Dissertation Report

On
Marketing and Branding Strategies of
Consumer Durable Companies

IMS Ghaziabad
Faculty Guide
Dr.A K Singh
Submitted by
Ankur Singh.
MBA-2004-2005

C!"O#$%DG%M%"&
I would li ke to take thi s opportuni ty to thank the fol lowi ng
peopl e who have di rectl y or indi rectl y contri buted towards
the compl eti on of thi s dissertati on and wi thout thei r hel p
thi s i n the present form woul d have not been possi bl e.
I am thankful to Dr. A.K.Singh, IMS Ghazi abad for gi vi ng
me opportuni ty to work on such a ni ce project as my
project. And l ast but not the l east my speci al thanks to my
parents wi thout thei r support my MA course woul d not
have been possi bl e.
Ankur Singh
2

D%C$R&IO"
I hereby declare that this project report entitled Marketing and Branding
Strategies of Consumer Durable Companies is written and submitted by me
under the kind guidance of Dr '! Singh
The findings and interpretations in the report are based on both primary and
secondary data collection. This project is not copied from any source or other
project submitted for similar purpose.
3

Contents
Introduction
Industry Overview 7
History 8
Major Industries
Philips !
Sa"sung #
$ideocon #
%hirlpool &
Hitachi
&
'lectrolu( 7
)P* 7
Onida 7
Co"parison+Major Players
)P*
Products ,-
Strategy ,#
.istri/ution 0etwork !-
Pro"otion Mi( !,
$ideocon
Products !&
.istri/ution 0etwork
&,
Pro"otion Mi( &1
Sa"sung
Products &&
Marketing and )randing Strategies
An Overview 7&
*23s Strategy 78
Present Scenario and recent trends 8,
4

4uture prospects in Consu"er .ura/le 87
Industry
S%O5 Analysis 61
Conclusion 6#
7eco""endation -
)i/liography -!
5

Introduction
6

INTRODUCTION
I"D(S&R) O*%R*I%#
The Consumer Durabl e i ndustry i s huge! Thi nk of a t ypi cal day then
you wake up to make coffee that has been brewed by your-control l ed
coffee maker. ou pop a coupl e of sl i ces of bread i nto your el ectri c
toaster! grab some j ui ce from the refri gerator and throw a l oad of
l aundry i nto your washi ng machi ne. ou dry your hai r wi th your
el ectri c hai r dryer" brush your teeth wi th your el ectri c toothbrush and
head of your j ob. #t l unchti me! you prepare your l unch i n the
mi crowa$e o$en and then l ea$e earl y to head homework i n your yard
wi th your l awnmower! l eaf bl ower and tri mmer. Di nnerti me means
your need to put that roasts i n your el ectri c o$en! open a can of
$egetabl e wi th the el ectri c can opener and mi % up a cake wi th your
el ectri c mi %er. #fter the di shes ha$e been put i n the automati c
di shwasher! i t i s ti me to rel a% wi th the T& and &C'! but onl y after
you put the cl othes i nto the dryer and i ron the cl othes you wi l l need
for tomorrow. Ti me to set that ti mer on the coffee maker agai n and
prepare for a brand new morni ng! The number of househol d
appl i ances grows e$ery year! but there i s one sector of the i ndustry!
the maj or appl i ance sector! that remai ns fai rl y constant. Thi s i s the
sector that I ha$e chosen to anal y(e. The appl i ance that compri se
7

thi s sector re ranges! refri gerators! washers! dryers! and
di shwashers the )IC that rel ate to them are.
+IS&OR)
*ome #ppl i ances i ndustry i s one of the most l ucrati $e and fast
growi ng i ndustri es. The Indi an economy wi tnessed a prol i ferati on of
gl obal compani es i n the +ati onal )cene. ,i beral i (ati on of Indi an
economy coupl ed wi th the medi a e%pl osi on ushered i n a new era of
consumeri sm. Increased purchasi ng power and a fl ui d taste l ed to
the creati on of buddi ng *ome #ppl i ances market. The growth rates
were as hi gh as --. i n the whi te goods segment compared to a
merel y --/. growth i n the 0uropean and #meri can market.
*ome #ppl i ances i ndustry scenari o i n Indi a i s a total l y
di fferent from what i t was one decade back. Consumer Industry
)cenari o i n Indi a i s total l y di fferent from what i t i s i n 0uropean
Countri es. Demand i n de$el oped countri es i s mai nl y consti tuted by
repl acement demand whi te goods market i n Indi a was domi nated by
i ndi genous i ndustri al houses l i ke &i deocon! 12,! 3+ID#! 4el $i nator!
and many other! but the entrance of mul ti nati onal s i n Indi an market
because of openi ng up of Indi an economy ga$e these compani es a
bi g bl ow. 5+Cs that are gai ni ng good market share are )amsung!
,6! 0l ectru%.
8

%M%RG%"C% O, CO"S(M%R D(RB$% I"D(S&R)
Indi an *ome #ppl i ances i ndustry i s growi ng at an o$eral l rate of 7--
7/ percent. If we consumer each product market i ndi $i dual l y! the
Col our Tel e$i si on market has shown a growth rate of -8..
'efri gerator market i s growi ng at a rate of 9-7:.. 'eason for hi gh
growth rate CT& market i s that now a days T& i s not used as a
source of entertai nment but al so source of knowl edge and
educati on. #l l these factors act as accel erator. If we take the case
ai r condi ti oners! today ai r condi ti oner i s not onl y refer to a cool i ng
machi ne but al so an ai r fresher. In proporti on to growi ng i nci dence
of worki ng coupl es! refri gerators are gai ni ng si gni fi cance! more and
more as an i nstrument to store and recycl e ready made $i ctual s. In
spi te of many $al ue added )er$i ce that are bei ng offered by most of
the brand! the refri gerator market i s sti l l bi ti ng the dust.
0l ectroni cs i s the fastest growi ng i ndustry i n Indi a. In the l i beral i (ed
economi c scenari o! el ectroni cs has entered e$ery wal k of our l i $es
and has enhanced the ;ual i t y of l i fe that i s enj oyed by the Indi an
consumer. Indi a i s no l onger a country! a market where the
consumer has to rel y al most enti rel y on the i nfl u% of smuggl ed
el ectroni c i tems to sati sfy hi s needs. The Indi an el ectroni cs i ndustry
has thrown up competi ti $e pl ayers who are not onl y abl e to cater to
the desi res of the Indi an consumer successful l y! but ha$e al so
9

emerged as $ery successful e%porters of el ectroni c goods to the rest
of the worl d. Thi s has al l happened i n the l ast -: years or so. #
coupl e of decades ago! nobody i n hi s wi dest dreams coul d ha$e
i magi ned that consumer goods beari ng Indi an brands! bui l t up
assi duousl y by Indi an compani es woul d come to domi nate Indi an
i ndustry. There coul d ha$e been t wo reasons for so l i ttl e fai th i n
Indi an goods. <i rstl y! the Indi an publ i c= s unhi dden groups l i ke 12,!
&i deocon! 3ni da! that Indi an brands now domi nate the markets.
These corporate houses ha$e upset the appl e cart of forei gn
compani es by establ i shi ng *ome #ppl i ances manufacturi ng
compani es that ha$e not onl y consi stentl y produced superi or
products but ha$e al so created i n a $ery short span! brand e;ui ti es
capabl e of taki ng on i nternati onal brands. That i s! the Indi an
consumer= s percepti on of brands ori gi nati ng i n hi s own backyard has
e$ol $ed from one of shame to one of trust! pri de! i denti fi cati on! al l of
whi ch transl ate i nto patronage - or achi e$ement of a company= s core
busi ness obj ecti $es.
The 0l ectroni cs i ndustry i s one of the bedrocks of gl obal i ndustri al
de$el opment. The el ectroni cs i ndustry was for l ong the domai n of
<i rst >orl d economi cs. The 7?@:= s saw a shi ft! wi th Aapan= s
emergence. )ubse;uentl y *ong 4ong! )outh 4orea! Tai wan and
)i ngapore! then 1ra(i l ! Indi a and 5e%i co fol l owed of l ate by Chi na!
Indonesi a! 5al aysi a! 2hi l i ppi nes and Thai l and ha$e entered the fray.
10

#fter economi c l i beral i (ati on our country l owered entry barri ers and
brought gl obal compani es i nto the country= s marketpl ace! i t was
real i (ed that the core of the corporate worl d must change! to focus!
the fi rst ti me e$er i n Indi a! on the consumer. #nd to stop chasi ng
re$enues! profi ts and market shares! whi ch wi l l fl ow onl y from the
new consumer competence. <orget too! fore$er! the si l ent consumer
who! before of al ternati $es! uncompl ai ni ngl y bought whate$er
products were made a$ai l abl e. In today= s and tomorrow= s new
unforgi $i ng marketpl ace i t i s the choi ce - empowered consumer who
wi l l deci de the fate of the corporati ons.
#nd competi ti on! gl obal ;ual i ty and new economi c real i ti es are
conspi ri ng to l i mi t success onl y compani es that are focused
compl etel y on thei r consumer. <or! onl y these compani es and
conti nuousl y moni tor and meet changi ng consumer needsB
streaml i ne processes" cut costs and restructure for ;ui cker response
to the consumer= s demands. #l l of whi ch wi l l add up to an
unmatched competi ti $e edge! enabl i ng them to con;uer tomorrow= s
marketpl ace today. *owe$er! the consumers and spendi ng wi sel y
not i ndi scri mi natel y. Changi ng personal ! soci al ! fami l i al and cul tural
i nfl uences - for i nstance! the ad$ent of satel l i te T&! i nternet and the
i nformati on age bri ngi ng wi th them ri ch! real - ti me i mages and data
about gl obal l i fest yl e- ha$e made the consumer an i ndi $i dual i sti c!
i conocl asti c and i rre$erent wi el der authori t y o$er the fate of
11

corporate= attempts to ful fi l thei r needs. >hi ch i s why i n thi s new
buyer= s market! the marketer has not choi ce but no make the
consumer hi s l odestar.
12

Major
Industries
13

M-OR I"D(S&RI%S
&rends affe.ting the Consumer Durable industr/
The boomi ng economy gi $es consumers more real di sposabl e
i ncome! whi ch has i ncrease si nce -::C. Thi s i s an i mportant factor
i n maj or appl i ance sal es as i t i s esti mated that D.). consumers
spend about 8: cents of e$ery E7:: on maj or appl i ances. The
economy al so does wel l for consumer l oans. In good ti mes!
consumers are l ess afrai d to borrow money for maj or purchases!
and as appl i ances. 5any may e$en deci de to but whi l e the
economy i s good! rather than wai ti ng unti l they are forced to make
a purchase when an appl i ance wears out.
Changi ng demographi cs wi l l pl ay a si gni fi cant rol e i n the maj or
appl i ance market o$er the ne%t few years. The baby boom
generati on wi l l be i n the /8-to-88 age group duri ng the ne%t 8 years.
*ousehol d headed by consumers i n thi s age range are i n thei r pri me
earni ng years and tend to spend more on househol d durabl es than
any other age group.
0hilips India
2hi l i ps i s one of the ol dest mul ti nati onal s to enter Indi a nearl y @:
years ago. 2hi l i ps has had a fai rl y successful run as a maj or pl ayer
i n the tel e$i si on market. The company has i denti fi ed domesti c
14

0l ectroni cs! personal computers and moni tors! software as i ts target
busi ness. In the year endi ng Dec= :8 2hi l i ps Indi a has notched up
sal es of 's. 7@9/ crore.
Samsung %le.troni.s
)amsung el ectroni cs entered Indi a wi th a stake of E 8 mi l l i on i n the
Indi a subsi di ary )amsung Indi a el ectroni cs ,td.! i n whi ch i t hol ds a
87 per cent control l i ng share. The product portfol i o of )amsung
0l ectrons ranges from 5ul ti medi a products! home 0l ectroni cs and
tel ecommuni cati on product systems.
In Indi a the company has establ i shed a l eadershi p posi ti on i n the
product categori es i n *ome 0l ectroni cs CC: wat ts 5i %er 6ri nder CD
based systems! washi ng machi nes! mi crowa$e o$er and &CD= s. In
-::C i t had a market share of 9.. The company has a
manufacturi ng faci l i ty for home appl i ance at the +oi da compl e%. Thi s
faci l i t y has a producti on capaci ty of 8:!::: uni ts each for
refri gerator and washi ng machi nes.
*ideo.on
&i deocon Internati onal ,td.! company ha$i ng a market share of
7C.7. i n the *ome 0l ectroni cs market. 0sti mated to be among the
top three compani es i n the country i n the *ome 0l ectroni cs! Ci trus
Aui cer and 5i %er 6ri nder segment &I, i s now up agai nst maj or
i nternati onal brands whi ch ha$e entered Indi a. In -::C! i t had ti ed
15

up wi th Toshi ba for the marketi ng of the premi um 7@.? doubl e
wi ndow *ome 0l ectroni cs Costi ng about 's. 7.? l acks.
The market share i n -::C were B
*ome 0l ectroni cs= s 79." refri gerator 77." Ci trus Aui cer /-.F." ai r
condi ti oner 7-.F..
#hirlpool
Thi s company i n$ested i n Indi a i n 7?9F begi nni ng wi th the $enture
wi th T&) pri $ate l i mi ted. In 7??C! T&) >hi rl pool ,td. changed i ts
name to >hi rl pool Ci trus Aui cer ,td. Its domi nance i s mai nl y i n the
whi te goods i ndustry. It 7??8 >hi rl pool re;ui red control l i ng i nterest
i n 4el $i nators of Indi a! one of country l argest manufacturi ng and
marketer of refri gerators. Its market shares i n -::7 were" 5i %er
6ri nder 7?./." Ci trus Aui cer 7C.@..
mtre1 +ita.hi
It has strategi c al l i ance wi th *i tachi ,td.! of Aapan. It entered whi te
and brown goods market i n Indi a few years back and i s ai mi ng at a
market share growth by 7@.. It i s maj ori l y i nto the marketi ng of hi gh
end #C= s each i n spl i t and wi ndows segment. Its market shares i n
-::C were B ai r condi ti oner 7/..
16

%$%C&RO$(2
#1 0l ectrol u%! reached an agreement to obtai n maj ori t y ownershi p i n
an Indi an Ci trus Aui cer manufacturer! Intron ,td. 0l ectrol u% i n$ested
D) E -.C mi l l i on i n the step to obtai n 87. ownershi p i n Intron ,td. In
7??8 i t took maj ori t y control of 5aharaj a Int= l ,td.! an Indi an
refri gerator manufacturer. >i th these two manufacturi ng bases i t
e$en has C:. stake i n 0ureka <orbes 0l ectrol u%
The company has presence mai nl y i n the refri gerator and Ci trus
Aui cer segment. It has been l aunchi ng worl d cl ass products i n Indi a
at regul ar i nter$al s. -::- wi tnessed the l aunch of se$en upgraded
worl d cl ass model s of 4el $i nator refri gerator. In -::/ i t l aunched
premi um 6ol d col l ecti on from 4el $i nator. 5arket shares i n -::8
were B refri gerator 7/.F..
B0$
12, 6roup was promoted by the founder! T26 +ambiar. The flagship company!
12, ,imited was incorporated in 7?@/ as a pri$ate limited company under the
name 1ritish 2hysical ,aboratories India 2ri$ate ,imited for the manufacture of
electronic test and measuring instruments in collaboration with 12, Instruments
,td. D4. The company further e%panded into such electronic products as medical
systems and e;uipments! power line carrier communication e;uipments! copiers!
monitors etc. 5aking its foray into consumer electronics in 7?9-! 12, ;uickly
established itself as one of India=s most trusted consumer durable brands. *uge
17

in$estment in manufacturing! marketing G distribution infrastructure! and brand
building ha$e made 12, a trusted name in the consumer durable industry. 12,
today enjoys one of the highest brand awareness amongst consumer electronics
brands and also has one of the highest preference shares in the CT& industry.
12, is currently engaged in the production and sales of tele$isions! home theatre
systems! medical e;uipment! automoti$e parts! electronic components and
alkaline batteries.
18
345
65
785
675
Onida B0$ *ideo.on Others
Market Share-CTV
95
65
795
695
Onida B0$ *ideo.on Others
Market Share-Washing Machine

COM0RISO" M-OR 0$)%RS
BRI&IS+ 0+)SIC$ $BOR&ORI%S $&D': B0$ ;
I"&ROD(C&IO"
12, *ome #ppl i ances ,i mi ted i s the <l agshi p Company of the C@::
cr. 12, 6roup i s Indi a= s l argest consumer el ectroni cs congl omerate.
The group has a l ong-standi ng strategi c al l i ance wi th )anyo HAapanI
for a $ari ety of consumer durabl es. 12, ,i mi ted has a pri nci pal
presence i n the manufacture and the sal e of Col our T& sets. The
company al so produces bl ack and whi te T& sets! al kal i ne batteri es
and gas tabl es.
12, 6roup was i ncorporated i n 7?@/ and started manufacturi ng
hermeti cal l y seal ed panel meters for defense and subse;uentl y
di $ersi fi ed i nto medi cal i nstruments. In 7?F:! wi th techni cal
col l aborati on wi th )i emens and ITT! 12, began manufacturi ng
professi onal grade rel ays and swi tches and l ater e%panded i nto
manufacture of power l i ne carri er communi cati on e;ui pment for the
go$ernment of Indi a. In 7?9-! 12, group grew steadi l y i n the fi el ds
of medi cal i nstrumentati on! communi cati on and power systems
l argel y due to a reputed i n-house 'GD faci l i t y and component
de$el opment center for i n-house re;ui rements. 12, wi tnessed a new
era i n 7?9--9/ wi th group= s entry i nto Consumer 0l ectroni cs and
wi th formal techni cal col l aborati on wi th )anyo 0l ectri c Company!
19

Aapan. )i nce then the growth has been phenomenal wi th sal es
turno$er neari ng D) E ?:: 5+ i n -::C to -::8.
To combat competi ti $e pressures! the company l aunched the l atest
model s i n the market and went i n for hea$y ad$erti si ng to mai ntai n
i ts l eadershi p i n the market for a ;ual i t y product company from i ts
earl i er i mage of medi cal e;ui pment company.
)ensi ng the consumer el ectroni c i ndustry i s goi ng to be fi ercel y!
competi ti $e i n the years to come and growth rate wi l l sl ow down!
12, i s di $ersi fi ed i tsel f i nto other i ndustri es l i ke power and cel l
phone net works. 1oth of these are unrel ated di $ersi fi cati ons for the
group and group resources are stretched to the l i mi t as both the
segments entai l hea$y i n$estments.
B0$ GRO(0
Mission Statement
12, i s commi tted to achi e$e a l eadershi p posi ti on i n al l i ts busi ness
group through uti l i sati on of the best and most appropri ate
technol ogi es! appl yi ng the fi nest manufacturi ng di sci pl i nes and most
effi ci entl y marketi ng hi gh ;ual i ty products and ser$i ces to
consi stentl y gi $e i ts customers the best $al ue for thei r money.
Ob<e.ti =es of the Compan/
To ensure customer confi dence through product ;ual i t y! effi ci ent
marketi ng and effecti $e ser$i ce.
20

To conti nual l y enhance the Company= s growth to i ts sharehol ders
and i n$estors through sound i n$estments and profi tabl e
operati ons.
To demonstrate a real concern for i ts empl oyees and constantl y
i mpro$e the ;ual i t y and $al ue of thei r j obs and career
ad$ancement.
To be a good corporate ci ti (en who contri butes posi ti $el y to i ts
communi ty by protecti ng the en$i ronment and worki ng for publ i c
wel fare.
To respect the l aws! rul es and customs of the l and and to ensure
the conduct of al l company acti $i ti es wi l l al ways be to the hi ghest
ethi cal standards.
B0$ +OM% 00$I "C%S I&%MS
Consumer %le.troni.s > &ele=i si ons
# wi de range both i n Col our and i n 1l ack and >hi te! Cateri ng to
i ndi $i dual customer needs i n terms of features! l ooks and styl i ng
housed i n ful l y mol ded pl asti c cabi nets and i ncorporati ng cri ti cal
components manufactured i n techni cal col l aborati on wi th )anyo of
Aapan! 12, Tel e$i si on are l eaders i n the market-i n ;ual i ty and i n
performance.J
C(RR%"& MR!%&I"G ? BR"DI"G 0$" O, B0$ $&D'
21

The group has al ways been seen as an el ectroni cs engi neeri ng
group! unl i ke many of i ts competi tors. Today i t makes e$eryt hi ng
from the cabi net to the el ectroni c tuner i tsel f and buys the pi cture
tubes from Indi an suppl i er. Thi s i n i tsel f i s seen as a transi ti on of
12, from an engi neeri ng group to more di $ersi fi ed group deal i ng
ri ght from consumer el ectroni cs to cel l ul ar ser$i ces whi ch i n short
span of ti me the group ha achi e$ed wi th tremendous success. The
12, group i s l ot shy! i ntro$erted! but e%ci ted about the ;ual i t y of i ts
products. It i s not surpri si ng that o$er the past years! the group has
;ui etl y set i n moti on a wi de rangi ng! strategi c pl an to establ i sh i tsel f
as the undi sputed l eader i n consumer el ectroni cs. 3$er the l ast
coupl e of years 12, has i ntroduced a stunni ng array of new
products" washi ng machi nes! $acuum cl eaners! refri gerators!
mi crowa$e o$ens. In audi o! i t has wi dened i ts range dramati cal l y.
)oon to come gas sto$es wi th bui l t Ki n Kl i ghters! mi %er-gri nders!
mi neral water machi nes. In j ust 7: years! sal es ha$e (oomed from
's. 7? crores to 's. 7::: crore. 12, i n the fi el d of col our T&s has
l eft behi nd ol d ti me ri $al s &i deocon G 3ni da . In audi o segment the
sal es of 12, i s second onl y to 2*I,I2) who i s the market l eader. In
&CD! 12, )#+3 was the market l eader wi th a 7F percent share of
Indi an made machi nes.. In col or T& components! the group has @8
percent of the market for el ectroni c tuners.! fl yback transformers
and defl ecti on yokes! suppl yi ng to many of i ts competi tors. In
22

medi cal el ectroni cs! i t has @: percent of the el ectroni c tuners!
fl yback transformers and defl ecti on yokes! suppl yi ng to many of i ts
competi tors. In medi cal el ectroni cs! i t has 88 percent of the
el ectrocardi ogram market and 8:-@: percent of the ICD moni tor
market. In the 0pba%s! the group has the l argest user base i n the
country. )ome conser$ati $e and shy whi ch now to a l arge e%tent
has been abl e shed i ts i mage to l argel y because of the i n$ol $ement
of 1I6 1 i n the ad$erti sement whi ch i n i tsel f was seen as mega coup
or e$ent.
12, has al ways i n$ested money fi rst i nto factori es and then i nto
marketi ng. The group has hi gh bel i ef i n $erti cal i ntegrati on! whi ch
shows the confi dence of the company whi ch takes pri de a i n work
and that bel i ef i s refl ected promi nentl y i n the ad$erti sement as
10,I0&0 I+ T*0 10)T. The group bel i e$es i n usi ng engi neeri ng
superi ori ty to offer the best! troubl e K free products i n the market
pl ace. )tress consumer pul l ! not deal er push. In the l ong run! thi s i s
the most profi tabl e route of e$eryone manufacturer! deal er!
consumer.
)moother the competi ti on wi th range as i t keeps both the consumer
and deal er happy. It uses the top-of-the-l i ne products to gai n
attenti on. The rub-of on the enti re range down the l i ne wi l l work
wonders. 12, i s al so runni ng deal er promoti on schemes but not to
the e%tent thei r competi tors i ndul ge i nstead they bel i e$e more on
23

ad$erti si ng due to the fact that i f the promoti onal spend crosses and
spend that means they are cutti ng thei r brand i n the l ong run. )o for
deal er they l ook at hi gh margi ns troubl e free performance so the
customer won= t hassl e hi m and a constant fl ow of new products on
al l factors 12, has got i ts act together. 12,= s range strategy works
on two l e$el s. #t the fi rst one! the group i s pushi ng i nto e$ery
consumer durabl e category i n an attempt to create an al l -
encompassi ng umbrel l a brand much l i ke those of l eadi ng Aapanese
compani es. It i s sel ecti ng deal er showrooms at pri ce l ocati ons
across the country and turni ng them i nto 12, 6al l eri es that stock
and di spl ay onl y and al l 12, products. The mai n obj ecti $e of the
12, 6al l eri es i s to show the publ i c the wi dth of 12,= s product
range! bui l d corporate i mage and sal es. The second l e$el of 12,= s
range strategy i s most ob$i ous i n the 's. 7!8:: crore audi o market.
The one wi th 's. 78::-/::: stereo portabl e segment Hpopul arl y
known as two-i n-onesI wi l l become the l argest segment $ol ume wi se
o$ertaki ng mono portabl e.
The 12, group i s sl owl y mo$i ng away from i ts core areas of
entertai nment el ectroni cs and consumer durabl e. 1ut not al l i ts
di $ersi fi cati on ha$e been successful . It was thi s same tenaci t y that
hel ped the 12, group fl oat a hi gh-technol ogy company i n a $ery
short ti me. 12, 5obi l e! one of the cel l ul ar ser$i ce pro$i ders i n
1ombay! stands out for j umpi ng i nto the fray wi thout any forei gn
24

partner. 12, 5obi l e and si mul taneous di $ersi fi cati on= s i nto the
power ski l l s of i t= s the 12, group= s attempt to mo$e away from the
hi ghl y competi ti $e entertai nment el ectroni cs sector! i ts mai nstay al l
al ong. They ha$e entered power sector because of i ts hi gh entry
barri ers for smal l er pl ayers. )i nce tel ecom and power are hi gh
turno$er areas the dependence on entertai nment el ectroni cs wi l l
reduce but $ery gradual l y. The $ari ous compani es are i n si % mai n
areas of operati ons entertai nment el ectroni cs! appl i ances! tel ecom!
power! el ectroni cs and T& components and i nternati onal operati ons.
S&R&%G)
<aced wi th a market where products are con$ergi ng on the
technol ogy front! 12,= s strategy to (ero i n on two cri ti cal
di fferenti ates" brand bui l di ng and cost l eadershi p. Together! thi s i s
e%pected to del i $er the ul ti mate strategi c weapon! $al ue.
Differentiation @ l ast four years al ong! the 12, group has spl urged
's.-7C crore on ad$erti si ng campai gn. To good effect. # recent
sur$ey by the 1angal ore K based market research fi rm! 6al l up 51#
Indi a! re$eal s that 12, i s the si %th Kmost popul ar i n the country
today. +ot surpri si ngl y! the group has $al ued the 12, brand at 's.
@77 crore. #ccordi ng to Tri sys 'esearch! the marketi ng consul tancy
company! whi ch di d the $al uati on for 12,B The huge amount of
money spent by the group i n strengtheni ng i ts brand must be seen
25

as an i n$estment and i nsurance. In$estment because thi s wi l l dri $e
future sal es! and i nsurance because the strong brand i s e%pected to
keep the competi ti on at bay and protect 12,= s earni ngs i n the
process.
To smal l e%tent has that hel ped 12, actual l y e%pand i ts CT& market
share i n the fact of transnati onal competi ti on. In -::--:/! when the
consumer el ectroni cs i ndustry reported stagnant sal es 12,= s CT&
sal es grew by 78 per cent. 1ut 12, di d not ha$e a strai ghtforward
brand posi ti oni ng strategy. 3n the other! to effecti $el y set i tsel f
apart as an Indi an el ectroni cs maj or capabl e of bei ng on i ts own.
12, cannot afford to o$erpl ay the )anyo part. In fact! the enti re
strategy re$ol $es around posi ti oni ng 12, as the best Indi a has to
offer. *ence the choi ce of #mi tabh 1achchan! and si gnature l i ne!
1el i e$e i n The best. The campai gn con$eys on cl ear messageB any
12, product you pi ck up i s the best i n terms of ;ual i t y! technol ogy
and $al ue for money.
&e.hnolog/ $eadershipB Dnderscori ng the di fferenti ati on strategy
i s! of course! 12,= s technol ogy l eadershi p. >hi l e an annual 'GD
budget or 's. @.C8 crore i n -::C-:8 ford not show great commi tment
to 'GD! that hasn= t stopped i t from shoppi ng for technol ogy to keep
pace wi th market demand. <or i nstance! the group= s fi rst $enture
i nto i nstrumentati on came i n the wake of a technol ogy partnershi p
wi th 1ri ti sh 2hysi cal ,aboratori es of the D4. The foray i nto
26

consumer el ectroni cs i n 7?9-! and subse;uentl y! i nto the domesti c
appl i ances segment was dri $en by a ti e-up wi th )anyo 0l ectri c! and
the proposed col our pi cture tube pl ant wi l l be set up i n technol ogi cal
col l aborati on wi th the E C9.C7 bi l l i on Toshi ba Corp. of Aapan. 3nce i t
enters a segment! the group makes i t a poi nt to ;ui ckl y broad base
i ts product portfol i o.
%.onomies of S.ale @ 1ehi nd 12,= s hi gh!. 5arket presence i n
consumer el ectroni cs are two cri ti cal factorsB Its gl obal K scal e
manufacturi ng and hi gh $erti cal i ntegrati on. In CT&s. >hi ch
contri butes -? per cent of the fi $e l i sted compani es sal es of E/!7:-
crore! 12, has consol i dated capaci ti es under the fl agshi p 12, ,td.
1esi des the total capaci ty has been e%panded from 9./: l akhs CT& s
a year to 7:./: l akhs! and 12, pl ans to doubl e i t. If scal e
economi es l owers per uni t cost! 12,= s hi gh degree of $erti cal
i ntegrati on enabl es i t to attai n hi gher $al ue addi ti on for e$ery rupee
of sal es" the group manufactures most cri ti cal components K l i ke
defl ecti on yokes! transformers! and tuners- i n house. In -::-! i n
partnershi p wi th &i deocon! i t took o$er the Dttar 2radesh
go$ernments ai l i ng col our pi cture tube manufacturi ng faci l i ty!
Dptron! under a rehabi l i tati on package formul ated by the 1oard for
i ndustri al and <i nanci al 'econstructi on. The uni t! whi ch was set up
i n techni cal col l aborati on wi th Toshi ba i n 7?9?! has al ready been
refurbi shed and put on stream. The effect of 12,= s cost management
27

i s e$i dent i n -::/-:C despi te a hi gh i nterest burden and the l arge
di scounts offered to the consumers! the a$erage margi n on CT&s
went up by 's. C8:.
Business 0ortfolio
Cl earl y! the groups cash-cow i s i ts T& busi ness! whi ch contri butes
// per cent of i ts sal es. #ccordi ng to 5#'6-3'6! the market
research fi rm! 12, has a market share of 7? per cent. <or at l east
three to four more years! CT&s wi l l conti nue to dri $e 12,= s re$enues
and earni ngs. 0fforts ha$e been made wi thi n the company to
i mpro$e i ts di stri buti on network and systems wi th a $i ew to achi e$e
i mpro$ement of ;ual i ty and they ha$e al so effected a reorgani (ati on
of markets and di stri buti on teams of i ts $ari ous group compani es by
bui l di ng a central marketi ng organi sati on whi ch ensures that the
company conti nues to react fast to changi ng market condi ti ons. Thi s
re-organi sati on was compl eted i n 5arch :/.
&+% A0s
0ROD(C& "$)SI S B C&*CS
Col our tel e$i si ons account for /F. of al l T& sets sol d i n Indi a ! -7L
CT& i s the l argest sel l i ng product i n CT&= s. #t present the market i s
i n a growth stage and currentl y there i s a boom i n the market. 12,
i s produci ng e%pected products whi ch has a set of attri butes and
condi ti ons that buyers normal l y e%pect and agree to when they
purchase a product. In thi s category 12, offers features such as 78:
28

programs Hchannel sI! Cabl e readi ness! 1ass e%pander! Chi l d l ocki ng
and a host of others. 1ut of l ate! i t has started maki ng #ugmented
products that meets the customers desi res beyond thei r
e%pectati ons. The up gradati on of product ;ual i t y i s through
di gi tal i (ati on and accordi ngl y the company i s comi ng out wi th a
range of hi gh end di gi tal products l i ke di gi tal camera! di gi tal home
theater systems and di gi tal $ersati l e di sc pl ayer. In the tel e$i si on
i ndustry! i t i s the product! whi ch dri $es the brand. 12, i s l aunchi ng
new products to wi den i ts product mi %. 12, i s l engtheni ng i ts
product l i ne of CT&= s by addi ng more i tems wi thi n the l i ne= s present
range.
29

+OM% 00$I "C%S 0ROD(C&S
0rodu.t Range
0rodu.t Spe.ifi.ations
B0$ $%R Spe.ifi.ations
2ri ce 's H5'2I 7/?::
1rand 12,
)creen )i (e HInchesI -:
Type of )creen )TD
)ound 3utput H>attsI 7-8
Chi l d ,ock 0)
'emote 0)
Channel )can 0)
)ound Mual i ty )T0'03
#uto &ol ume ,e$el l er 0)
5ul ti ,anguage 3)D 5enu +o
>arrant y ears 7
B0$ !&R Spe.ifi.ations
30

2ri ce 's H5'2I F@?:
1rand 12,
)creen )i (e HInchesI 7C
Type of )creen )TD
)ound 3utput H>attsI 7@
Chi l d ,ock 0)
'emote 0)
Channel )can +o
)ound Mual i ty 53+3
#uto &ol ume ,e$el l er +o
5ul ti ,anguage 3)D 5enu +o
>arrant y ears 7
31

B0$ ,+R Spe.ifi.ations
2ri ce 's H5'2I +#
1rand 12,
)creen )i (e HInchesI -:
Type of )creen <<)T
)ound 3utput H>attsI -C:
Chi l d ,ock 0)
'emote 0)
Channel )can 0)
)ound Mual i ty )T0'03
#uto &ol ume ,e$el l er +o
5ul ti ,anguage 3)D 5enu +o
>arrant y ears 7
B0$ %M0%ROR II Spe.ifi.ations
32

2ri ce 's H5'2I 7FFC:
1rand 12,
)creen )i (e HInchesI -7
Type of )creen )D20' <,#T
)ound 3utput H>attsI -C:
Chi l d ,ock 0)
'emote 0)
Channel )can 0)
)ound Mual i ty )T0'03
#uto &ol ume ,e$el l er 0)
5ul ti ,anguage 3)D 5enu +o
>arrant y ears 7
33

B0$ "SR>3D Spe.ifi.ations
2ri ce 's H5'2I 88??:
1rand 12,
)creen )i (e HInchesI -?
Type of )creen )D20' <,#T
)ound 3utput H>attsI 7-:
Chi l d ,ock 0)
'emote 0)
Channel )can 0)
)ound Mual i ty )T0'03
#uto &ol ume ,e$el l er 0)
5ul ti ,anguage 3)D 5enu +o
>arrant y ears 7
34

B0$ "%0&("% Spe.ifi.ations
2ri ce 's H5'2I 79F?:
1rand 12,
)creen )i (e HInchesI -7
Type of )creen <<)T
)ound 3utput H>attsI -C:
Chi l d ,ock 0)
'emote 0)
Channel )can 0)
)ound Mual i ty )T0'03
#uto &ol ume ,e$el l er +o
5ul ti ,anguage 3)D 5enu +o
>arrant y ears 7
C&%GO
R)
Models 0ri.e Range Segment
Share
7CL 4)' 7C 4T'7C 's. 9?::-??:: 7@.
-:L ,C' -: ,&' -: 's. 77?::- C7.
35

78C::
-7L <2' -7! <>' -7! <D'
-7! <M' -7! <T' -7!
<*' -7! <N' -7.
's. 7/8::-
7?:::
/9.
-8L 1N' -8 1MD' -86 's. -::::-
--8::
8.
7?L +M' -? +M' -? 2) 's. -F:::-
-??::
7.
12, has al so i ntroduced the concept of l i ne featuri ng by promoti ng
l ow-end promoti onal model s to ser$e as traffi c bui l ders to attract
new buyers.
The other bi g factor i n the -7L segment i s the gradual shi ft to the
<G<)T Hful l and fl at s;uare tubeI! whi ch al l ows for better $i ewi ng.
Indi a i s e%pected to go the way of the rest of the worl d whi ch prefers
<G<)T. 5+C= s ha$e been promoti ng <G<)T i n a bi g way because
the margi ns are hi gher there. 0$en as more consumers are wi l l i ng to
wri te out bi g che;ues for feature packed T& sets! enormous
potenti al i s crystal l i (i ng bel ow. In the market cal l ed Indi a! the best
and the obsol ete products both can sel l si de by si de i n substanti al
numbers.
36

#ashing Ma.hine
B0$ BSAED Spe.ifi.ations
2ri ce 's H5'2I 7//C8
1rand 12,
Type <D,, #DT3
,oadi ng Top
)i (eH4gsI C.8
*ot water 3pti on +o
)el f Ti mer 0)
2reset washes +o
Detergent Di spenser +o
Di gi tal Control s 0)
'at 5esh 0)
>arrant yHearsI -
Castors +o
B0$ BS AE D%$(2% :A'E !g;
Other ,eatures@
#ppro%. 2ri ce 's. 7-!/-F
<ul l y automati c
37

Top ,oadi ng
Mui et operati on
2erfect water control
#uto softener di spenser
)afet y de$i ce to pre$ent o$er heati ng
0ros@ 2ri ce! performance! l ow el ectri ci t y consumpti on!
Cons@ +o hot water wash.
B0$ BS AE SD :A'E !g;
Other ,eatures@
#ppro%. 2ri ce 's. 78!:F:
Top ,oadi ng
Mui et operati on
#uto softener di spenser
)afet y de$i ce to pre$ent o$er heati ng
Cycl e end bu((er
B0$ Distribution netFork
38
12, <actory
1ranch TownsOCG<
Distributors

12, has about 9::: deal ers al l o$er Indi a. It regul arl y conducts
deal ers meets to tel l them about i ts new product and future pl ans.
The l atest bei ng Techno )ummi t = :/ hel d i n month of December. The
meet was hel d i n the ci ti es of 1agal ore! *yderabad! Cal cutta!
Chennai ! +ew Del hi ! 4ochi and ,ucknow.
0RICI"G O, CO$O(R &*CS
The demand for CT&s i s sensi ti $e to i ts pri ci ng. >i th a l i ttl e
reducti on i n pri ces the demand shoots up rapi dl y. The maj or barri er
to penetrati on and market e%pansi on has been the hi gh pri ce i n
rel ati on to purchasi ng power of an a$erage Indi an. In order to pri ce
open and e%pand the market! manufacturers are bout to adopt
strategi es to l ower pri ces. 12, has been affected by pri ce cuts of i ts
competi tors wi th i ts market share fal l i ng to --. at present. >i thi n
the new pri ce paradi gm a brand such as 12, woul d conti nue to
command a premi um o$er other brands! due to a hi gher percei $ed
;ual i ty and the brand $al ues i t enj oys. 12, went for ;ui te a few
promoti onal schemes l ast year. 'egul arl y droppi ng pri ces create a
39
'etailers
12, 6alleries Direct Dealers
Customers

di ssati sfacti on among the consumers who ha$e bought the same
CT& 5odel earl i er.
CT&s $al ue and pri ce are currentl y percei $ed i n /:OF: rati o whi ch
means that Indi an consumers sti l l go for the l ower pri ced $ersi ons!
or atl east a maj ori ty of them. 12, has pri ced i ts products i n such a
way that i t can cater to al l category of buyers. The company has
been $ery aggressi $e i n i ts pri ci ng whi ch has l ed to a sal es strategy
of recei $i ng 7::. ad$ance payment from i ts deal ers and gi $i ng i ts
deal ers a margi ns of about 7:. on the 5'2. Though the effecti $e
margi n recei $ed by the deal ers i s effecti $el y the l owest for 12,
CT&= s ! yet i t gi $es them hi gher turno$er whi ch ul ti matel y l eads to
hi gher profi ts. 'ecentl y three successful pri ci ng strategi es whi ch
recei $ed o$erwhel mi ng consumer response wereB
<i nanci ng at :. rate of i nterest
+o profi t +o l oss sal e scheme for i ts best deal ers i n Del hi .
#ttracti $e pri ce reducti on due to i n-house de$el opment of some
components.
CT& i ndustry i s wi tnessi ng a general trend towards l ower pri ces.
+ew CT& sets come cheap! thanks to e%change meal s and easy
fi nance offered by l easi ng CT& manufactures. 2ri ci ng of CT&= s i s
40

done more on $al ues percei $ed by the customer and l ess on cost
pl us markup basi s.
12, i s tryi ng to reduce costs as a resul t of concentrated effort by
the company= s desi gners! engi neers and $endors to reduce them. It
i s usi ng opti onal feature pri ci ng! speci al e$ent pri ci ng and l ow
i nterest fi nanci ng as forms of promoti onal pri ci ng.
0ROMO&IO" MI2
The i ncreasi ng competi ti on i n col our tel e$i si on i ndustry has forced
the marketers to go for i nno$ati $e promoti onal schemes. The total
amount to be spent on ad$erti si ng and promoti on by 12, i s 's. /7:
crore thi s year. It spent 's. -C: crore i n -::/.
12, rel i es more on consumer pul l type of promoti onal strategy. The
effecti $eness i .e. bal ance of push $s pul l tends to $ary across
regi ons i n Indi a. In consumer el ectroni cs i ndustry! the north and
west are seen to respond more to push and the east and south are
comparati $el y brand l oyal . #s competi ti on hei ghtens! compani es are
bei ng compel l ed to conti nual l y wi den thei r product range. Thei r
i n$estment i n tool s! used to make di es and ki ts of CT&s! are ri si ng!
12, l aunches four to fi $e model s each year. They ha$e fi $e tool s
and each tool costs 's. 8 crore to set up. The brand bui l di ng acti $i t y
has become i mportant for al l the compani es and thi s basi cal l y to
41

keep themsel $es updated wi th consumers percepti on of a parti cul ar
brand.
12, has around 7@: e%cl usi $e showrooms at pri me l ocati ons across
the country cal l ed 12, gal l eri es that stock and di spl ay onl y 12,
products. The mai n obj ecti $e of 12, gal l eri es i s to show the publ i c
the wi dth of 12,= s product range! bui l d corporate i mage and sal es.
12, had announced end of i ts mul ti -crore associ ati on wi th #mi tabh
1achchan i n -::/ si nce hi s popul ari t y i s on a down swi ng i n T&
commerci al s and medi a campai gns! especi al l y i n metros and urban
centers. Currentl y 12, i s usi ng #mi tabh 1achchan onl y for i ts rural
marketi ng campai gns. 12, wi l l al so e%i t from ni che programs l i ke
12, 3ye! the popul ar *i ndi fi l m song countdown show on Channel &
due to the fact that i t has been unabl e to ;ual i tati $el y di fferenti ate
from competi ti on and retai n edge i n thi s genre of progammi ng. It i s
tryi ng to bui l d an emoti onal bond wi th consumers. It mo$ed to
establ i sh a bond wi th the younger generati on the key to future
market l ay i n tyi ng the brand i n i ne%tri cabl y wi th entertai nment. The
commerci al i nspi red by the bl ockbuster mo$i e! P *ome #l one= e$oked
sympathi es Hthanks to the ki dI and warmed i ts way i nsi de e$ery
fami l i es heart 12, i s proj ecti ng i tsel f as a company many
ad$erti si ng entertai nment products.
42

12, has deci ded to capi tal i se on Indi a= s near K rel i gi ous fe$er for
the game and get i nto cri cket K rel ated sponsorshi p i n a bi g way i n
the Cri cket >orl d Cup i n-::/. 12, has al so l aunched i ts 2l ayer K
of-The K>eek program for i nternati onal cri cketers on whi ch i t i s
spendi ng 's. -.8@ crore.
Competitors@ )amsung has announced that i t woul d si gni fi cantl y
i ncrease i ts ad$erti sement and promoti on spendi ng and ha$e new
promoti ons duri ng the forthcomi ng Cri cket >orl d Cup 2hi l l i ps i s al so
focussi ng on brand bui l di ng ri di ng on the back of the youthful i mage
them and offeri ng the l atest technol ogy products at competi ti $e
pri ce. #kai i s offeri ng $ari ous e%change schemes to boost i ts sal es.
In l ast - years i t had come out wi th more than 77 such schemes.
"$)SI S
43

It i s the tendency of company to ac;ui re a maj or share i n the
market. +ow ;uesti on ari ses how to achi e$e i t Q
#ny consumerabl e product that has been l aunched i n the market to
face competi ti ons! whether i t i s &i deocon Internati onal ! Daewoo or
12, al l ha$e to face neck to neck competi ti on. In the company
duri ng Deewal i festi $al ! al l the compani es are engaged i n e$ol $i ng
technol ogi es to attract the customers. 0$en they are ready to
sponsor the nati onal and i nternati onal games. 'ecentl y Compani es
l i ke 12, and &i deocon ha$e announced an a$erage of i ts
ad$erti sement and promoti onal spendi ng.
*ID%OCO" I"&%R"&I O"$ $IMI&%D
Introdu.ti on
&i deocon i nternati onal ,td H&I,I! the fl agshi p company of the
&i deocon 6roup i s a l eadi ng producer of tel e$i si on sets! audi o and
44

$i deo systems! #ggressi $e marketi ng! l aunch of i nternati onal ;ual i ty
goods at l ower pri ces! and a strong di stri buti on network ha$e made
&i deocon a househol d name. It enj oys -F. market share i n col our
T&.
Duri ng <y:/-:C! &i deocon +armada 0l ectroni cs! a group company
engaged i n the manufacture of pi cture tubes was merged wi th the
company. The merger wi l l resul t i n backward i ntegrati on benefi ts for
$i deocon.
&i deocon has ti ed up wi th i nternati onal gi ants l i ke )ansui for mi ddl e
range audi o products! Toshi ba for CT&s and &CD 2l ayers. &i deocon
has al so announced a ti e-up wi th kenwood Corp.! Aapan to
manufacture and market 4enwood= s premi um range of audi o
products i n Indi a. The company faces a sti ff competi ti on fol l owi ng
the entry of i nternati onal l eaders l i ke )ony! #kai ! )amsung! and
2anasoni c i nto the Indi an markets.
&i deocon= s proposed di $ersi fi cati on i nto unrel ated areas l i ke
constructi on! power generati on! oi l e%tracti on! and petrochemi cal s
ha$e been shel $ed fol l owi ng a cash crunch wi thi n the group.
&i deocon! howe$er has focussed onl y on i ts core busi ness of
consumer el ectroni cs.
&i deocon keeps i n touch wi th the ti mes! to ensure that the
customers stay ahead o$er the years! &i deocon has offered state-of-
the-art technol ogy and i nternati onal ;ual i ty wi th $ena$kabl e
45

consi stency. +ow i t has a host of i nno$ati $e products l i ke the
2l asma T&! the >ebT&! Degi tal &i deo Di sc! Doubl e cascade
washi ng machi ne! combi refri gerator! the di shwasher - whi ch are
bond to re$ol uti oni (e the l i fe st yl e.
&i deocon has al ways! and wi l l al ways push the fronti ers of
technol ogy to gi $e products that i mpro$e the ;ual i ty of your l i fe. +o
wonder! i t enj oys the trust and confi dence of mi l l i ons of sati sfi ed
customers.
&i deocon has a strong commi tment spanni ng the rapi dl y surgi ng are
of 1usi ness 0l ectroni cs. It ai ms to re$ol uti oni (e the corporate worl d
by l aunchi ng products that l end the cutti ng edge to busi ness
professi onal s. #nd hel p them be ready for the $ari ous chal l enges
that the arena of modern busi ness demands &i deocon has got
together wi th l eadi ng organi sati ons i n the worl d wi th an unfal teri ng
dedi cati on of bri ngi ng onl y the best to be customers.
&i deocon was a rel ati $el y new entrant to the T& market as compared
to others. )ti l l ! i t managed to car$e out a si gni fi cant share of the
market by essenti al l y uti l i si ng two tacti cs. 3ne! i t managed to sel l
cheapl y pl ayi ng on $ol umes and second! i t outsourced many of the
appl i ances i t sol d and managed to get l ong ta% brakes on i ts
manufacturi ng uni ts l ocati ons because of the groups pol i ti cal
connecti ons.
46

These strategi es pai d ri ch di $i dends i n the pri ce sensi ti $e domesti c
market! and the company managed to car$e out si gni fi cant shares i n
most of the consumer durabl es segments. 1ut as the market opened
and became technol ogi cal l y dri $en! &i deocon= s i mage of bei ng a l ow
cost suppl i er became i ts bane! as the consumer normal l y associ ates
pri ce wi th ;ual i t y. Thus! i t l ost i ts l eadershi p i n the CT& market to
12, whi ch was associ ated more wi th ;ual i t y than &i deocon.
*ID%OCO" > MISSIO" "D OB-%C&I*%
Leadershi p
Through
technol ogy
i nnovati on
qual i ty
performance
India 5oday8 the world to"orrow
The &i deocon symbol . It rei terates the ethos of a company dedi cated
to mai ntai ni ng the hi ghest i nternati onal standards of e%cel l ence
through ;ual i ty! technol ogy and i nno$ati on. <or o$er a decade now!
&i deocon has been bri ngi ng the l atest and $ery best i n Consumer
0l ectroni cs and *ome #ppl i ances. )uccessful l y adapti ng the best of
technol ogy to sui t. Indi an needs and crafti ng i t to i mpro$e ;ual i ty of
l i fe K
47

The new )ymbol of &i deocon asserts i ts passi on for gl obal i mpact!
and the two P 0= s on other si de represent to group= s wi de spectrum of
i nterests rangi ng from P 0l ectroni cs to 0nergy= . # symbol that
procl ai ms a paradi gm shi ft. # si gn that represents the new force that
i s &i deocon. Thus recapi tul ati ng own pri nci pl e of reachi ng out and
touchi ng the ti me of mi l l i ons of peopl e worl dwi de.
&+% COM0") S&&(S @ I&S 0%"%&R&I O" I" &+% MR!%&
1usi ness for &i deocon Internati onal ,td. H&I,I has al ways been a
game of growth through rapi d wi deni ng of the fi el d of opportuni ty.
>hi l e trai ni ng out wi de and penetrati ng Indi a to the deepest possi bl e
depths was once the natural future course for thi s di stri buti on dri $en
company! now i t i s an i mperati $e and i t i n$ol $es e$ery department
i ncl udi ng 'GD.
&i deocon bel i e$es that they are the l eaders i n thei r respecti $e
product categori es! 1ut growth made a mi nor come-back i n -::/-:C
thanks to the buoyant CT& market wi th &I,= s turno$er ri si ng by -/..
In -::C-:8 i ts turno$er i ncreased by 7-..
&i deocon has how di $ersi fi ed i tsel f i nto power! petrol eum!
i nformati on technol ogy and 'eal estate.
&i deocon doesn= t consi der competi ti on as a weakness accordi ng to
i t! i t i s the domi nant brand that gets affected by the entry of new
48

comes K That= s the reason they were not surpri sed when thei r CT&
share sl i pped. They were anti ci pati ng i t. &i deocon has been
descri bi ng i tsel f as a l eader o$er. the years. *a$i ng establ i shed
i tsel f as a powerful brand. It has l aunched many sub-brands cateri ng
to defi ned market segments.
They ha$e P 1a(ooka= for the Top-end of the market. <or the mi ddl e
they ha$e P Turbo-tough P and fi nal l y for the younger consumers!
they ha$e the 7CL 2ri $ate. The i mage &i deocon i s of as aggressi $e
technol ogi cal l eader i t was the 7
st
brand to l aunch 2I2! )urround
sound and now 1a(ooka &i deocon i s usi ng i ts brand e;ui ty bui l t o$er
the years to hel p i ts sub-brands.
#l l &i deocon= s products are manufactured i n Indi a! The company= s
state of art pl ants. The l e$el of automati on i n &i deocon pl ants i s
comparabl e to the best pl ants i n the worl d. The company entered
i nto techni cal col l aborati ons wi th $ari ous i nternati onal l y renowned
5+C= s for i ts wi de products. Thi s col l aborati on coul d be further
strai ghtened to mai ntai n &i deocon= s! l eadershi p posi ti on as wel l as
take care of the new brands bei ng i ntroduced i n the market.
#s for as a consumer i s concerned. There i s no di fference between
a )ony made i n Indi a and a &i deocon made i n Indi a.
49

In the bi g ci ti es &i deocon i s maki ng fi rst enough efforts to hang on
i ts current market share. The number i t wants wi l l come from
products desi gned speci fi cal l y for l ow end use.
&i deocon downs to be far ahead parti cul arl y on engi neeri ng products
to sui t l ocal i (ed needs. &i deocon says that the stri ppi ng K down j ob
has to be acutel y market sensi ti $e. )o i t has got a fi % on smal l town
$al ue percepti ons and cut-down those features deemed i rrel e$ant.
#ccordi ng to &i deocon - )atel l i te T&= s bri ngi ng new compl e%i ti es to
demand patterns.
<i $e years ago K smal l towns accounted for fi rst 7. of the brands
CT& $ol umes now the proporti on stands at o$er 7F.. The upshot"
hi gher pri ce real i (ati ons. Deal er margi ns and sundry sel l i ng costs
are l ower i n smal l towns! so &,, gees a l ayer fracti on of the pri ce
the consumer pays. Thi s i s one reason that the strategy i s sound at
l east from a medi um K term poi nt of $i ew. #ccordi ng to &i deocon
competi ti on! i s l ess se$ere further down the town hi erarchy K so
more i n smal l er towns K the hi gher i s the profi tabi l i t y! better
margi ns! better l ogi sti cs and costs.
It coul d be ages before e$eryone i s ready to buy a T&.
&i deocon i s al so tryi ng to break new ground wi th refri gerators and
washi ng machi nes by pl ayi ng the Rpri ce K poi nt gameR
50

&i deocon bel i e$es that stri ctl y geographi cal urban K rural di $i si ons
are unreal i sti c i n a country where l i fest yl es are so di sparate. <or
&i deocon i ts not geographi cal any more but a functi on of soci o-
economi c beha$i ours.
&i deocon had started sel l i ng Toshi ba and )ansui as premi um CT&
brands K whi l e )ansui fl anks &i deocon! the brand Toshi ba wi l l
spearhead the company= s proj ecti on of ;ual i ty.
+eedl es to say! &i deocon i s banki ng hea$i l y on effi ci ent operati ons!
wi th money bei ng puri fi ed mai nl y i nto thi ngs whi ch del i $er resul ts! to
mai ntai n the pri ce ad$antage i t enj oys i n so many markets. 1etter
computer software i s another bi g hel p. The company i n$ested 's. @:
crores on software i n -::8.
Domesti cal l y! by -::8-:@! the company e%pects to be sel l i ng 7@
mi l l i on CT&s. 1ut! by seei ng the commandi ng hei ghts the consumer
el ectroni c busi ness i t wants i ts annual capaci t y of CT& to be /.8
mi l l i ons.
51

%=er/ #here and ,or %=er/ bod/.
&+% A 0CS
0ROD(C& "$)SI SG 0RIC% "$)SI S
C#T063' Model 0ri.e
/@ cm /@87 '
/@:? '
/@7F '
77!C?:
?!??:
9!??:
87 cm 87--'
87-:'
7/!??:
77!??:
8/ cm 8C7C'
8C-: '
-:!C?:
7@!??:
F8:7 //!??:
52

Feature !" #ide!c!n 25 Ba$!!ka B! %&400'(
9@ 2rogram #uto )earch 5emory
Computer Control l ed sel f Demonstrati on
<l at G <rui t s;uare Tube
Cabl e 'eady- *yper 1and Toner
1a(ooka >orfee
-:: > 2523
CD Comparabl e
Chi l d l ock
Channel )can
Bazooka Impa.t :EA7A R;
7:: programs auto search memory
personal 2reference on each of 7:: programs
<l at and <ul l s;uare Tube
Computer control l ed sel f demonstrati on
53

Tabl e ready K ) G *ypes band Tuner
1a(ooka >oofer
-:: > 2523 )ound output
CD Compati bl e
Chi l d l ock
Channel )can
'i ght from the start! &i deocon has endea$ored to enhance the
;ual i ty of l i fe. 1reaki ng new grounds i nno$ati ng. 0%pl ori ng the
worl ds most ad$anced technol ogi es to gi $e the customer the fi nest
product.
&i deocon - Trul y the pi oneers i n taki ng technol ogy to Indi an homes.
&i deocon has a l ot of P <i rsts= . to i t= s credi t l i ke Indi a= s fi rst
Tel e$i si on wi th 2I2 H2i cture i n 2i cture! <)<T *i l l fl at s;uare TubeI!
)urround sound and al so the 1a(ooka Technol ogy
#s far as the pri ci ng pol i cy of &i deocon i s consi dered! Ini ti al l y the
pol i cy adopted by &i deocon was to sel l cheapl y whi ch pai d ri ch
returns i n the pri ce sensi ti $e domesti c market. 1ut now where
consumers are no l onger pri ce sensi ti $e K The market i s more
technol ogi cal l y dri $en. They ha$e started associ ati ng pri ce wi th
54

;ual i ty and started consi deri ng &i deocon= s product as l ow ;ual i ty.
Thi s was the 7
st
step and company started l aunchi ng good
technol ogi cal l y product= s whi ch were hi ghl y pri ced K and took
col l aborati on to l aunch forei gn brand names i n the hi gher segment
of the soci et y and keepi ng i ts i mage as i t was for the pri ce sensi ti $e
customer
0%change offers! schemes! gi fts were some of the promoti onal
tool s adopted by &i deocon
#s wel l as fi nanci ng schemes and good deal er margi ns.
Model "ame Des.ription
0ri.e
:Rs';
&-+#-@8 +<
&ID03C3+!ful l y auto!top
l oadi [email protected] H4gsI!*ot water
3pti on!)el f Ti mer
7@??:
&-2-7::: #<DC
&ID03C3+!ful l y auto!top
l oadi ng!7: H4gsI!)el f Ti mer
-???:
7-77
&ID03C3+!ful l y auto!top
l oadi ng!C.8 H4gsI!)el f Ti mer
7@C::
&-2-:@:: #<
&ID03C3+!ful l y auto!top l oadi ng!@
H4gsI!)el f Ti mer
7???:
&-2-C8 <DN
&ID03C3+!ful l y auto!top
l oadi ng!C.8 H4gsI!)el f Ti mer
7--?:
&-2-88 1T
&ID03C3+!semi auto!top
l oadi ng!8.- H4gsI
9??:
55

&-+#-F: T)
&0D03C3+!semi auto!top
l oadi ng!F H4gsI!)el f Ti mer
9??:
&-+#-?77 <
&ID03C3+!ful l y auto!top l oadi ng!C
H4gsI!)el f Ti mer
7-C?:
&-2-:F:: #<
&ID03C3+!ful l y auto!top l oadi ng!F
H4gsI!)el f Ti mer
-/??:
&-+#-88: TDN
&0D03C3+!semi auto!top
l oadi ng!8 H4gsI!)el f Ti mer
9@?:
&-+#-/8 TDN
&ID03C3+!semi auto!top
l oadi ng!/ H4gsI!)el f Ti mer
8C?:
&-+#-88: T
&ID03C3+!semi auto!top
l oadi ng!8 H4gsI
9@?:
*ID%OCO" AE ,D2 :A!gs;
Other ,eatures@
#ppro%. 2ri ce 's. 7-.??:
<ul l y automati c
Top ,oadi ng
Capaci ty C 4g
@ wash programmes
#uto soak
)tai nl ess steel drum
*ID%OCO" E4 &
Other ,eatures@
56

#ppro%. 2ri ce 's. F!C?:
)emi automati c
Top ,oadi ng
*ID%OCO" EE ,
Other ,eatures@
#ppro%. 2ri ce 's. 7C!??:
<ul l y automati c
Top ,oadi ng
*ID%OCO" EE &D2
Other ,eatures@
#ppro%. 2ri ce 's. 9!-?:
)emi automati c
Top ,oadi ng
*ID%OCO" 64 B&
Other ,eatures@
#ppro%. 2ri ce 's. 9!??:
)emi automati c
Top ,oadi ng
57

*ideo.on *>"> 6E ", Spe.ifi.ations
2ri ce 's H5'2I 7@??:
1rand &ID03C3+
Type <D,, #DT3
,oadi ng T32
)i (eH4gsI @.8
*ot water 3pti on 0)
)el f Ti mer 0)
2reset washes 0)
Detergent Di spenser 0)
Di gi tal Control s 0)
'at 5esh +o
>arrant yHearsI -
Castors 0)
58

*ideo.on *>0>7444 ,DC Spe.ifi.ations
2ri ce 's H5'2I -???:
1rand &ID03C3+
Type <D,, #DT3
,oadi ng T32
)i (eH4gsI 7:
*ot water 3pti on +o
)el f Ti mer 0)
2reset washes 0)
Detergent Di spenser 0)
Di gi tal Control s 0)
'at 5esh 0)
>arrant yHearsI -
Castors 0)
59

Distribution
&i deocon has a net work of o$er C::: deal ers! backed by o$er 9:
ser$i ce centres al l are Indi a! e;ui pped wi th the l atest technol ogy
and manned by ski l l ed techni ;ues trai ned as per i nternati onal
norms.
DIS&RIB(&IO" "%&#OR!
60
Factory
Distributors
Retailers
Vieocon
!la"a
Direct
Dealer
s
Consu#ers

0ROMO&IO"
#s competi ti on i ncreases! compani es are forced to conti nual l y
i ncrease thei r product range wi th an i ncrease i n the number of sub-
brands and conti nuousl y ad$erti se and promote thei r product so i t
reaches to the ri ght customers. Therefore i t has forced the
marketers or the producers to go i n for new promoti onal schemes
and i ncenti $es whi ch mi ght l ook attracti $e to the buyers.
<ew years back! &i deocon was 3kay wi th umbrel l a brand
ad$erti si ng! wi th the spotl i ght on CT&= s .
&i deocon created sub-brands such as 1a(ooka! Chal l enger!
1udgeti ng and <reedom and the communi cati on went from generi c
to speci fi cL i t happened wi th al l the product categori es and
accordi ng to the company! i t was the fi rst to take a l ead. Though
there was sub-brands K P i nno$ati on= and P technol ogy= were to remai n
the t wo key factors i n accentuati ng the o$eral l brand i mage.
In CT&= s 1a(ooka= s campai gn pl ays on sound ;ual i t y. 2ri $ate K the
7C-i nch CT& i s ai med at young peopl e who want thei r own CT& sets.
61

&i deocon= s urban ad$erti si ng conti nues to bui l d brand $al ues for the
products! and deal ers are offered mega i ncenti $es.-They were
offered 5ercedes car and forei gn tri ps i n -::C-:8
1ut &i deocon was drawn i nto promoti ons ri ng to . In 5arch -::C i t
l aunched i ts P 5oney K back offer= a uni ;ue scheme for the -7-i nch
1a(ooka H's. 7C!??:I and the 7C-i nch pri $ate H's. 8!??:I! through
whi ch &i deocon promi ses to return the enti re money i n si % Kyears for
1a(ooka and 8 years for the other two.
0arl i er i n -::C! &i deocon l earnt from bankers that i ndi $i dual s were
stashi ng away l arge sums of money i n banks. # ;ual i tati $e study
confi rmed suspi ci on that much money was bei ng sa$ed to make bi g-
ti cket purchases l ater. 'epl acement market buyers are al l the more
on wi th postponement. )o a re$erse K credi tL scheme was de$i sed
to get that money out of the bank on the assured that the money
woul d be returned l ater. 0ffecti $el y &I, has taken l oans from
customers and pai d al l the i nterest i n ki nd HCT&= sI strai ghtaway.
Though &i deocon i s hea$i l y i nto ad$erti si ng but i t i s not i nto
cel ebri ty ad$erti si ng l i ke 12, i s but sti l l i t has l eft an i mpact on the
consumer= s mi nd about i ts products because they consi der
themsel $es as a domi nant brand and the l eader i n the CT& market.
62

M"CCS
SMS("G +OM% 00$I "C%S
)amsung= s el ectroni cs rel ated busi nesses consti tute the l argest
chunk of the 6roup= s o$eral l busi ness *ere i s a bri ef descri pti on of
compani es and thei r respecti $e products associ ated wi th el ectroni cs
and communi cati on.
COM0"I%S R%$&%D &O %$%C&RO"ICS I"D(S&R)
The )amsung compani es rel ated to the el ectroni cs i ndustry i ncl ude
)amsung 0l ectroni cs! )amsung )DI! )amsung 0l ectro-5echani cs!
)amsung Comi ng! and )amsung )D). These affi l i ates produce!
market! and sel l a wi de $ari ety of el ectroni c parts and components
Hi ncl udi ng ne%t generati on memory chi ps! computer and
tel ecommuni cati ons e;ui pment! col or T& pi cture tubes! and gl ass
bul bsI. They al so de$el op computer systems and produce general
el ectroni cs and preci si on machi nes.
#l l these compani es share the same goal of becomi ng worl d-cl ass
hi gh-tech compani es by earl y i n the -7st century and are
concentrati ng thei r i n$estments i nto promi si ng future fi el ds to
achi e$e that target. Despi te bei ng i ndependent! systemati c
cooperati on takes pl ace bet ween the compani es that enabl e the
de$el opment of state-of-the-art el ectroni c products.
63

)amsung 0l ectroni cs! the worl dS s l eadi ng maker of memory de$i ces!
al so l eads the worl d semi conductor i ndustry i n de$el opment after
desi gni ng a -8@-megabi t D'#5 Hdynami c random access memoryI!
al -gi gabi t D'#5! and the enti re producti on process technol ogy for C-
gi gabi t D'#5). )amsung 0l ectroni cs not onl y produces for the
worl d i nformati on area Htel ecommuni cati on e;ui pment for system
and network busi nessesI! but al so creates a ri ch l i fe for peopl e
through de$el opi ng el ectri c appl i ances and di gi tal and mul ti medi a
products bui l t around the l atest technol ogi es.
)amsung )DI puts much energy i nto de$el opi ng new products and
furtheri ng new hi gh-tech busi nesses through securi ng future cutti ng
edge technol ogy to react i mmedi atel y to changes i n the di spl ay
busi ness en$i ronment. )amsung )DI recei $ed attenti on from the
di spl ay busi ness by i ntroduci ng Dynafl at! the worl dS s best l e$el of
compl etel y fl at 1raun tubes and from de$el opi ng C--i nch and 8:-i nch
2D2s successful l y to di $ersi f y fl at di spl ay products. )amsung )DI
i s al so accel erati ng the de$el opment of 0<D and <0D.
SMS("G %$%C&RO M%C+"ICS
)amsung 0l ectro-5echani cs! a l eadi ng el ectroni cs and el ectri c parts
and components manufacturer! concentrates on de$el opi ng and
produci ng promi si ng new products such as mul ti -l ayer pri nted ci rcui t
boards H5,1sI! chi p de$i ces! parts for mobi l e communi cati ons! and
64

opti cal Othi n-fi l m components. >i th ?:. of the re$enue comi ng from
e%ports! the company has posi ti oned i tsel f as a worl dwi de parts
manufacturi ng company and i s now ad$anci ng i nto the Internet
busi ness. Current pl ans cal l to concentrate on Internet rel ated
products based on '< Hhi gh fre;uencyI technol ogy.
M"(,C&(RI"G
,or C&*s and Mi.roFa=e o=ens
$o.ation @ "oida H (ttar 0radesh
)amsung Indi a has a state-of-the-art manufacturi ng faci l i ty for
col our tel e$i si ons and mi crowa$e o$ens at +oi da. )et up wi th an
i n$estment of 's.?: crores! thi s hi ghl y automated faci l i ty has a
manufacturi ng capaci ty of 8::!::: uni ts per annum. )amsung Indi a
i s manufacturi ng CT$s i n the 7CR--?R si (e segment at thi s faci l i t y.
>i th a faster and fl e%i bl e producti on system i n pl ace! the Company
i s stri $i ng for greater customer sati sfacti on by maki ng a$ai l abl e the
ri ght product mi % to the customer! i n ti me! and at the ri ght pri ce.
The )amsung Indi a CT& faci l i ty recei $ed I)3 ?::-! Certi fi cati on
from 1)I! D4 and )TMC! Do0 wi thi n el e$en months of commenci ng
producti on! faster than any other )amsung subsi di ary. >i th the
l atest most! ad$anced manufacturi ng e;ui pment l i ke #uto Inserti on
5achi nes! #uto 2C1 Tester! #utomati c 5odul e Con$eyor! *i gh
65

temperature testi ng HC8-8:3CI! 'el i abi l i ty test! preci si on
measurements of CT&)! the )amsung CT& faci l i ty i s ful l y geared for
hi gh speed! hi gh $ol ume and $ery hi gh ;ual i t y producti on.
Mi.roFa=e O=en ,a.ilit/ @ )eei ng the hi gh potenti al for the product
category! )amsung Indi a set up a producti on l i ne for mi crowa$e
o$ens at +oi da i n 5arch S ??. )amsung i s manufacturi ng al l the
currentl y a$ai l abl e mi crowa$e o$en model s i n the market at thi s
faci l i t y! whi ch has a producti on capaci ty of 8:!::: uni ts per annum.
)amsung whi ch i s the worl dS s fastest producer of mi crowa$e o$ens
ha$i ng manufactured 8: mi l l i on mi crowa$es i n a short span of 7?
years! i s produci ng mi crowa$es i n the -:--9 l i tre capaci ty range i n
Indi a.
66

SMS("G +OM% 00$I"C%S 0ROD(C&S
Mi.roFa=e O=en
79IE">S
,eatures
F 2ower ,e$el s
#utomati c Defrost 2rogramme
-C-hr Di gi tal Cl ock
?? 5i nute Ti mer
6l ass turntabl e
Spe.ifi.ations
Capaci tyB
)paci ous -/ l i tres H:.9 cu.ftI o$en capaci ty
67

2ower 3utputB
98: >atts 5i crowa$e
@ 2ower l e$el s for cooki ng $ersati l i ty - defrost! reheat
and cook
#uto 2rogrammesB
#uto boi l - boi l s ri ce and $egetabl es wi th a si mpl e
touch of the #uto 1oi l function
#uto defrost
#uto reheat - dri nks! chi l l ed and fro(en meal s
TD)B
Tri pl e Di stri buti on )ystem! di stri butes mi crowa$es
e$enl y throughout the o$en! so that food i s cooked
e$enl y throughout
Desi gnB
Cl ear digi tal di spl ay for accurate i nformati $e control
#dds styl e and i mpact to your ki tchen
Touch sensi ti$e control panel for ease of use
Di mensi ons H0%ternal w % h % dIB
C9?mm%-F8mm%/?/mm
68

Col oursB
>hi teO)i l $er
69

M798D"S
,eatures
2ower 3utput - 98: >atts 5i crowa$e
#uto 2rogrammes
TD)
70


O&+%R 0ROD(C&S
DIGI&$ &*
> >orld= s first to de$elop HS ?F.7-I and mass-produce
HS ?9. 7:I
- )upport hi gh screen cl ari ty and ha$e Dol by )urround
)ound
- #dopts hi gh resol uti on and doubl e progressi $e scan
methods
- Di gi tal Con$ersi on
- *i gh fi del i ty C: watt! --way! C-speaker system
- 2I2 H2i cture In 2i cture
71

,lat>s.reen &*
- Compl etel y fl at 1raun tube! whi ch al l ows for a screen
wi thout cur$es
- Di storti on-free screen
- #dopts a / di mensi onal di gi tal comb fi l ter for a more
detai l ed pi cture
- The automati c control ci rcui t recreates natural !
ori gi nal col ors
- 2owerport speaker system makes you feel as i f you
were there
72

Marketing and
)randing
Strategy
73

MR!%&I"G "D BR"DI"G
S&R&%G)
MR!%&I"G S&R&%G)
<ollowing are the key dri$ers of profitability in this industryB
*olume GroFths@ The low penetration le$els of these products is a big
opportunity area and the industry is strongly taking this route of increasing the
production and sales $olumes in order to make the most of the economies of
scale. >ith increasing consumption! the raw material prices ha$e been mo$ing
southwards! thereby enabling better profitability
0rodu.t Mi1 management@ The challenge is to be able to ha$e a healthy mi% of
high-end products contributing to the bottom-line. This can only be achie$ed by
offering products which are uni;ue and where the customer sees $alue in his
purchase. The customer is ready to pay more if she feels that she is getting
something! which will impro$e her life and enhance her lifestyle.
0rodu.t Inno=ations@ It is also important to catch the changing trends in
consumer lifestyles and offer the right product at the right time. 1asically! the
Companies must inno$ate on a continuous basis in keeping with the changing
consumer needs and to differentiate in the market.
74

Operational effi.ien./@ It is important to gain o$erall operational efficiencies like
in$entory management H3$erall in$entory less than 78 daysI! debtors
management HIdeally nil bad debts and (ero days operationI. # good! committed
and loyal network also contributes significantly to the bottom line.
&e.hnologi.al ad=an.ements@ Inno$ations and in$entions will play a major role
in shaping of this industry=s future. Technological ad$ancement has always been
at the back of most of the peaks in this industry=s growth. 'ight from the
introduction of colour picture tube to the recent technological ad$ancement of
C'Ts becoming pure flat! technology is the prime booster for this industry.
#d$ancements in future technologies like the ,CD panels and D&D recorders
and the like will critically impact the industry. It is e%pected that by -::9! // per
cent of the worldwide demand will be met by ,CD T&s and 2lasma T&s.The core
to handling $arious market challenges is to protect the bottom line while being
competiti$e in the market.
Brand 0ositioning@ 0$ery purchase of the consumer is not guided by the
cheapest of the prices! but by the benefit that the Customer percei$es for the
in$estment planned . *ence! it is critical to be appealing to the image seekers
while being rele$ant to the $alue for money seeker. >ith lifestyles impro$ing and
becoming important to indi$iduals= personalities! the brand=s positioning and its
rele$ance to the consumer will become more important than e$er before.
Customer Relationship Management@ The e%perience that the consumer goes
through during the entire purchase cycle and the post purchase usage
e%perience is critical to the organisations= future business. 5anaging customer
75

relations and the e%perience that is offered to her throughout will be a challenge
for all players.
Channel Management@ # strong influencer on the buying decision is the
network! and the organisation that manages the network better! has a substantial
edge o$er others.
The past couple of years could be termed as the most dynamic years in the
history of this industry. The rise of 5+C brands and its ad$erse effect on the
Indian counterparts. 5any Indian brands ha$e become almost e%tinct. <ew
Indian brands who ha$e not only sur$i$ed but ha$e grown during this period.
Today! 3nida G &ideocon enjoy a high brand salience and is seen as a trusted
and reliable brand! with a $ery high degree of product satisfaction among its
users.
Ser=i.e and Jualit/ - 6i$en that T& is a high-ticket purchase! the consumer
needs a strong reassurance from the brand in terms of reliability. ,ongstanding
brands that ha$e pro$en track record of trouble-free product performance score
on this parameter. ,ike any product! electronic goods suffer wear and tear.
MR!%&I"G ? BR"DI"G S&R&%G) O, $G %$%C&RO"ICS
I"DI 0*&' $&D'
,6 0lectronics India 2$t. ,td.! a wholly owned subsidiary of ,6 0lectronics!
)outh 4orea was established in Aanuary 7??F in India. It is one of the youngest
consumer durable brands in the country today! encompassing an impressi$e
76

portfolio of Colour Tele$isions! >ashing 5achines! #ir-Conditioners! 5icrowa$e
3$ens! 'efrigerators HDirect Cool and <rost <reeI! 2Cs! &acuum Cleaners!
optical storage de$ices and 6)5 mobile phones. During the ten years of its
e%istence in India! ,6 has earned a premium brand positioning due to its
superior ;uality! high product performance! re$olutionary technological deli$ery
and warm ser$ice. In fact! today ,6 is recogni(ed as a leader in setting industry
norms starting with the fastest e$er-nationwide reach! latest global technology
and product inno$ation.
The success in India has been phenomenal and >e foresee the Indian
subsidiary to contribute to 7: per cent of the total worldwide turno$er by -:7:.
The success is attributed to the employees who ha$e made all efforts to make
the company grow strength in strength. The 2une factory is in line with the parent
company=s strategy of using the Indian subsidiary as an e%port hub for se$eral
)outh #sian countries!L once said by 5r. ). ). 4im! &ice Chairman G C03 of
,60 . ,6 India will become the e%port hub for ,6 worldwide catering to the
5iddle 0ast and #frican markets. The company aims to touch an e%port turno$er
of D)D / billion by -:7:! which will contribute to /: per cent of ,60I,=s turno$er.
The contribution of mobile phones and IT will be @8 percent while the rest /8 per
cent will be from Consumer 0lectronics and *ome #ppliances
*ision 3474
>ith a strong 'GD and e%port focus! ,6 India intends to become a D)D 7:
billion company by -:7: of which /: per cent will be from e%ports. >ith their firm
77

resolution to reali(e their objecti$es! they will further consolidate their leadership
position in the consumer electronics! home appliances.
$GCs going pla.es in Indian market
It hasn=t been $ery long since this 4orean electronics and home appliance giant
came to India to sell colour T&s and other white goods. +o sooner did the
company entered India than it found this to be a large market for its IT products
as well. ,6=s e%periments may ha$e resulted in some initial snarls! but the
company is now successful in terms of both market penetration and presence.
ear-on-year ,6 is registering tremendous growth in its 2C components
business. *ow has this been possibleQ +ot that the company didn=t face any
competition when it came here! but ,6 has fought well to get where it has today.
"eF produ.ts Fill bring neF markets
,6=s new initiati$e is to pro$ide $alue-added products around the 2C to its
customers. The company launched an optical mouse some time back! which has
since achie$ed tremendous success.
,6 has also launched a P5y 2C= initiati$e. Though not as talked about as
)amsung=s high-profile and well-known P1uild your own 2C= scheme! the
company feels that the launch was ;uite successful and claims the response is
encouraging. 1- and C-class cities were key targets for the scheme. The
peripherals are being offered to the channels that cater to the assembled 2C
78

market. >hen it comes to the branded 2C market! ,6 has all the strengthsOcore
competencies to manufacture a 2C.
79

0R%S%"& SC%"RIO "D R%C%"& &R%"DS
"%# D%*%$O0M%"&S
B0$ Global i s part of 12, ,td.! whi ch i s the fl agshi p company of
the 12, 6roup! Indi aS s l argest congl omerate deal i ng i n Consumer
0l ectroni cs! *ome #ppl i ances! Tel ecom! )oft energy and 2ower
2roj ects. 12, has techni cal col l aborati ons wi th the worl dS s bestB
)anyo Aapan! Toshi ba Corporati on! <rance Tel ecom! 5edi a 3ne!
*arri s Communi cati ons! 3ctel ! +oki a etc.
12, i s a househol d brand i n consumer el ectroni cs and home
appl i ances i n the )##'C and 5i ddl e 0ast markets. 12, i s Indi aS s
l argest e%porter of el ectroni c goods ha$i ng won many awards
from the 6o$ernment of Indi a i n recogni ti on of 12,S s e%empl ary
e%port performance.
12, 6l obal assi sts worl dwi de $endors i n meeti ng the i mport
re;ui rements of the 6roup $i (. 'aw materi al s! 0l ectroni c
Components! 5echani cal and 0l ectromechani cal parts.
12, 6l obal assi sts the 6roup i n technol ogy scouti ng from around
the worl d to tap the growi ng Indi an market. 12,S s strategi c
sourci ng di $i si on i s conti nuousl y l ooki ng for new sources that are
competi ti $e i n ;ual i t y! cost! del i $ery and ser$i ce.
80

12, ,td i s currentl y l ooki ng at ac;ui ri ng a manufacturi ng faci l i t y i n
0urope to gai n a stronger foothol d i n the >estern markets.
#ccordi ng to the companyS s chai rman and managi ng di rector #j i t 6
+ambi ar! the company had i denti fi ed 0astern 0urope for the uni t to
make i t cost-competi ti $e for the >estern markets.
12, ,td i s l ooki ng at steppi ng up domesti c CT& sal es to C mi l l i on
sets by the year -::8-:@ coupl ed wi th a thrust on o$erseas markets.
12, i s i n tal ks wi th whi te goods manufacturers to undertake
operati on and marketi ng H3G5I arrangement for i ts di rect cool i ng
refri gerators.
The company! whi ch does not manufacture di rect cool i ng
refri gerators! currentl y sources i t from #l l wyn- &ol tas .
The company hopes to i ncrease i ts turno$er by /8 per cent wi th the
addi ti on of di rect cool i ng refri gerators to i ts product l i ne. 12,
commands /- percent market share i n the frost-free segment. The
company al so pl ans to e%pand i ts di stri buti on network The thrust i s
l i kel y to be i n the grade 1and C ci ti es
12,! whi ch made a consci ous effort to $enture i n the di rect cool i ng
segment! pl ans maj or non-manufacturi ng i n$estment i n category
e%pansi on. #round 8 per cent of turno$er has been earmarked by the
company to promote i ts refri gerator through fresh ad-campai gns!
81

The refri gerator segment i n Indi a i s growi ng at 78-7@ per cent
annual l y wi th di rect cool i ng o$ertaki ng the frost-free category.
>i th the entry of se$eral forei gn and domesti c pl ayers i n the frost-
free segment! 12,S s market share has fal l en substanti al l y o$er two-
three years.
The pri ce di fferenti al between di rect cool i ng and frost-free
refri gerator scan be bri dged by ei ther an upward re$i si on of di rect-
cool i ng refri gerators or a downward re$i si on of the frost free ones or
a combi nati on of both.
12, Tel ecom has l i sted i ts one of i ts three enti ti es-12, Inno$i si on!
12, Cel l ul ar *ol di ngs and 12, 1roadband +etworks on the
+#)D#M. >hi l e 12, Inno$i si on i s an i nternet ser$i ce pro$i der! 12,
1roadband +et works ai ms to be a nati onal l ong-di stance ser$i ces
pro$i der. The company has i n$ested 'sF.8bn for i ts con$ergence
busi ness. These i ncl ude i n$estments i n l ayi ng @::: 4ms of fi ber
opti c cabl e for setti ng up fi $e i nternati onal gateways co$eri ng /7
ci ti es i n the country. 12, i s al so e%pl ori ng the possi bi l i ty of offeri ng
broad band I)2 ser$i ces through di gi tal subscri ber l i ne! cabl e and
satel l i te.
Consumer el ectroni cs maj or! *ideo.on International has taken o$er
a /mn ton 'ussi an CT& gl ass manufacturi ng faci l i t y from a 6erman
82

bank for 's7.-bn Hi ncl udi ng l andi ng costI. >i th thi s! &i deocon= s
capaci t y woul d i ncrease from /mn tons to @mn tons. The company
pl ans to i ncrease i ts capaci t y to ?mn tons i n the ne%t three years!
whi ch wi l l re;ui re an i n$estment of 's/.8bn.
The company has taken a l ong-term $i ewpoi nt! as there i s a gl obal
shortage of the product. The shortage i s l i kel y to conti nue fol l owi ng
shi ft i n the demand from smal l and medi um T&s to l arge and fl at
T&s! whi ch re;ui re /:. more gl ass. The technol ogy for the $enture
has been pro$i ded by D)-based Technol ogi es! the l argest CT& gl ass
manufacturer i n +orth #meri ca and a whol l y owned subsi di ary of
Aapanese el ectroni cs maj or! +06.
&i deocon has i ntroduced a thi rd brand from the )emi -Tech 6l obal
stabl e -- the group whi ch owns brands such as #kai and )ansui -- i n
an effort to tap the economy segment of the col our tel e$i si ons
market.
83

4uture
Prospects in
this Industry
84

FUTUR$ !ROS!$CTS IN T%IS INDUSTR&
,uture In=estment
In the future scenari o! the consumer i tems l i ke C T.&.! refri gerator!
washi ng machi nes etc. ha$e become an area of necessi t y rather
than a l u%ury i tem. #nd hence! the demands of consumer i tems are
i ncreasi ng each passi ng day. #s we know! after 7??7 Indi an door
were fl ung open to forei gn operator. 5any came fl oodi ng i n and the
competi ti on became sharper. In such condi ti on! Indi an pl ayer l i ke
12,! &i deocon etc. faced a l ot of competi ti ons si nce 7??7. #
decade after gl obal i sati on! l i beral i sati on and mobi l i sati on! there has
been ampl e change of marketi ng pol i ci es of Indi an market. In fact!
Indi a has emerge an i mportant market of the worl d.
&he role of M"Cs ha=e been in.reasing.
<or i nstance B
&i deocon Internati onal ,i mi ted reported sal es of /F.:C bi l l i on Indi an
'upees HD)E@9: mi l l i onI for the fi scal year endi ng 5arch of -::8.
Thi s represents an i ncrease of ?.8. $ersus -::C! when the
companyS s sal es were -/ bi l l i on Indi an 'upees. )al es at &i deocon
Internati onal ,i mi ted ha$e i ncreased duri ng each of the pre$i ous fi $e
years Hand si nce -::/! sal es ha$e i ncreased a total of CF.I.
85

)al es of #i r Condi ti oners saw an i ncrease that was more than
doubl e the companyS s growth rateB sal es were up 77/.8. i n -::C!
from @-:.?@ mi l l i on Indi an 'upees to 7.// bi l l i on Indi an 'upees. +ot
al l segments of &i deocon Internati onal ,i mi ted e%peri enced an
i ncrease i n sal es i n -::CB sal es of Tel e$i si on )ets and &i deo
#ssembl i es fel l 7.-. to 7F.C- bi l l i on Indi an 'upees.
Dnder a new scheme - 6i ft i n Indi a - &i deocon i s maki ng a di rect
pi tch for the l arge popul ati on of non-resi dent Indi ans H+'IsI i n
$ari ous countri es. The scheme wi l l offer a -: per cent di scount to i ts
+'I cl i entel e on a range of products i ncl udi ng col our tel e$i si ons!
refri gerators! ai r-condi ti oners! audi os! ki tchen appl i ances and
washi ng machi nes. The schemeS s obj ecti $e i s to make i t possi bl e for
i ndi $i dual s i n $ari ous countri es to gi ft a &i deocon product to anyone
i n Indi a.
The scheme i s pegged at &i deoconS s Indi an retai l pri ce l i st and al so
i ncl udes the ser$i ce warrant y. The added benefi t i s that customers
can pay i n the l ocal currency of the country they resi de i n. &i deocon
woul d focus on countri es such as the D)! the D4! Dubai ! 3man!
Canada! 4uwai t and Dganda! whi ch ha$e a substanti al Indi an-ori gi n
popul ati on. 3ther condi ti ons i ncl ude the presence of an Indi an bank
i n the countri es where the scheme woul d be offered. &i deocon has
di stri butors i n the D) and the D4 and an offi ce i n 'ome.
86

)al es of 1O> T& sal es ha$e al so been hi t by i ncreasi ng competi ti on
from the second-hand CT& market. 2roducti on of 1O> sets i s
e%pected to be l ower at around 8./ mi l l i on uni ts compared to si %
mi l l i on i n -::C . *owe$er! the preci se $al ue fi gures are not
a$ai l abl e. +ew CT& sets come cheap! thanks to the e%change mel as
and easy fi nance offered by l eadi ng CT& manufacturers. 5oreo$er!
the pri ce di fferenti al between a -:-i nch 1O> set and a 7C-i nch CT&
has narrowed down! encouragi ng a shi ft to the l atter t ype. The
second-hand CT& market i s growi ng too! wi th sets a$ai l abl e for
throw-away pri ces. #ccordi ng to the manufacturers of 1O> sets! i t i s
di ffi cul t to peg a set bel ow 's C!:::! especi al l y when customers
demand more bands l i ke )-band and *yper-band Hwhi ch al l ow
recepti on of more channel sI. 1O> sets are bought mai nl y by cost-
consci ous consumers - for whom 's C!::: i s not cheap. 2hi l i ps!
Crown! 12,! &i deocon and )al ora are the l eadi ng pl ayers i n the 1O>
T& i ndustry. These manufacturers al so compl ai n of ri si ng i nput
costs. #ccordi ng to them! wi th gl obal gl ass shel l manufacturers l i ke
+06 of Aapan and )amsung of 4orea rai si ng the pri ces of thei r
products! component pri ces ha$e gone up sharpl y duri ng the year.
Duri ng the year! the pri ce of pi cture tube has gone up from 's C/:
to 's 8::. In fact! l eadi ng i ndustry pl ayers ha$e accused pi cture
tube manufacturers of formi ng a cartel at a ti me when the i ndustryS s
performance i s poor.
87

The washi ng machi ne market consi sts of two broad segments K
semi -automati c and ful l y automati c. The semi -automati cs! that
started sel l i ng and growi ng i n the l ate 7?9:s sti l l sel l the l argest!
accounti ng for around 9:. of the total market. Thi s has been due to
a $ari ety of factors! pri ce bei ng one of them. The semi -automati c
$ari eti es are i n the range of 'sC!::: to 's9!:::! the ful l y
automati cs are i n the range of 's7/!::: to 's79!::: and the new
generati on fu((y l ogi c machi nes come for abo$e 's79!:::.
5oreo$er! ful l y automati c machi nes re;ui re conti nuous water suppl y
Hfor each wash cycl e! the water i s changed --/ ti mesI. 5ost Indi an
ci ti es ha$e been faci ng a probl em of scarci ty of water.
Trends ha$e al so i ndi cated a shi ft from /-C kg capaci ty machi nes to
l arger ones. The 8 kg model woul d remai n the l argest sel l i ng
category. The semi -automati cs are more l i kel y to be purchased by
fi rst-ti me buyers whi l e ful l y automati cs and l arger si (ed machi nes
woul d be bought more by repl acement buyers.
The washi ng machi ne segment has been wi tnessi ng a l ot of acti $i t y
of l ate wi th many new entrants maki ng thei r foray i nto thi s segment.
Today! the consumer has a choi ce of 7F odd brands and o$er ?:
model s to choose from. Intense competi ti on has reduced pri ces
consi derabl y! the conse;uent s;uee(e on margi ns on top of
decl i ni ng $ol umes has added to the woes of the pl ayers i n thi s
segment.
88

5+Cs! after i ni ti al l y targeti ng the top end of the market Has onl y 8 kg
and abo$e capaci t y machi nes were al l owed to be i mportedI! ha$e
real i (ed that $ol umes sti l l l i e i n the semi -automati c segment. *ence!
they are busy reworki ng thei r strategi es. )amsung! ,6 ha$e model s
l i ned up to cater to these markets. Thi s shi ft woul d present enti rel y
new chal l enges for these pl ayers. Thi s segment i s e%tremel y pri ce
sensi ti $e and here l ocal pl ayers defi ni tel y ha$e an edge.
Brand 5 share
&i deocon -8
12, 7F
3ni da /
O&+%RS 88
*ideo.onK s market share! whi ch was more than 8:. a coupl e of
years ago! i s now hal f to -8.. Thi s i s one of the reasons why the
washi ng machi ne segment has not grown. The l eader has been
unabl e to l ead wel l . The company has not made any fresh
i n$estment and has not l aunched nor ad$erti sed any new model s.
B0$ i s al so not doi ng $ery wel l al though presentl y! there i s a l ot of
acti $i t y goi ng on i n the company. The company has merged i ts
refri gerator and washi ng machi ne busi ness i nto a si ngl e company --
12, )anyo Dti l i ti es. The new company wi l l concentrate on the whi te
goods and brown appl i ances market.
89

90

S'OT ANA(&SIS
S&R%"G&+S
)trong brands
The $i gorous growth of the satel l i te T& and the choi ces own
a$ai l abl e to the consumer i s a poi nt of strength for the i ndustry
Indi a has become an e%cel l ent base for consumer el ectroni cs
manufacture because the l i beral pol i ci es of the go$ernment ha$e
attracted l eadi ng mul ti nati onal s from Aapan! 4orea etc.! to come
and set up busi ness i n Indi a ei ther on 7::. e;ui t y basi s or j oi nt
$entures. 'ecentl y under the trade agreement of >T3! the Indi an
go$ernment has opened i ts ;uanti tati $e restri cti on of $ari ous
condi ti ons. #nd hence! &i deocon has to pl ay a maj or rol e and
grab the opportuni ty.
+ow the Indi an consumer has a greater choi ce for the forei gn
product and e$en the home products.
De$el oped di stri buti on i nfrastructure.
91

#%!"%SS
5arket penetrati on i s sti l l $ery l ow! whereas Chi na wi th
comparabl e l e$el s of i ncome boasts of -7 mi l l i on col our T& sets
al one today! we are hardl y at the l e$el of @ mi l l i on.
+arrow product range! l ow sustenance capabi l i t y
*i gh i mport content
smal l domesti c market hence l ong producti ons capaci ti es l yi ng
under uti l i (ed
,ow ;uanti ti es resul ti ng i n e%port pri ces bei ng non competi ti $e.
#ddi ti onal fi nance not a$ai l abl e for >C from Indi a= s 1anks.
O00OR&("I&I%S
The i ncreasi ng presence of mul ti nati onal s i n Indi a for
manufacturi ng be i t )amsung 6ol dstar! 2anasoni c! )ony!
pro$i des an opportuni ty for up gradi ng the ;ual i t y of manufacture
i n the country.
6rowi ng market! i ncreasi ng e%port opportuni ti es.
92

&+R%&S
,or the Industr/
In the new millennium! all the industries including the electronics or
manufacturing are $ulnerable due to the global recession of the wold
economy. # few years back! the economic tigers of #sia ha$e faced an
economic breakdown of the economy! and the international organisation such
as >T3! I5< etc. were compelled to channel certain their funds.
,or the .ompanies
#s per >T3 agreement! member countri es and parti cul arl y Indi a
whi ch has become a member i n the year 7??8! and hence the
country i s commi tted to reduce tari ffs on capi tal goods! components!
i ntermedi ari es and i ndustri al raw materi al s. Indi a has been
abol i shi ng the ;uanti tati $e restri cti ons step by step o$er the l ast
three years. In -::-! Indi a remo$ed restri cti ons on 9?C i tems. Thi s
l i beral i sati on wi l l affect the Indi an busi nesses! and parti cul arl y to
&i deocon Internati onal ,i mi ted! 12,. +ow the el ectroni c markets
are fl ooded wi th the $ari ous brands l i ke 12,! ,6! 3ni da! )amsung!
)ony etc.
93

CO"C$(SIO"
#bo$e the study I concl ude that Consumer Durabl e i ndustry i s one of
the most l ucrati $e and fast growi ng i ndustri es. The Indi an economy
wi tnessed a prol i ferati on of gl obal compani es i n the +ati onal )cene.
,i beral i (ati on of Indi an economy coupl ed wi th the medi a e%pl osi on
ushered i n a new era of consumeri sm' Increased purchasi ng power
and a fl ui d taste l ed to the creati on of buddi ng *ome #ppl i ances
market. The growth rates were as hi gh as --. i n the whi te goods
segment compared to a merel y --/. growth i n the 0uropean and
#meri can market.
*ome #ppl i ances i ndustry scenari o i n Indi a i s total l y di fferent from
what i t was one decade back. Consumer Industry )cenari o i n Indi a
i s total l y di fferent from what i t i s i n 0uropean Countri es. Demand i n
de$el oped countri es i s mai nl y consti tuted by repl acement demand
whi te goods market i n Indi a was domi nated by i ndi genous i ndustri al
houses l i ke &i deocon! 12,! 3+ID#! 4el $i nator! and many other! but
the entrance of mul ti nati onal s i n Indi an market because of openi ng
up of Indi an economy ga$e these compani es a bi g bl ow. 5+Cs that
are gai ni ng good market share are )amsung! ,6! 0l ectru%.
94

Indi an Consumer Durabl e i ndustry i s growi ng at an o$eral l rate of
7--7/ percent. If we consumer each product market i ndi $i dual l y! the
Col our Tel e$i si on market has shown a growth rate of -8..
'efri gerator market i s growi ng at a rate of 9-7:.. 'eason for hi gh
growth rate CT& market i s that now a days T& i s not used as a
source of entertai nment but al so source of knowl edge and
educati on. #l l these factors act as accel erator. If w take the case
ai r condi ti oners! today ai r condi ti oner i s not onl y refer to a cool i ng
machi ne but al so an ai r fresher. In proporti on to growi ng i nci dence
of worki ng coupl es! refri gerators are gai ni ng si gni fi cance! more and
more as an i nstrument to store and recycl e ready made $i ctual s.
Inspi te of many $al ue added )er$i ce that are bei ng offered by most
of the brand! the refri gerator market i s sti l l bi ti ng the dust.
>ashi ng machi ne market i s showi ng a growth rate of -:--8..
I<1 0l ectrol u%! )amsung! ,6 are the new entrant and gai ni ng sal es
$ery rapi dl y especi al l y 0l ectrol u%.
The Consumer Durabl e Industry i s one of the bedrocks of gl obal
i ndustri al de$el opment.
95

5ore speci fi cal l y! i n the Tel e$i si on 5anufacturi ng Industry! whi ch
accounts for a maj or chunk of al l consumer el ectroni cs i n Indi a!
Indi a account for a meager C. of the worl d CT& producti on and 7/.
of the 1G> T& producti on - wi th the market for 1G> T& ordi nari l y
wi tnessi ng a negati $e growthQ Thi s pal es i n compari son to other
#si an countri es.
#fter economi c l i beral i (ati on our country l owered entry barri ers and
brought gl obal compani es i nto the country= s marketpl ace! i t was
real i (ed that the core of the corporate worl d must change! to focus!
the fi rst ti me e$er i n Indi a! on the consumer. #nd to stop chasi ng
re$enues! profi ts and market shares! whi ch wi l l fl ow onl y from the
new consumer competence. <orget too! fore$er! the si l ent consumer
who! before of al ternati $es! uncompl ai ni ngl y bought whate$er
products were made a$ai l abl e. In today= s and tomorrow= s new
unforgi $i ng marketpl ace i t i s the choi ce - empowered consumer who
wi l l deci de the fate of the corporati ons.
There has been a sl ow down i n the D)= s economy! thi s has l ed down
phase of economy i n Indi an market al ong wi th other de$el opi ng
market of the worl d. #nd hence! the consumer based compani es
shoul d check thei r producti on. The psychol ogi cal war i s sti l l goi ng
on among the #meri cans.
96

#nd competi ti on! gl obal ;ual i ty and new economi c real i ti es are
conspi ri ng to l i mi t success onl y compani es that are focused
compl etel y on thei r consumer. <or! onl y these compani es and
conti nuousl y moni tor and meet changi ng consumer needsB
streaml i ne processes" cut costs and restructure for ;ui cker response
to the consumer= s demands. #l l of whi ch wi l l add up to an
unmatched competi ti $e edge! enabl i ng them to con;uer tomorrow= s
marketpl ace today. *owe$er ! the consumers and spendi ng wi sel y
not i ndi scri mi natel y. Changi ng personal ! soci al ! fami l i al and cul tural
i nfl uences - for i nstance! the ad$ent of satel l i te T&! i nternet and the
i nformati on age bri ngi ng wi th them ri ch! real - ti me i mages and data
about gl obal l i fest yl e- ha$e made the consumer an i ndi $i dual i sti c!
i conocl asti c and i rre$erent wi el der authori t y o$er the fate of
corporate= attempts to ful fi l thei r needs. >hi ch i s why i n thi s new
buyer= s market! the marketer has not choi ce but no make the
consumer hi s l odestar.
97

7eco""endations
98

R%COMM%"D&IO"S
<ol l owi ngs are the recommendati ons B
7. )hare of market i s deci ded among the l eadi ng compani es. <or
i nstance! 12, T& 2roduct= s market share i s around @. i nspi te
of superi or ;ual i t y products. *owe$er! i n thi s segment!
3+ID# i s the market l eader! ha$i ng market share of 7?.@
percent of total sal es. #nd the compani es l i ke 12, ha$e to
adopt new pol i ci es l i ke aggressi $e ad$erti si ng for the l ower
end 5arket and probabl y pro$i de 0%change )chemes such that
Consumers feel attracted.
-. The number of deal ers of compani es shoul d be i ncreased. 1y
thi s the Compani es woul d be abl e to ha$e a wi de network and
hence a better reach to the Indi an Consumers. Dnl ess! and
unti l they do not i ncrease thei r deal ers! i t becomes di ffi cul t to
sustai n i n thi s competi ti $e 5arket.
/. <eedback forms can be i ssued for knowi ng what percepti on the
consumers ha$e about brands. >hat they real l y want from the
manufacturers.
C. Compani es l i ke ,6 pro$i de e%cel l ent after sal e ser$i ces i n al l
i ts Consumer Durabl e segments. It has i mpl emented )i %-)i gma
99

for the ti me l ag to pro$i de effi ci ent! ti me bound and ;ual i ty
fi rst )er$i ce.
Indi an Compani es l i ke 3ni da! &i deocon! 12, ha$e to adopt
si mi l ar or better pol i ci es to match wi th the competenci es of
5+Cs
8. #l l the Compani es i n al l thei r respecti $e segment ha$e to
i ncrease the +etwork of thei r ser$i ce centre across the map.
100

)i/liography
101

BIB$IOGR0+)
Books
4ot l er! 2hi l i ps. Market i ng Management ! +ew 5i l l enni um 0di t i on! -::/
Magazi nes
1usi ness I ndi a! page 7-! Aanuary i ssue! -::8
I ndi a Today! page -7! <ebruary i ssue! -::8
1usi ness >orl d! page 8! 5arch i ssue! -::8
#ebsi tes
www. googl e.com!
www. i ndi ai nfol i ne.com !
www. yahoo.com !
www. webcrawl er.com !
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