination of these things.
Repositioning
Repositioning occurs when a brand tries to change its market position to reflect a change in
consumer s tastes. This is often required when a brand has become tired, perhaps because its
original market has matured or has gone into decline.
The repositioning of the Lucozade brand from a sweet drink for children to a leading sports
drink is one example. Another would be the changing styles of entertainers with above-
average longevity such as Kylie Minogue and Cliff Richard.
Communications
Communications also play a key role in building a successful brand. We suggested that brand
positioning is essentially about customer perceptions with the objective to build a clearly
defined position in the minds of the target audience.
All elements of the promotional mix need to be used to develop and sustain customer
perceptions. Initially, the challenge is to build awareness, then to develop the brand
personality and reinforce the perception.
First-mover advantage
Business strategists often talk about first-mover advantage. In terms of brand development,
by first-mover they mean that it is possible for the first successful brand in a market to
create a clear positioning in the minds of target customers before the competition enters the
market. There is plenty of evidence to support this.
Think of some leading consumer product brands like Gillette, Coca Cola and Sellotape that,
in many ways, defined the markets they operate in and continue to lead. However, being first
into a market does not necessarily guarantee long-term success. Competitors drawn to the
high growth and profit potential demonstrated by the market-mover will enter the market
and copy the best elements of the leader s brand (a good example is the way that Body Shop
developed the ethical personal care market but were soon facing stiff competition from the
major high street cosmetics retailers.
Long-term perspective
This leads onto another important factor in brand-building: the need to invest in the brand
over the long-term. Building customer awareness, communicating the brand s message and
creating customer loyalty takes time. This means that management must invest in a brand,
perhaps at the expense of short-term profitability.
Internal marketing
Finally, management should ensure that the brand is marketed internally as well as
externally. By this we mean that the whole business should understand the brand values and
positioning. This is particularly important in service businesses where a critical part of the
brand value is the type and quality of service that a customer receives.
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Think of the brands that you value in the restaurant, hotel and retail sectors. It is likely that
your favorite brands invest heavily in staff training so that the face-to-face contact that you
have with the brand helps secure your loyalty.
Brand Strategy
Standing out amid a massive chorus of competitors is a challenge for any company in today s
business climate. Want evidence? Look at any magazine, TV show or surf the Internet. The
number of offers and sales pitches one receives on a daily basis is simply staggering and
increasingly ineffective. It s no wonder, then, why businesses are seeking new and more
effective ways of increasing the influence of their brand strategy in the marketplace. A strong
brand strategy can increase the awareness of a company and its offerings in such a way that
establishes strong feelings and reactions and a favorable view towards the company as a
whole. To create this sort of brand awareness in your market, it takes skillful Brand
Strategy know-how.
Successfully out-branding your competitors is a continuous battle for the hearts and minds of
your customers. The proposition your brand strategy makes must be very compelling,
attractive and unique among competitive offerings. The proposition must also be consistently
reinforced throughout all phases of an organization, from senior executives to customer
service, research and development, business development and even your business partners.
What entails a comprehensive and effective Brand Strategy process? That s a much longer
answer than what we have space for here, plus it varies from industry to industry, but here are
some very basic guidelines about what makes a good Brand Strategy.
Brand Strategy is nothing new. Yet, the expectations consumers have for a product or service
they buy is stronger than it s ever been. This is why companies interested in long-term
success must create the most promising, targeted brand experience possible.
Whether you know it or not, you already have a brand, and your customers are having a
brand experience when they interact with you, whether it be with your products and
services or the people in your company. In order to craft this brand experience in a
calculated way that is beneficial for your company, you must have a strong understanding
about what exactly a brand is.
In other words, brand is the totality of your company and its business.
A brand is the sum of the good, the bad, the ugly and the off-strategy, says Scott White,
one of the nation s leading branding consultants and a valued expert companies like Sun Life
Financial and Franklin Sports rely on. It is your best and worst product. It is your best and
worst employee. It is communicated through award-winning advertising as well as those ads
that somehow slipped through the approval cracks and sank anything riding on them. It is
your on-hold music and the demeanor of the receptionist who puts that valued client or
prospect on hold. It is the carefully crafted comments by a CEO as well as negative buzz by
the water cooler or in chat rooms on the Internet. Brand is expressed through written, audio
and visual content. It is interpreted through emotional filters every human being has where
33
anything can happen. Ultimately, you can t control your brand. You can only hope to guide
it.
Building on the inherent values of a brand should be the core of any branding strategy. If
they re not clear, get a good grip on them first. Is the brand about honesty or integrity?
Quality? How about excellent communication and customer satisfaction?
With values set, a brand proposition is ready to be established. Objective and comprehensive
branding research are the keys here. At a minimum, both must be done to establish clarity on
the brand s strengths and weaknesses, the target audience and the competition. If possible,
branding research should also be done on the brand s industry, its history, the status of the
market and possibilities for future expansion.
If it s only possible to do one body of brand research, discover as much as possible about
your target customer. Find out who they are and what their needs and desires are. Make it
your mission to get as detailed information as possible on their age, gender, income, shopping
habits (online and off) and anything else of relevance you can determine. If you re targeting a
business market, these criteria will differ, depending on the industry. Understanding your
target market and what they want is key to developing a winning brand. Knowing these
things should also give you an idea for what communication medium and content would work
to engage your market.
Other research you might want to do is find out what your competitors offerings are like.
How do your offerings stack up? What can a customer get from your product that they can t
get from anyone else? Find out these things, and you have the seeds for a winning branding
strategy, not to mention great fodder for an ad campaign.
The brand statement, often called the brand promise or proposition, is a derivative of
branding research. It states the benefit of buying and using your company s products or
services. For clothing, it could be about style or comfort. For a car, it could be about safety or
reliability. Whatever it is, it must be clear, engaging and presented in a context relevant to the
customer. One example of an effective brand promise is that of BMW s. It s stated right in
the company s tagline: The Ultimate Driving Machine.
34
Your promise should be golden
If your company s products and service don t live up to their brand promise, new customers
will become lost customers and loyal customers might leave, too. Simply put, your
deliverable, what ever that is, must follow through on the promise in fact, it would be best
if it actually over-delivered.
Don t reuse something a competitor has already promised even if it works for your product or
service, and don t be vague in trying to position your company favorably against your
competitors (such as saying you re the best pizza in town. ). Be specific because specific is
exponentially more memorable. Besides, people expect you to be good. Otherwise, they
wouldn t give you their business.
Creating a positive emotional association in your market for your product or service is key. It
can create want and desire by the mere mention of your brand, product or service name.
Needless to say, that s powerful. For instance, the mere mention of Ben & Jerry s conjures up
images of numerous unique premium ice cream flavors and with the anticipation for your
favorite (in my case, Cherry Garcia). Such positive emotional associations are built over time
through good branding practice and a time-tested relationship between you and your
customer based on intrigue, trust, understanding and support.
To create a brand promise that creates such emotional connections, it should be:
Brand Positioning
There is no greater marketing truth in this era of killer competition ; in this era of an insane
proliferation of brands; in this era of shock and awe bombardment of advertisement.
Marketers have got into a vicious cycle. To counter this clutte of advertisements they are
creating more clutters.
Many philosophers says that, to succeed in the market first step is to position or situate the
brand in the target consumers mind in such a way that in his or her perception of brand, it is
distinctive and offers a persuasive customer value better than its competitors. This is called
competitive advantage.
35
Product position and Positioning:
Positioning the other hand refers to a brands subjective attributes in relation to competing
products. This perceived image of the brand belongs not to the product but rather is the
property of the consumers mental perception and in some instances, could offer widely from
a brands true physical characteristics.
Positioning is the battle for a place in the consumers mind. It is less what we do a product and
more what we do to the consumers perception of the product.
1. Product class
2. Consumer segmentation
3. Perceptual mapping
4. Brand attribute and benefits.
Now a days advertising become the key promotional tool for creating positioning in the
market and many companies are doing it well with advertising but at the same time
companies have to test its positioning and try to find out positioning errors by carrying out
comprehensive advertising effectiveness research.
Advertising - effectiveness?
The answer depends on what objectives or tasks were set for the advert.
The table below sets out some possible objectives/tasks and how the effectiveness of the
advert might be measured:
36
- Number of requests for further information
-Sales
Build a brand image -Test customer awareness of brand recognition and
perceived values
- Levels of repeat purchase
Build customer loyalty and relationship
- Levels of customer retention
- Measure demographic profile of purchases
Change customer attitudes - Measure type of goods ordered by new purchasers
- Compare with previous data
Advertising and other IMC functions are evaluated using number of different methods.
Advertising concepts and strategies that are supported by large media budgets receive the
lion s share of development, evaluation and measurement. If a company makes three TV
commercial and spends lot of money on media time and space, and then finds that the
messages are not communicating or persuading, it has wasted manufacturing costs and
promotion cost, so at every stage of the promotion strategies evaluation is required.
Quantitative research is often used in account planning to find customer insight that can be
addressed with an advertising message to deliver on a stated objective. Such research can be
used to develop and refine a message strategy.
Copy Testing
Copy testing can be used either while the brand message is in development or after it appears.
All brand message should, to some extent, do two things coomunicate and persuade. To
make sure these two message objectives are achieved, companies use several different
measuring techniques. Copy testing can be used to evaluate several aspects of communication
as :
37
Attention
Emotional responses
Physiological responses
In these test brand awareness and knowledge test is having direct impact on brand positioning
of any companies brand.
Companies commonly measure two types of brand awareness recognition and recall,
recognition is the act of in identifying something and remembering that you saw or heard of it
earlier. Recall is the more difficult process of bringing something back from memory.
Researcher measure recall by asking respondent to name all the brands they can think of in a
particular product category. This can be done by aided and non aided technique of
measurement.
Recall measurement of TV commercials called post tests because the commercial have
already been made and are on air are done on similar ways, respondents are called and
asked whether they watched a certain commercial for a product in particular category. In this
various questions are asked about the quality, picture, theme and jingles in it with most
attractive and recalled part of it. This helps researcher to project its impact on brand
positioning of the company.
Also there are various research tests for advertising tests as: Tracking research, real time
tracking research etc.
1. Reducing risks
3. Providing controls
4. Documenting MC contributions
38
METHODOLOGY USED FOR THE STUDY
For Critical Study of Advertising Effectiveness and its impact on Brand Positioning of
Videocon Industries simple technique of Questionnaire method is used. Sample is of 100 &
sample area is Aurangabad city.
Collected data is analyzed by help of simple statistical techniques and interpreted in graphical
explorations. For secondary data some literature study is carried out.
In Questionnaire questions are based on all the above advertisements & sample of 100 people
is carried out.( Please refer Annexure for Questionnaire)
39
Sample configuration is as follows-
Agewise
The people between age 15-19 are 20%, between 20-29 are 35%, between20-29 are 25%,
between 40-49 are 15%& Above 50 are 5%
Sexwise
In sample 50% are male & 50% are female
Educationwise
In Sample 10% people are SSC, 24% are SSC& above but not a Graduate, 46% are Graduate
& 20% are Post Graduate
Occupationwise
In sample 40% people are serviceman, 11% are Businessman, 28% are Students, 13% are
housewives & 8% are Professionals.
40
Analysis
Among all the products, which product are you planning to buy?
Series1
30
27
26
25
25 23
20 20
20
15
10 8
0
Color TV DVD player Washing machine Home theatre Air conditioner Microwave oven Refrigerator
Products
From the above graph it interprets that demand is more for Home theatre, Washing Machine
& Color TV.
50 44
40
31
27
30
20
20 16 15 13
9
10
0
ai
ui
ng
ny
on
ol
da
ai
LG
lu
nd
ns
po
Ak
So
su
oc
ni
tro
Sa
yu
rl
O
m
de
ec
hi
Sa
W
Vi
El
Brands
From the above graph it interpret that Videocon, LG & Sony are top three preferred brand.
And Videocon tops in the preference list.
41
From which media you get information about Videocon product?
Series1
120
101
100
90
80
60
45
40
20 16
11
5
2
0
TV Holdings New s paper Radio Magazine Reference Internet
Options
From the above graph it interpret that people get information about Videocon product from
TV, Newspaper & Magazine. Prominently TV and News paper is best source of information.
42
Please rank the factors that help you to decide to buy Videocon product? (1 = high, 5 = low)
Advertisement 1
2
1
21% 3
5
33% 4
5
2
15%
4
3
14%
17%
25% 11% 5
43
2.Print Advertisements
Yes
No
No
9%
Yes
91%
From the above graph it interpret that 91% people seen Print Advertisements of Videocon.
So visibility impact of Videocon print advertisement is high
Series1
38
40 36
35
30
25 21 21
20
15 11
10
5
0
Times of India Maharashtra Economic Dainik Lokmat Sakal
Times Times
New s paper
From the above graph it interpret that majority Customers seen the Print Advertisement in
TOI and Lokmat, means with English National Daily dominance of local Marathi newspaper
is high.
B] In which of the following magazine, you have seen the advertisement of Videocon?
Series1
30
25
25
20
15 14
15
10 7
5
5
0
Business world Outlook Business India Dalal street Outlook money
Business
Magazines
From the above grapgh it interprets that majority customer s seen advertisement in Business
World and Outlook Express.
9% 2% 3
4
1 5
5 34% 6
16% 7
4
9%
3 2
13% 17%
Above graph shows that Brand Name in advertisement copy attracted attention of almost
34% customers.
Product photograph 1
2
7 3
6 1
2% 4
10% 15%
5
6
5
7
11% 2
16%
4
22%
3
24%
Above graph shows that 15% customers are strongly agreed that Product photograph in adv
copy gathered attention for them but almost half of the customers said it was not gathered the
desired attention.
1
Prom inent display of special offer 2
7 1 3
3% 12% 4
6 5
25% 2 6
13% 7
3
14%
5
20% 4
13%
From the above graph it shows that around 50% customers saying like special offers in
Advertisement gathered some attraction but which s not on top of mind.
1
Use of color
2
6 1 3
14% 10% 4
5
2 6
16%
5
17%
3
4 23%
20%
Above graph shows that most of the customers are attracted towards the adv copy by the
colors used in it.
1
Innovative design
2
7
6 1 3
4%
10% 16% 4
5
6
5 7
15% 2
19%
4
3
20%
16%
Above graph shows that almost 54% customers are moderately got attracted towards the Adv
copy by the Innovative design.
1
Information about product
7 1
2
3
2% 11% 4
6 5
27% 2 6
14% 7
3
11%
5
19% 4
16%
Above graph shows that 46% customers are satisfied with the information provided in Print
adv copy and 25% customers are highly satisfied with the information in it.
Exellent
Good
Average Average
Good 8%
48%
Exellent
44%
From the above graph it interpret that 48% customers rate Videocon print media
advertisements as Good and 44% customers rate as Excellent.
3.TV Advertisements
No
11%
Yes
89%
From the above graph it interpret that 89% people seen Gayatri Mantra Advertisement.
Please choose the score you think best describes this advertisement on a scale of 1-5.
I believe the content of this advertisement is excellent
Strongly disagree 1 2 3 4 5strongly agree
1
1 2 2
1% 7% 3
4
5
5
34%
3
34%
4
24%
Above graph shows that 34% customers are rated content of advertisement was excellent.
4
28%
Above graph shows that almost half of the viewers rated advertisement presentation as very
good.
I paid more attention to the picture in the advertisement
Strongly disagree 1 2 3 4 5 strongly agree
1
2
1
2 3
2%
5 13% 4
28% 5
3
22%
4
35%
Above graph shows that 35% viewers are agreed that they have paid more attention on
pictures in advertisement. So the picture in adv gathered high attention.
3
23%
4
23%
36% customers are strongly agreed that they paid more attention on Headline
16% 4
5
5
50%
4
30%
80 67
70
60
50 40
40
30 21 24
20
10
0
Different Different Gayatri Mantra Brand name
places of people of
w orld w orld
Majority of customers and viewers recall the Gayatri mantra from the advertisement.
No
2%
Yes
98%
From the above graph it interpret that 98% people agreed with the statement, it shows that the
motive behind the campaign was become successful.
II] Slim Television Advertisement
Have you seen this advertisement on entertainment / news channels?
Yes
No
No
20%
Yes
80%
From the above graph it interpret that 80% people seen Slim Television Advertisement.
Please choose the score you think best describes this advertisement on a scale of 1-5.
5 1 2
2 3
11% 3%
11% 4
3
4
32%
43%
Majority of the customers and viewers are agreed that content of the advertisement is good
4
27%
Overall presentation of the advertisement is very good half of the viewers agreed on it.
I paid more attention to the picture in the advertisement
Strongly disagree 1 2 3 4 5 strongly agree
1
2
1 3
5 3% 2 4
27% 18% 5
3
24%
4
28%
Pictures used in the advertisement created high attention, 28% viewers agreed on it.
1
1 2
2% 2 3
5 17% 4
27%
5
3
17%
4
37%
Majority of the customers paid high attention on headline and text of the advertisement.
2%4% 3 4
12% 5
5
50%
4
32%
Above graph shows that 50% customers are rated this advertisement as very good.
What factors from the advertisement do you remember?
Series1
45 40
40
35 33
29 29
30
25
20
15
10
5
0
Brand name Features of product Theme of Presentation
advertisement
From the graph it interpret that majority people remember Theme of Advertisement. So the
idea behind communicating slim trim television concept becomes successful.
No
6%
Yes
94%
From the above graph it interpret that 94% people agrees that the advertisement give idea
about slim product.
No
Yes 25%
75%
From the above graph it interprets that 75% people would like to purchase slim line product.
III] Dhoni Advertisement
Yes
No
No
Yes
18%
82%
From the above graph it interpret that 82% people seen Dhoni Advertisement.
Please choose the score you think best describes this advertisement on a scale of 1-5
1
2
1
5 3
6% 2
4
21% 13% 5
3
4 28%
32%
From the graph it interpret that majority customers are agreed on the content of advertisement
is good
I paid more attention to the picture in the advertisement
Strongly disagree 1 2 3 4 5 strongly agree
1 2
2 3
2%
5 16% 4
29% 5
3
30%
4
23%
From the graph it interpret that 82% viewers got attracted towards advertisement by the
pictures used in it. Out of this 30% rated it as somewhat agree.
I paid more attention to the headlines & text in the advertisement
Strongly disagree 1 2 3 4 5 strongly agree
1
1 2
2
2% 3
15% 4
5
5
41%
3
19%
4
23%
From the graph it interpret that majority people ( 41%) strongly agreed that they have paid
more attention to the headline and text of the advertisement.
1 2 2
3
2%4%
3 4
16% 5
5
47%
4
31%
From the graph it interpret that majority customers overall evaluation about the advertisement
is Very good.
Series1
60 53
50
40
27 27 28
30
20
10
0
B rand name M ahendrasingh Dialo uge P resentatio n
Dho ni
From the graph it interpret that majority people remember Mahendrasingh Dhoni
As Mahendrasingh Dhoni being the brand ambassador of Videocon up to what extent this
fact affects your buying decision?
Low1 2 3 4 5High
35
30
25
20
15 29
10 23
17
5 8
5
0
1 2 3 4 5
From the above graph it interpret that majority people rate this fact as 4 means buying
decision will be molded but not just because of Dhoni in the advertisement.
Yes
No
No
5%
Yes
95%
From the above graph it interpret that 95% people agreed with the statement
IV] Shahrukh Khan Advertisement
Yes
No
No
10%
Yes
90%
From the above graph it interpret that 90% people from sample seen Shahrukh Khan
Advertisement.
Please choose the score you think best describes this advertisement on a scale of 1-5
1 2
2 3
5 2%
15% 4
26% 5
3
18%
4
39%
From the graph it interpret that 41% viewers are agree with the above statement and 26% are
strongly agreed that content of the advertisement is good.
1
1 2 2
0% 12% 3
4
3 5
10%
5
48%
4
30%
From the graph it interpret that 48% viewers are saying that presentation of the advertisement
is very good followed by 30%.
I paid more attention to the picture in the advertisement
Strongly disagree 1 2 3 4 5 strongly agree
1
1 2
3% 2 3
14% 4
5
5
34%
3
21%
4
28%
From the graph it interprets 35% viewers paid strong attention towards picture in the
advertisements.
1
1
2
3% 2 3
20% 4
5 5
36%
3
14%
4
27%
From the graph it interprets that around 36% paid more attention towards headline and text in
the advertisement, followed by 27% means headline and text is very good.
1 2
2
3
1% 10% 4
3 5
11%
5
45%
4
33%
From the graph it interpret that majority people rated the advertisement as Very good
What factors from the advertisement do you remember?
Series1
70 59
60
50 41
40 27 25
30
20
10
0
From the graph it interpret that majority people remember Shahrukh Khan in the overall
advertisement means image recalling of shahrukh is very high.
As Shahrukh Khan being the brand ambassador of Videocon up to what extent this fact
affects your buying decision?
Low1 2 3 4 5High
35
30
25
20
15 32
26
10 20
5 8
4
0
1 2 3 4 5
From the above graph it interpret that majority people 32% rate that shahrukh in the
advertisement of the company affects positively on there buying decisions, but at the same
time this is not the only criteria of purchase in consumer durable
Yes
No
No
4%
Yes
96%
From the above graph it interpret that 96% people agreed with the statement
Which were the most memorable advertisement among this four?
Series1
40 35
35 31
30
25 20
20 14
15
10
5
0
Gayatri Slim&Trim Dhoni Shahrukh
Mantra television Khan
Advertisements
From the above graph it interpret that Gayatri Mantra Advertisement is the most memorable
advertisement among these four
. What are the things come to your mind when you think about Videocon brand?
60
40
20
0
V Fe M Pi S Af S Af Of wa Pr In A
Series1 58 42 49 42 36 39 41 19 18 44 9 26 8
From the above graph it interpret that the things come to mind when think about Videocon
Brand are Value for money, Multinational Company & Warranty
`
FINDINGS
2. Print Advertisement
3. TV Advertisements
Among the four advertisements taken for the research, Shahrukh Khan Advertisement
is having high exposure rate.
Dhoni Advertisement
According to the survey most memorable advertisement among these four is Gayatri
mantra advertisement
The first three things come to the mind of customer when they think about Videocon
brand are Value for money, Multinational Company & Warranty.
Overall study analysis shows that Videocon advertisement helped company in its
brand positioning as Indian Multi national, so the purpose behind it seems to be full field.
For the last open end question Any suggestions on Videocon advertisement following
After detail study and analysis of research data we are recommending following suggestions
to the company:-
The advertisements should shown on DD National channels with the same frequency
so that general public can aware about the product/brand
Videocon should make different regions & should bring regional celebrities in
advertisements so more people attract towards advertisements
Place focus on the product rather than Stars & the most important thing the stars
should correctly represent the company
Advertisements should be more explanative of product features & after sales service
Give more emphasis on other games also beside cricket also along with Dhoni
company can use Sania Mirza as youth Icon of India
There should be more advertisements of Shahrukh Khan to encash his popularity
Advertisements should be Innovative
Improvement in sound quality
Improvement in picture quality
Improvement in Headlines & Text
For the perfect review company should DAGMAR approach and evaluation should be
carried out regularly on every advertisement so the content in advertisement copy can be
changed I the market demands it.
Product specific advertisements are required and it should be adjusted seasonally.
QUESTIONNAIRE
Personal Details:
Occupation:
1. Among all the products, which product are you planning to buy?
4. Please rank the factors that help you to decide to buy Videocon product?
(1 = high, 5 = low)
Advertisement
Features
Brand Name
After sale service
Price
Yes No
A] If yes, in which of the following news-paper, you have seen the advertisement of
Videocon ?
Times of India
Maharashtra Times
Economic Times
Dainik Lokmat
Sakal
B] In which of the following magazine, you have seen the advertisement of Videocon ?
Business World
Outlook Business
Business India
Dalal Street
Outlook Money
c] Please rank, which of the following would be most likely to draw your attention to an
advertisement?
( 1= Highest,7=Lowest )
Brand Name
Product photograph
Prominent display of special offer
Use of co lour
Innovative design
Information about product
Other (Please specify) c]
Excellent
Good
Average
Poor
Gayatri Mantra Advertisement
Have you seen Gayatri-Mantra advertisement of Videocon on entertainment & news
channels?
Yes No
If Yes,
How do you feel about the following statement? Please choose the score you think best
describing this advertisement on a scale of 1-5.
If Yes,
How do you feel about the following statement? Please choose the score you think best
describing this advertisement on a scale of 1-5.
1) To what extent do you like this advertisement?
Not at all 1 2 3 4 5 very much
DHONI ADVERTISEMENT
Have you seen this advertisement on entertainment & news channels?
Yes No
If Yes,
How do you feel about the following statement? Please choose the score you think best
describing this advertisement on a scale of 1-5.
Low1 2 3 4 5High
Yes No
If Yes,
How do you feel about the following statement? Please choose the score you think best
describing this advertisement on a scale of 1-5.
a]Shahrukh Khan
b] Brand Name
c] Different manufacturing places of Videocon
d] Latest Technology
11. Which were the most memorable advertisement among this four?
a] Gayatri Mantra
b] Slim & Trim Television
c] Dhoni advertisement.
d] Shahrukh Khan advertisement.
12. What are the things come to your mind when you think about Videocon brand?
Value for money
Features
Multinational company
Picture quality
Sound quality
Affordable
Satisfaction
After sales service
Offer/ scheme
Warranty
Premium
Innovation
Aesthetics
THNK Q
BIBLIOGRAPHY
Marketing Management
- Philip Kotler Garry Armstrong 11th edition
Adevrtising Management
- Jaishri Jethwaney , Sruti Jain
Research Methodology
- N. Thanulingom
Marketing Research
- M.V.Kulkarni
Manuals:
Videocon Industries Ltd.
Wesites:
www.videoconworld.com
www.videoconindustries.com
www.marketingprof.com
www.agencyfaqs.com
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