Consumer durables

MNC v/s LOCO

Pre se n te d b y -
K a lp e sh N a h a ta -3 8 K ira n S h in d e
-53
 MNC
– Horizontally integrated (example:
McDonald)


– Vertically integrated (example:

Hyundai )
–

– Diversified multinationaL (example:

Hilton Hotels )
–
– Micro-multinationals (Google, Yahoo,
EBay, and
Amazon)
 Why MNC In India ?
– India’s large market potential
– India presents a remarkable business
opportunity by virtue of its sheer
size and growth
– Labor competiveness
– FDI attractiveness
– India’s vast population is increasing
its purchasing power
– India is also emerging as the
manufacturing and sourcing location
of choice for various industries
 Question


 Which is first MNC in

india?
MNC V/S LOCO
 Problems brought by
MNC
• The host county is likely to lose its
economic sovereignty
• The host nation may also experience
some loss of control over its own
economy
• Feeling that labour is being exploited by
the MNC/ Outsourcing
• The problem of Dumping
• Example – Chinese low quality
products in Indian market
Why Indian companies lost
its market share to MNC’s
• They lagged behind in technology
• They offered a small range of
products
• Provided less margin to dealers
• Less number of outlets.
• Poor after sales services
• EX:-Most of the BPL galleries were
transformed bythe dealers into a
gallery with a range ofproducts
from different manufacturers
 Benefits from MNC
• Transfer of technology and capital.
• Better utilization of available
resources.
• High quality managerial talent.
• Encourages the world unity and all
resulting in world harmony.
• Inflow of income from overseas
profits, royalties, licensing fees and
management contracts
COMPETITION OVERVIEW
Sales of consumer electronic
product
All values are in ‘000
Television set sales ( No. are
in mn)
 Main players in the
Indian TV market
•
• Indian: BPL (18), Onida (41),
Videocon (67)
• European: Philips (47)
• American: Thomson (20)
• Korean: Samsung (102), LG (122)
• Chinese: Akai (30), Sansui (56)
• Japanese: Sony(69),
Panasonic (49), Sharp (19
 LG Videocon Samsung

Price above 3 0 7
200000
50000-200000 31 19 33

10000-50000 47 24 39

Less than 10000 41 24 23

Plasma 14 1 13

lcd 45 22 50
G a m e ca p a b ility 58 43 33
Audio Output 59 47 24
( PMPO ) 201 to
1,000
 Refrigerators
•
• Indian -Godrej (51),Videocon (23)
• Swedish-Electrolux (24)
• China - Haier (29)
• Japan - Hitachi (8)
• Korea - LG (57) ,Samsung (63)
•
•
•
 Refrigerator
• Leader LG
• Challenger
Whirlpool
• Follower Samsung
•
•
•


Source: CRISIL Research,



Industry
 LG Videocon Samsung
Lesss than 35 21 33
20000
20000-80000 16 2 25
Above 80000 6 0 5
Defrosting 15 0 0
System
Automatic
Defrosting 0 11 12
System
Semi Automatic
Quick freezing 14 1 13
Ice dispenser 10 0 10
Gross capacity 11 07 11
200 lit or less
Clean back 42 17 63
Awareness about videocon, SAMSUNG & LG by
Customers
• It is clear that most of the customers
(62%) of Videocon came to know
about Videocon through TV
• we can infer that Videocon is doing
positioning through TV
advertisements rather than through
print media ad and hoardings and
billboards.
Why videocon, SAMSUNG or
LG?
(Given in percentage)
• we observe here that service is not
good at videocon
•
• Hence, we can infer that LG &
Samsung are strong brand and
have better quality.
•
• Also, LG & Samsung products are
more expensive than Videocon
As a response to the rapidly changing digital era, LG Electronics is
aggressively pursuing global partnership in selected business and technology
areas by establishing a wide ranging strategic
alliance with world leading companies
Various brands which are
takeover by Videocon
vision
 People’s con

“… Insightful marketing …”
“… Inspired thinking about the
future …”
Ad fight
CONCLUSION