MARKETING ANALYSIS

ON

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award of
Bachelors
of Business Administrative
(BBA)

Guru Gobind Singh Indraprastha University,

Delhi

Faculty Guide

Submitted By:

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ACKNOWLEGEMENT

Project work is never the work of an individual. It is more a combination of ideas, suggestions,
and contribution and work involving many jobs. One of the most important parts of writing a
report is the opportunity to thank all those who have contributed to it. The list of expression of
thanks, no matter how extensive, is always incomplete and inadequate. This acknowledgement is
no exception.
I want to express my sincere gratitude towards who provided me with her expert guidance and
invaluable suggestion.
I would like to thank my classmates and all those who directly or indirectly helped me in one or
the other way in the successful completion of the projec

TABLE OF CONTENT
Chapter1 Conceptual Discussion(Theoretical Background)

1.

Nature of business.

2. Types & ownership pattern.

3. Organization structure.
4. Production structure.
5. Organizational strategies
Chapter 2

Introduction
2.1. Overview of Industry as whole
2.2. Profile of the Organization
2.3. Problems of the Organization
2.4. Competition Information
2.5. S.W.O.T Analysis of the Organization

Chapter 3 Research Methodology

2.1 Overview of the Project
2.2. Objective of Studies
2.3. Purpose of the Study
2.4 Data Sources
Chapter 4 Analysis / Study of topic

2.1

Performance Analysis of the Company.

2.2 Market share/growth rate of company.

Chapter 5 Findings/ Observations

1. Objective of the study.

2. Research Methodology
3.

Questionnaire Methodology

Chapter 6 - Conclusion

Annexure

-#-

Bibliography

CHAPTER 1: INTRODUCTION OF COMPANY:-

INTRODUCTION
Videocon Industries Ltd. was one of the initials companies that made it to the World.
Videocon Electricals captured the initial Indian Electrical market and topped the
charts for its products such as Refrigerators, television etc. before other players such
as Samsung, Whirlpool etc .entered Indian market. Videocon was one of the first
Electronic Company to Collaborate with Japanese Toshiba Ltd as early as 1985.
It is one of the biggest Indian Electrical brands not only in India but also globally.
Indeed, Videocon is one of the fastest paced Electrical Products worldwide. Videocon
thus posed an exciting opportunity to study a brand that is automatically associated
with youth and technology.
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.

1.1 NATURE OF BUSINESS

Manufacturer & Exporter

of Conventional Colour TV and LCD TV Receiver Sets, D2h Set

Top Box, VCD/MP3 Players, Air Coolers, Music Systems, Airconditioners, Home Theaters like
Refrigerators, Automatic & Semi Automatic Washing Machines, Dish Washers, Microwave Ovens,
Mixer, Grinders and Water Purifier like TV, DVD/MP3 & Audio Components, Glass Shells for
Colour Picture Tubes, Populated PCBs, Tunners, Monitors for Computer, Compressors and other
Electronic Assemblies and Sub-Assemblies like Digital Diaries, Kiddy PC, Data Projector, Power
Inverter, Digital MP3 Player and Palm Top like ISP, Content and Web Solutions.Crude Oil
Extraction

50000

Barrels

per

Day.

1050MW Power Generation. Videocon LCD TV, Videocon Air Conditioners, Videocon
Refrigerators, Videocon

Washing Machine.

1.2 Type and Ownership Pattern

Figure1.1:

Consumer

manufacturing in India

Electronics,

Home

Appliances

&

Compressor

Videocon enjoys a pre-eminent position in terms of sales and customer satisfaction in

many of our consumer products like Color 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. Videocon has the largest distributed
manufacturing base across India 12 facilities. It has the Capacity to manufacture 4
million CTVs, 2.5 lacs washing machines, 1 mn. DVD players, 4.8 mn refrigerators.

Display

industry

audit

components

With the Thomson acquisition Videocon has emerged as one of the largest Color
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.

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 internationaltechnology to suit Indian needs, and crafting it to
improve the quality of life as million of satisfied customers will agree.

Figure1.2: Logo of Videocon

The new symbol of Videocon asserts its passion for global impact, and the two Es on
either side represent the Groups wide spectrum of interests ranging from Electronics
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.

1.3 Organisational structure of Videocon

Figure1.3: Organisational structure of Videocon

1.4 Production structure

Cost cutting Videocon was better positioned to shift the activities to low-cost
locations and also it could integrate the operations with the glass panel facility in
India with the CPT manufacturing facilities acquired from Thomson S.A. Videocon
wanted to leverage its position in the existing parts of the business and this acquisition
would give it a strong negotiation position and could reduce impact of glass pricing
volatility. Videocon could also reduce the costs by upgrading and improving the
existing production lines.
Vertical Integration The acquisition helped Videocon in vertically integrating its
existing glass-shell business where it had been enjoying substantially high margins.[8]
Videocons glass division had the largest glass shell plant in a single location. This
gave the company an unrivalled advantage in terms of economies of scale and a

leadership position in the glass shell industry. The acquisition also gave Videocon a
ready-market for its glass business and it was part of Videocons long-term strategy to
have a global vertically-integrated manufacturing facility.
Rationalization of Product Profile Videocon modified its product profile to cater to
the changing market needs like moving away from very large size picture tubes to
smaller ones.
Apart from the overall strategy Videocon also had a plan on the technological front. It
wanted to improve the setup for the production line and line speed post-merger. Its
focus was to increase sales while reducing the costs and thereby improving the
productivity of the existing line. The company also wanted to foray in a big way into
LCD panels back-end assembly. On the sales front the company wanted to leverage
on the existing clients of Thomson and build relation as a preferred supplier to
maximise sales. Also, Videocon could benefit from OEM CTV business with the help
of Videocons CTV division, invest for new models and introduction of new
technologies.
Videocon has not been able to turn the plant around in Italy still. However it is getting
support from the local governments (which want to prevent job cuts) in form of
grants. The government is in fact trying to set up a Greenfield venture in form of a
LCD manufacturing facility in partnership with Videocon. The banks are also
supporting Videocon and with help from all these quarters Videocon expects to turn
around the plant in Italy.[13] The Thomson plant has not turned around in Mexico as
well and in fact production has been reduced over there.InPoland,the situation is more
promising and Videocon hopes that plant over there will get in black in the very near
future.[14] However the surprise has been in the Chinese market .Despite facing a
highly competitive market Videocon has managed to turn a plant around while the
other is on its way. In China Videocon is adopting a different strategy for
manufacturing CTVs as the local players dominate the market .It plans to supply these
players by taking advantage of low-cost nature of mainland(the number targeted by it
about 6 million CPT,s)

1.5 VIDEOCON STRATEGIES

1.5.1 Multi-brand strategy
Videocon International was the first Indian company to adopt the strategy of
multi-brands. Apart from its mid-priced brand Videocon, the company now
hawks Toshiba, a premium brand, and the low-priced brands Akai and Sansui.
The multi branding technology paid off as Videocon managed to hold on to a
combined market share of around 19.6 percent, with LG at 25.9 percent and
Samsung at around 13.8 percent.
Overall, the shift in the power to trade is probably one of the defining
developments. It is important since the TV companies themselves have taken it
seriously and embarked on crafting longer-term strategies to accommodate this
development. The effectiveness of their strategy and the responses of the other
players promise to deliver a few more years of enterprising developments in
the Indian TV market.

1.5.2 Backward Integration

Videocon integrated backwards by getting into manufacture of components
such as electron guns, metal parts and deflection yokes for CTVs and
compressors, and electric motors and plastic components for households
appliances such as washing machines, refrigerators and Air conditioners. The
group integrated further to get in to manufacture of glass panels and funnels,
the key components for the manufacture of color picture tubes.
Videocon enjoys a unique synergy in the global CTV business from glass to
CRT (Cathode Ray tubes) to CTVs. - (From Sand to CTV). Together with

other components for households appliances. This high degree of backward

integration bestows upon the company a unique benefit over competition.

Chapter 2
Introduction
2.1 Industry overview
COMPANYS PROFILE

2.2. Profile of the Organization

Videocon knows the pros of consumer electronics manufacturing. The Indian conglomerate makes
and distributes a variety of consumer electronics and home appliances including 3D and LCD
TVs, washing machines, air conditioners, refrigerators, and mobile phones and tablets. Its
products are sold at retailers throughout India. In addition to electronics, Videocon is active in the
oil and gas sector, producing some 50,000 barrels of oil a day from its Ravva field, and
participates in power generation projects in India. The diversified company got its start in 1979.

Today the group operates through 4 key sectors:

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. Refrigerator
manufacturing is further supported by our in house compressor manufacturing
technology in Bangalore.

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 Italy, Poland and China,
continuing to lead through new innovative technologies like slim CPT, extra slim CPT
and High Definition 16:9 format CPT.

Color 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 sector globally.

2.3. Problems of the Organization

Figure2.2: Videocon V1688 Twist & Turn available in market

Description:
Videocon V1688 Twist &
Turn is the new stylish
and well designed midrange mobile phone by
Videocon which has just
been launched in the market. The mobile comes loaded with lots of
attractive and impressive features as well as dimension. This mobile is
priced at Rs. 6,995/- in Indian market which is affordable than other mobiles
having

same

features.

Videocon V1688 Twist & Turn is the 90 degree roted full QWERTY
keyboard impressive mobile phone that has 3.2 inches touchscreen display
screen. This display screen of the device generates resolution of 320x480
that

shows

pictures

of

better

quality.

This amazing designed mid-range mobile has all the music features such as
MP3 and MP4 with formats of 3GP, AVI, RMVB video etc. It is boasted
with a 2 mega pixel of camera that can capture photographs at resolution of
1600x1200 pixels and video recording at format of 3GP and 15fps. It is also
loaded with dual speakers for loud music and a 3.5 mm audio jack.

The mobile supports Java language, EDGE & GPRS and stereo Bluetooth
streaming (A2DP), while comes pre-loaded of popular social networking
sites like MSN, Yahoo, Facebook and Skype. The mobile comes preinstalled a 2GB microSD while its memory can be upgraded up to 4GB
through using a memory card.

The mobile, Videocon V1688 Twist & Turn, supports dual SIM
(GSM+GSM) that provides excellent networking facility. This impressive
handset is corporated with a solid 1000 mAh battery that allows long talk
and standby time. The mobile is available in Red, Yellow and Silver colour
shades.

2.4. Competition Information

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

major-

LG, 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

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

factors-

industry 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.

2.5. S.W.O.T Analysis of the Organization

SWOT ANALYSIS
The SWOT is a strategic planning tool to evaluate Strength(S) Weakness(W)
Opportunities(O) & Threats(T) involved in a project, in a business venture or in any
other situation requiring a decision. The SWOT analysis is to explained with help of
following diagram

Strengths:
1. Technological skills
2. Leading Brands
3. Distribution Channels
4. Customer Loyalty/ Relationships
5. Production Qualtiy
6. Scale
7. Management

Weaknesses:
1. Absence of important skills
2. Weak brands

3. Poor access to distribution

4. Low customer retention
5. Unreliable product/ service
6. Sub-scale
7. Management

Opportunities:
1. Changing customer tastes
2. Technological Advances
3. Change in government politics
4. Low personal taxes
5. Change in population age
6. New distribution channel

Threats:
1. Changing customer base
2. Closing of geographic markets
3. Technological advances
4. Changes in government politics
5. Tax increases
6. Change in population age
7. New distribution channels

Chapter 3 Research Methodology

2.1 Overview of the Project

PRODUCTS OF COMPANY
CONSUMER ELECTRONICS
Figure 3.1: Figure of Plasma

Figure 3.2: Figure of Split A/C

Figure 3.3: Figure of Window A/C

Figure 3.4: Figure of Mobile Phone

Figure 3.5: Figure of Washing Machine

Figure 3.6: Figure of Refrigerator

Figure 3.7: Figure of Home Theater

Figure 3.8: Figure of Dish

Figure 3.9: Figure of LCD Television

TV

3.2 4Ps
The 4Ps includes the Product, Price, Place and promotion.

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.

Width, Length & Depth

Width = 5 (Plasma, LCD, Slim, Flat, Conventional)

Plasma

LCD

Slim

Flat

Conventional

50PDP42 LCD

29 slim

29 flat

21 FFST

42PDP32 LCD

21 slim

21 flat

20conv

26 LCD

15 flat

14conv

20 LCD
19 LCD
Length

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 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
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
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

Slim
With Continuous Research & Development, Videocon brings a revolutionary
advancement in physics & brings new Slim & Trim Television.
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

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
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.

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'

OBJECTIVE OF THE STUDY

The objective of the project is further classified into primary and
secondary objective.

Primary objective:-

Find out the market size of refrigerator (in percentages) of different brands
in N C R . F o r t h i s p u r p o s e , t h e r e s e a r c h e r h a s t o d o a s u r v e y b y
i n t e r v i e w i n g t h e households and finding out the market share of Videocon
brand in accordance with other brands.

Secondary objective:To know where does the Videocon brand of refrigerator stands in comparison to
other brand and what are the various aspects where it needs to improve in order to
remain in the market and compete with other brands.

Chapter 4

Analysis / Study of topic

KEY

LEARNINGS

FROM

THE

COMPANY AND

RECOMMENDATIONS:4.1 Analysis of Net Profit

EARNINGS: Videocon, July- September net profit Rs.1.6 bln, up 7% on year Videocon Industries
Ltd Thursday reported net profit of Rs. 1.6 billion for Jul-Sep, up 7.14% from a year ago.In a
news release, the company said its net sales in the quarter were Rs. 29.85 billion, up 14% from a
year ago.Total expenditure for the quarter stood at Rs. 25.95 billion, up 14.7% from a year
ago.Raw material cost expanded 17.6% to Rs. 10 billion and employee cost stood at Rs. 499.4
million, up 47.8% from a year ago.Revenue from the consumer electronics and home appliances
segment was at Rs. 27.31 billion, up 18.6% from a year ago and revenue from crude oil and

natural gas segment was down 20.3% at Rs. 2.54 billion.The company said it has extended its
current accounting year by three months and thus the current year will be of 15 months beginning
Oct

1,

2009

and

ending

Sep ' 09

Sep ' 08

Dec

31,

2010.

Profit loss account

Sep ' 07

Sep ' 06

Sep ' 05

Income
Operating income

9,163.04

9,753.65

8,285.42

7,218.82

5,460.25

5,614.40
773.74
126.42
550.04
224.47
7,289.07
1,873.97
27.39
1,901.37
665.75
577.15
658.46
177.68
480.78
-80.12
73.68
474.34
2,536.34
46.25
3.68
8.49
2,477.92

5,291.05
1,285.85
115.82
505.07
163.62
7,361.40
2,392.25
71.92
2,464.18
431.86
660.21
1,372.11
312.67
1,059.43
-205.14
0.72
855.01
2,306.65
22.95
3.68
4.53
2,275.49

4,954.79
988.23
105.35
470.62
94.21
6,613.19
1,672.24
71.55
1,743.79
337.17
418.39
988.23
227.68
760.55
94.67
3.54
858.76
1,696.84
80.30
3.68
14.27
1,598.59

4,162.74
986.28
94.70
412.12
222.71
5,878.56
1,340.26
127.21
1,467.47
254.75
484.00
728.72
95.16
633.56
-139.82
0.30
494.04
932.95
77.35
3.39
11.32
840.89

3,070.27
916.22
49.53
360.47
207.96
4,604.44
855.81
35.66
891.47
244.96
320.15
326.36
-166.03
492.40
-152.50
2.36
342.26
602.36
55.19
2.50
8.09
536.58

Expenses
Material consumed
Manufacturing expenses
Personnel expenses
Selling expenses
Adminstrative expenses
Expenses capitalised
Cost of sales
Operating profit
Other recurring income
Adjusted PBDIT
Financial expenses
Depreciation
Other write offs
Adjusted PBT
Tax charges
Adjusted PAT
Non recurring items
Other non cash adjustments
Reported net profit
Earnigs before appropriation
Equity dividend
Preference dividend
Dividend tax
Retained earnings

Profit and Loss account of this firm show that operating income of this firm is
increasing. It was 5460.25 in Sept 2005, but on Sept 2006 it increasing to 7218.82.
This increase shows the growth of this firm. On the other hand, expenses Sept 2005 is
3070.27 Rs. it was also increasing to 4162.74. But expense of this firm continuously
increasing on the other hand operating income increasing in Sept 2008- 2009 by
590.62.it show that firm growing rate falling. In short we can say that firm
expenditure rate is more than income rate. it shows that firm is doing strongly in the
market.

Throughout the balance sheet

the firm mainly source of firm money is secured loan because it is increasing
continuously, it was 2776.10 on Sept 2005 but in Sept 2006 it was 3608, it means
firms large amount of money arrange from secured loan. Firm is also getting fund
from issuing of share capital firm future power reserve and surplus also increasing it
show that increasing rate power. Balance show the financial position of the firm.

4.2Market Share and Growth Rate of Videocon

Videocon Industries Ltd
Videocon holds 25% market share in the consumer goods market in India. It is oneof the largest
CPT manufacturers globally, with operations in India, Mexico, and Italy
Videocon, founded in 1985, is today one of the largest corporate groups in India. It is now
venturing into power and telecom. It is one of the largest manufacturers of Colour Picture Tube
(CPT)globally. It has close to 25% market share in home appliances segment in India and aims to
double this business in next five years. Apart from its core businesses, the company isaiming to
grow its power and telecom (handset and services) businesses aggressively through large scale
investments.

Figure 4.1: Market Share (%) for FY09

Videocon Industries is primarily engaged in two core businesses

Manufacturing, assembly, marketing and distribution of consumer electronic products

& home appliances

Consumer Electronics, Home Appliances & Compressor manufacturing: Products

include home entertainment systems,microwave ovens, Colour Picture Tube (CPT) &
liquid crystal display (LCD) televisions, refrigerators, washing machines,
airconditioners, small appliances, glass shells, compressors / motors and other
components

The Company has Research & Development centres located in China, India and Japan

Display industry and its components: Manufactures colour picture tubes at its
facilities in Italy, Poland and China

Colour Picture Tube (CPT) Glass: Operates manufacturing facilities in India and
Poland

The Company, through its wholly owned subsidiaries and JVs, is engaged in exploration activities
in oil & gas fields in Brazil, Mozambique, East Timor, Oman and Australia

Entry into the Telecom business: In March 2010, Videocon Telecommunications Ltd, a
unit of Videocon Industries Ltd, launchedmobile services based on the global system
mobile (GSM) platform

Power business: Pipavav Energy, the Companys subsidiary, is implementing a thermal

power project in Gujarat with a capacityof 1,200 MW; Videocon is also considering

power projects in the other parts of India and evaluating alternate technologies forthe
same.

Plans to set up three more thermal power generating units with a combined capacity of
4,800MW in Maharashtra,Chhattisgarh and Asansol, with a total investment of
USD6.5bn

The equity shares of the Company are listed on the Bombay Stock Exchange and
National Stock Exchange of India; the Global DepositoryReceipts (GDR) and Foreign
Currency Convertible Bonds (FCCB) issued by the Company are listed onthe
Luxembourg Stock Exchange and Singapore Exchange Trading Securities respectively

Chapter 5
Findings/ Observations

5.1 OBJECTIVE OF THE STUDY

The objective of the project is further classified into primary and
secondary objective.

Primary objective:Find out the market size of refrigerator (in percentages) of different brands
in N C R . F o r t h i s p u r p o s e , t h e r e s e a r c h e r h a s t o d o a s u r v e y b y
i n t e r v i e w i n g t h e households and finding out the market share of Videocon
brand in accordance with other brands.

Secondary objective:To know where does the Videocon brand of refrigerator stands in comparison to
other brand and what are the various aspects where it needs to improve in order to
remain in the market and compete with other brands.

5.2 RESEARCH METHODOLOGY

A survey has been done and data is collected from various company`s purchase
manager all over Guragon and some part of Delhi. Primary data has been collected
by interviewing customers and purchase managers, while secondary data has been
collected from the sites

of Videoconworld.com.

Sampling plan for survey

Sampling units

Sampling size

Sampling area

Purchase manager and customer

5 companies and 200 customer

Gurgaon

5.3 QUESTIONNAIRE METHODOLOGY

The questionnaire has to be self administered in order to know the exact views & some other
suggestions of the purchase manager and customers the questionnaire were administered in the

form of a small interview.

The advantages of the questionnaire method is its versatility, almost every problem of making
research can be approached from the questionnaire standpoint. Every marketing problem
involves people & its solution can be obtained by asking these people about the problem.

Data analysis procedure :The data has being analyzed using excel wherein various factors have been determined &
their frequencies have been measured. Some of the factors to determine are as following.

Brands:-

The various brands selling in the market from the dealers point of view the predominant
brands in terms of sales, after sales services & services provided quality etc.

Awareness level :The awareness level regarding the different types of air conditioners is judged according
to the people purchasing it.

Purchase manager and customer network:Various attributes were rated & then ranked by the purchase manager and customer

involved in purchase of the product namely, excellent, good, satisfactory & poor and what
changes they want to improve Videocon A.C.

Positioning level:The positioning of air conditioners is judged by the total number of customers asking for
the brand name & are willing to pay for the same. This is also termed as the pull
factor.

DATA ANALYSIS AND RESULT:-

The market survey showed that the sales volume of Videocon is the highest followed by
Daikain, Carrier, Hitachi, LG and other AC companies.

QUALITY OF AIR CONDITIONERS:-

Daikain serves as the top leader in providing best quality to its customers, followed by

Hitachi and then Videocon.

CUSTOMER CONSIDERATION OF PRICE:-

According to the market survey conducted 300 company`s manager and customers
considered price as a major determinant while buying Videocon air conditioners, because
Videocon started new scheme Corporate Sales.

POSITIONING OF VIDEOCON AIR CONDITIONER IN

THE MARKET :-

Amongst the dealers surveyed 41 % agreed that the positioning of

Videocon air

conditioner in the market is excellent whereas 33% feels that it is good , & 17% says
that is satisfactory and remaining 13% says poor.

MAINTAINENCE OF GOOD PUBLICRELATION :-

According to the market survey conducted, About 77% of the correspondent say that
Samsung maintains a good public relation with its dealers whereas 23% does not have
the same response.

INSTALLATION AND OPERATION:-

According

to

the

market survey conducted,

Hitachi leads the

market in providing

services in terms of installation & operation followed by Videocon, Daikain, Blue Star,
Carrier, Voltas, LG and then ogeneral.

ADOPTION OF VARIOUS PROMOTIONAL TOOLS:-

Advertisement is regarded as one of the major promotional tools with a share of

51% followed by sales promotion, personal selling and direct marketing.

MAINTAINENCE OF SUFFICIENTNET WORK:-

Amongst

the

Managers,

dealers,

Customer

surveyed

79%

said

that

Samsung

maintained a sufficient network whereas while 21% provided negative response.

FINDINGS
With strategically located manufacturing bases and an enviable distribution network
of around 90 branch offices, 10,000 distributors & 400 after-sales service centers
across India, VIL enjoys a unique 80% plus penetration in the market place.
A high degree of backward integration ensures that VIL has most of the vital
components under its control and bestows upon it unique benefits over competition
uninterrupted supply, shorter turnaround time, cost advantage and quick adaptation to
changing customer needs.
VIL is looking to strengthen its presence through a host of big ticket acquisitions/asset
buyouts Daewoo Electronics (South Korea), Chunghwa Picture Tubes (Taiwan),
Pioneer (Japan) and other brown-field expansions will help VIL expand its horizons.
VILs glass division, VNG, is the largest single location glass shell plant, enjoying
economies of scale and a leading position in the global glass shell industry.
Additionally, integration of its acquired Thomson Colour Picture Tube (CPT) plants
with its Indian business would not only reduce the cost of production, but also give its
glass shell units a ready market.
The Thomson acquisition includes R&D centres and access to over 2,000 patents,
which would enable VIL to launch new products as well as counter the threat posed
by the conventional TV market being rapidly overtaken by hi-tech products in
overseas markets.
Increasing demand & high prices in the oil & gas industry will not only lead to
improved realizations, but along with low operating costs that the Ravva oil & gas
field enjoys, it can translate into a bonanza for VIL.
VIL has earmarked USD 13 MM (FY07) & USD 24 MM (FY08) as capex for its oil
& gas business, in order to increase the extraction from the field. It has also embarked
upon Infill Well Drilling and exploration & production of three new blocks; LM-403,
Back Fault Block & LO-110, all in the Ravva field. The probable reserves in the
Ravva Oil field are estimated to be as high as 400 MM barrels, of which only about

160 MM barrels have been produced. Thus, a huge upside potential exists for the
company.
VIL is exhibiting substantial panache by fruitfully working towards bidding for and
more often than not, attaining exploration and production rights in many countries
around the world. It is well on its way to earning remarkable profits & achieving a
prominent global standing.

Chapter 6
CONCLUSIONS
Turbulent is the word that aptly describe the scenario in CTV industry last financial
year. Marketers by frequent price cuts and larger than live Marketing game plans,
competition reached its new highs and lows. It is no longer sufficient to just be
competitive, a company which has to survive has got to have competitive advantage.
One needs to take strategic initiative in the short run to achieve the desired
positioning in future. One has to foresee tomorrow.
Understanding competition today involves three levels:
Competition for intellectual leadership for new ideas that create new advantages.
Competition for translating these ideas into product/service faster than others.
Competition for market share.
Do not nature any PARADIGMS because today anything is possible
Search for newer markets than expanding your customer base.
Come out with state of the art, feature packed affordable and competitive
advantageous products.
Set Benchmarks for growth.
Improve up on distribution channels for viable coverage of the market.

Wear out competition through trend setting, inimitable tactical moves based on our
infrastructure strengths.
The strategic intent should be clear down the management.
Work on your strengths i.e. Infrastructure, financial base, backward integration.
POP and MERCHANDISING material should be mad as per international market.
CORPORATE TRAINING PROGRAMME for Development of manpower from
external faculty.
We have so far identified the various areas on which Videocon and other major Indian
companies need to improve upon to achieve the desired level of competitiveness.
Only these improvements would give Videocon and the other Indian companies base
to compete with the MNCs and help the Indian companies to reduce the impact of
MNCs on the Indian Market in the future. Indian manufacturers will have to react
quickly because any delay in reacting to the threat posed by the MNCs would only
give the MNCs time to establish themselves in the market. With their expertise and
financial capacity they would be nearly impossible to compete with once they get a
firm foot hold in the market. The future
But the battle has only started, and the foreign companies are here for the long term.
They can sustain losses for years to come in order to gain market share. What they are
doing at present, is building up distribution networks to cover every nook and corner
of the country and, setting up manufacturing facilities.
Only those Indian manufactures which have a strong focus on manufacturing and
technological up gradation will survive in the long run, although with a much smaller
market share than they have at present. Small companies will be sidelined totally and
will exit from the CTV market altogether.
Videocon has always been driven by its Value -for-money strategy. The company
needs to identify critical success factor and work assiduously towards achieving it.

BIBLOGRAPHY

1.

http://en.wikipedia.org/wiki/Videocon

2.

http://www.videoconworld.com/

3.

http://www.google.co.in/

4.

www.branders.com

5.

www.viewcentral.com

6.

www.eventmarketer.com

7.

www.mobilemarketingjoblist.com