Introduction of the Industry

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

Global Players in Indian TV Industry 1. LG 2. Videocon 3. Sony 4. Samsung 5. Onida 6. Philips In Indian industry the Korean companies are clearly dominating the market. Videocon Profile: Videocon deems it a privilege that it is in a position to prolong instances of joy and spirit. And lend much needed variety and flair in everyone's life. An Indian multinational, a global force in display technologies and a group on the threshold of even bigger things. There are new horizons to breach, new frontiers to conquer and simply no pause buttons on the Videocon play. Expect the unexpected, the uncharted and the unlimited. Keep watching.

Corporate Profile The Videocon group emerges as a USD 2.5 Billion global conglomerate continuing to set trends in every sphere of its activities from a conference room sized assembly line in 1979. It started life in 1984 as a branded manufacturer of consumer durables. In 1995, it ventured in to contract manufacturing and then oil. The consumer electronics and oil businesses were separate entities with separate balance sheets. Things changed in 2005 when Videocon merged its oil subsidiary, petrocon, in to the flagship VIL (Videocon Industries Limited). Now it has a balance sheet that has the combined number both consumer electronics as well as oil. It is clear that this was primarily done to use oil revenues to shore up the sagging consumer electronics business. Nevertheless, it is unusual. This move has raised questions about whether Videocon is trying out too many things. An indication of market sentiment can be got from the fact that its market cap of Rs 9,855 crores is less than even its estimated sales (put out by domestic brokerages) of Rs 11,444 crores in FY06 (it has an October-September financial calendar). One of the worlds largest and 3 most acknowledged CPT manufacturer in the world, the group is forging ahead with production and development of latest technologies like Super True Flat CPT, Slim CPT, Extra Slim CPT and HD 16:9 format CPT.

Some Big Facts

Product Range: Width = 5 (Plasma, LCD, Slim, Flat, Conventional) 18 In the product mix of Videocon, it is having 37 different models, which gives them their product line Depth.

PLASMA Plasma television technology is similar to the technology used in a fluorescent light bulb. The display itself consists of cells. Within each cell two glass panels Plasma LCD Slim Flat Conventional 50PDP 42 LCD 29 slim 29 flat 21 FFST 42PDP 32 LCD 21 slim 21 flat 20 conv 26 LCD 15 flat 14 conv
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20 LCD 19 LCD

Length 25233 19 are separated by a narrow gap in which neon-xenon gas is injected and sealed in plasma form during the manufacturing process. The main advantage of Plasma over CRT technology is that, by utilizing a sealed cell with charged plasma for each pixel, the need for a scanning electron beam in eliminated, which, in turn, eliminates the need for a large Cathode Ray Tube to produce video images. This is why traditional televisions are shaped more like boxes and Plasma televisions are thin and flat.

Advantages of Plasma Television: Largest Screen Formats. Superior Contrasts. Versatile. Capable Of Displaying Full HDTV & Dtv Signal. Capable Of Displaying Xga, Svga & Vga Pc Signal. Wide Viewing Angle. Wide Rage Of Richer Color Over 16 Million. Superb Realistic Images. Less Expensive Than Lcds. Life More Than 30,000 Hours. Wide Screen Aspect Ratio around 16:9. Perfect Flat Screen. Uniform Screen Brightness. Slim & Space Saving Design. 50" PDP Integra 50
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10000:1 Contrast Ratio 3:2 & 2:2 Pull Down HDMI Compatible 3-D Video Noise Reduction PC Input 42" PDP 16.77 Million Color 10000:1 Contrast Ratio 3.2 & 2:2 Pull Down 20 1500cd/m2 Brightness HDMI Compatible 3-D Video Noise Reduction

LCD The flabs are out and now technology has switched over to sleek and slim products, LCD being the prominent amongst them. LCD technology is the recent breakthrough in consumer electronics and because of its esteemed advantages this segment is growing day by day. Videocon are launching this range under the sub brand Integra. INTEGRA term indicates the integration of various systems connectivity with LCDTV. This is an integration of best sound quality and excellent picture quality. What is TFT-LCD? Meaning of this term is Thin Film TransistorLiquid Crystal Display. TFT technology used in this category offers the best image quality in flat panels. This technology is also called as Active Matrix Technology. 40" LCD 32" LCD 26" LCD 20" LCD 19" LCD
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Slim With Continuous Research & Development Videocon brings a revolutionary advancement in physics & brings new Slim & Trim Television. 21 The Most significant feature of the Slim & Trim Television is its one kind of super slim picture tube technology. This has enables us to make the TV 42% Slimmer. Slim Picture tube is a product with reduced depth providing the TV and monitor producers with opportunity to design Slim, flat and stylish TVs comparable to plasma or LCD panels maintaining Good picture Quality 29" SLIM 21" SLIM Flat Videocon Bada Woofer with Surrounds Bass Technology Bass Amplification by Dynamic Alignment (BADA) woofer is a revolutionary technology that offers a new sound to create an unbelievable sound space Videocon unique Bazoomba Woofer Technology Videocon's superior Bazoomba Woofer Technology incorporates a unique conjugate arrangement of Woofer motors that ensures rich bass reproduction. The Bazoomba Woofer Technology Enables the generation of the lowest bass frequencies from a small enclosure (Bazoomba tube). Enables cleaner and tighter bass reproduction due to acoustic cancellation of distortion in the even harmonics 29" TFT 21" TFT 15" TFT Conventional TV 21" FFST 20" CONV 14" CONV

Product Details
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Product Mix Product mix is the set of all product and items a particular seller offers for sale. Product mix consists of various product lines. The width of a product mix refers to how many different product lines the company carries. The Videocon television has product mix width of five lines. I.e. plasma, LCD, Slim, flat and Conventional.

The length of a product mix refers to the total number of items in the mix. I.e. for the line of LCD the length is 2 as it has two items 50 PDP and 42 PDP. The depth of the product mix refers to how many variants are offered of each product in the line.i.e. For LCD the depth will be 2. As Videocon is offering only one product in 50 PDP and 42 PDP. The three product-mix dimensions permit the company to expand its business in three ways. It can add new product lines, thus widening its product mix. It can lengthen each product lines. It can add more product variants to each product and deepen its product mix. Pricing The pricing of the Videocons various models is as following. Plasma TV : Rs. 59,990 - 2, 40,000 LCD TV : Rs. 28,400 89,900 Slim TV : Rs. 10,400 18,900 Flat TV : Rs. 5,500 18,400 Conventional TV : Rs. 4,600 - 9,500 Place Videocon has its presence all throughout India. They have their presence in 25 states and each state has at least 2 divisions per state. In total they are having 78 divisions.Videocon has around 1800 dealers in India. They are having 96 service centers across India. Promotional Activities Focusing on LCD, Plasma and 29 Flat TVs since 2006. By institutional selling. Company used both TVC as well as print media for promotion. The company is using outdoor media promotions in hording and bus
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shelters to high light the feature packed advantages. Major tie ups in the background IIT alumni/ Videocon Santos ham film awards 2006 with ZEE and ICC Cricket champions trophy. 23 Seasonal offers Trip to Germany during FIFA world cup Videocon bonanza offer ( har din diwali) during diwali Chance to win car, motor bike and LCD TV's. Brand ambassador Shahrukh Khan M S Dhoni Total spending of 80 crores in 2006 on advertisements.( 35 crores for CTV) Sponsorship Videocon is inspired heavily by the uplifting values perpetuated by sports. Its ability to draw people together irrespective of differences in race, gender, religion and country. Unity of spirit and purpose is ultimately what builds bridges between diverse cultures. This is the core belief of a group that today has operations spread over a cross-cultural milieu worldwide. Also, at the heart of sports is fair play, a virtue which enjoys exalted status among values cherished by Videocon. The group has been deeply involved in supporting sports. Its sponsorship of cricketing events across the globe underlies its commitment and passion for sports as well as its goal to connect with a global audience. It is a matter of pride that Videocon's Audio Visual products entertain enthusiasts and fans passionate about watching sports worldwide. A breakdown of the statement above reveals a means and end approach, where the end is articulated at the beginning with the means linked to it. Their famous tag line One of the only companies in the world to convert sand to TV SEGMENTATION, TARGETING & POSITIONING (STP) SEGMENTATION:
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Market segmentation is the process in marketing of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs. Because each segment is fairly homogeneous in their needs and attitudes, they are likely to respond similarly to a given marketing strategy. They are likely to have similar feelings and ideas about a marketing mix comprised of a given 14 product or service, sold at a given price, distributed in a certain way and promoted in a certain way. The process of segmentation is distinct from targeting (choosing which segments to address) and positioning (designing an appropriate marketing mix for each segment). The overall intent is to identify groups of similar customers and potential customers; to prioritize the groups to address; to understand their behavior; and to respond with appropriate marketing strategies that satisfy the different preferences of each chosen segment. Segments based on Income Plasma: Income group of more than 50,000 LCD: Income bracket of Rs 20,000 and above Slim: Consumer in the income bracket of Rs 9000-15000 Flat: Consumer in the income bracket of 7000-12000 Conventional: income bracket of Rs 3000-6000 Segments based on social class Plasma: rich class LCD: upper middle class and rich class Slim: middle class Flat: middle and lower middle class Conventional: lower economic class. Benefit Segmentation: Conventional, Flat screen Slim, LCD, and Plasma can also segmented on the basis of benefits that an end consumer would receive from them. User Status: TV market can be classified into non users of TV and potential users in term of graduating to a higher segment like slim, LCD,Plasma from basic conventional TV
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Loyalty status: On the basis of Loyalty status Hardcore Loyal: brand loyal to Videocon for a long time in terms of purchasing products of Videocon Shifting Loyal: who shift loyalty from other brands to another Switchers: not loyal to any brands so attract them to Videocon and convert they brand loyal. 15 TARGETING: Once the firm has identified its marketing-segment opportunities, it has to decide how many and which ones to target. Marketers are increasingly combining several variables in an effort to identify smaller, better-defined target groups. The decisions involved in targeting strategy include: * Which segments to target? * How many products to offer * Which products to offer in which segments In premium segments like flat screens and FDPs the growth in sales has been many times the industry growth. More importantly, high end product sales are no longer restricted to metros. Consumer in tier-2 cities seems to be as evolved in lifestyle needs. The consumer profile, too, has changed. Higher disposable incomes, greater aspirations and younger demographic have increased demands for the technologies. And Videocon is targeting this segment. POSITIONING: Positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. It is the 'relative competitive comparison' their product occupies in a given market as perceived by the target market. Once the competitive frame of reference for positioning has been fixed by defining the customer target market and nature of competition, marketers can define the appropriate points-of-difference and points-of parity associations. Points of Parity (POPs) are associations that are not necessarily unique to the brand but may infact be shared with other brands. They represent necessary-but not necessarily sufficient-conditions for brand choice.
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Videocon's Points-of-Parity are good quality Picture and good sound. 16 Points-of-Difference (PODs) are attributes or benefits consumers strongly associates with a brand, positively evaluate, and believe that they could not find to the same extent with a competitive brand. Videocon's POD is the quality product with low cost. With the strong backward integration Videocon can provide the products with low cost. Thus, Videocon is positioned itself as a reliable and value-for-money product.

Videocon Strategy To compete with the other brands they had came out with DTH system, which means direct to home service. Growth will be driven by enhanced purchasing power, the digital broadcast (DTH, IPTV, STB cable) transition as well as consumer awareness and affordability of flat panel TVs. Competitors strategies Differentiation Strategy adopted by other players: LEADER-LG Product localization is a key strategy used by LG. * LG came out with Hindi and regional language menus on its TV. * Introduced the low-priced Cineplus and Sampoorna range for the rural markets. * LG was the first brand to introduce gaming in CTVs. In continuation of its association with cricket, LG introduced the cricket game in CTVs . Onida Onidas differentiation strategy is based on its brand based advertising rather than feature based advertising. They used its brand mascot The Onida Devil and its punch line Neighbors Envy Owners Pride to create Brand awareness of their product. Where its competitors were focusing on advertising of the features of their
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products, Onida has concentrated only on their Brand. The Devil helped Onida gain substantial market share and brand recall among the customers. Philips Philips Differentiation Strategy is their Simplicity Led Design. Philips believes in the unity of form and function. Their technology is easy to use. In Philipss world, they are trying to improve the consumers life. Philips is known for its consumer insight and empathy. Therefore, their differentiation strategy includes making technology simple to use.

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