karan makhjia-project report
TRANSCRIPT
MARKET RESEARCH & BUSINESS
DEVELOPMENT IN LATIN AMERICA, APAC
REGION FOR BLANK OPTICAL MEDIA
A Summer Project Proposal For
Post – Graduate Diploma in International Business
By
Karan Makhija
Under the guidance of
Mr. Ritesh Bhalla Dr. Suresh Ghai
Deputy Manager Director
Moser Baer, Delhi SIMSR
K J Somaiya Institute of Management Studies & Research
07th July, 2009
MARKET RESEARCH & BUSINESS
DEVELOPMENT IN LATIN AMERICA, APAC
REGION FOR BLANK OPTICAL MEDIA
By
Karan Makhija
K J Somaiya Institute of Management Studies & Research
July, 2009
2
MARKET RESEARCH & BUSINESS
DEVELOPMENT IN LATIN AMERICA, APAC
REGION FOR BLANK OPTICAL MEDIA
By
Karan Makhija
Under the guidance of
Mr. Ritesh Bhalla Dr. Suresh Ghai
Deputy Manager Director
Moser Baer, Delhi SIMSR
K J Somaiya Institute of Management Studies & Research
July, 2009
3
Certificate of Approval
We approve this Summer Project Report titled "Market Research & Business
Development in Latin America & APAC Region” as a certified study in
management carried out and presented in a manner satisfactory to warrant its
acceptance as a prerequisite for the award of Post-Graduate Diploma in Business
Administration/ Post Graduate Program in International Business for which it has
been submitted. It is understood that by this approval we do not necessarily endorse or
approve any statement made, opinion expressed or conclusion drawn therein but
approve the Summer Project Report only for the purpose it is submitted.
Summer Project Report Examination Committee for evaluation of Summer Project
Report
Name Signature
1. Faculty Examiner
2. PG Summer Project Co-coordinator
4
Certificate from Summer Project Guides
This is to certify that Mr. Karan Makhija, a student of the Post Graduate Program in
International Business, has worked under our guidance and supervision. This Summer
Project Report has the requisite standard and to the best of our knowledge no part of it
has been reproduced from any other summer project, monograph, report or book.
Faculty Guide:
Designation:
SIMSR
Date:
Organizational Guide 1: Mr. Ritesh Bhalla
Designation: Deputy Manager – Intl Business
Organization: MBI International Services Pvt Ltd.
Address: 43B, Okhla Industrial Estate, New Delhi - 110020
Date: 30th June, 2009
Organizational Guide 2: Mr. Amit Sharma
Designation: Deputy Manager – Intl Business
Organization: MBI International Services Pvt Ltd.
Address: 43B, Okhla Industrial Estate, New Delhi - 110020
Date: 30th June, 2009
5
ACKNOWLEDGEMENT
“For learning to take place with any kind of efficiency students must be motivated. To be motivated, they must become interested. And they become interested when
they are actively working on projects which they can relate to their values and goals in life”
I earnestly acknowledge the opportunity provided by Moser Baer. I would like to
acknowledge constant support and guidance of my project guide Mr. Ritesh
Bhalla (Deputy Manager – International Business) and Mr. Amit Sharma
(Deputy Manager - International Business), who has been instrumental in
successful completion of the project.
I also thank Dr. Suresh Ghai and Prof. C.P. Joshi, K.J. Somaiya Institute of
Management Studies & Research, for their guidance which facilitated my best
performance in the project.
Finally, I thank all those people whose silent presence gave me the right insights
to complete the project.
Karan Makhija
PGDM-IB, Roll No 28
K.J. Somaiya Institute of Management Studies & Research
Mumbai
6
Abstract
MARKET RESEARCH & BUSINESS
DEVELOPMENT IN LATIN AMERICA, APAC
REGION FOR BLANK OPTICAL MEDIA
ByKaran Makhija
In the blank optical media business, Moser Baer has made its mark in more than 80
countries. Company’s business model is divided into two different segments. One model
is Original Equipment Manufacturer (OEM), wherein company manufactures blank
media like CD, DVD for all major global OEM brands. Under this segment company
produce CD/DVD, their packaging and every other aesthetic aspect of it as per client
requirement. The other segment is Non-OEM, under which comparatively small
distributor, reseller, whole seller, importer works. This segment includes private label
business. Company also sells media under its own brand name.
In Non-OEM segment, Moser Baer has its presence in only three Latin American
countries a:
1. Argentina
2. Brazil
3. Venezuela
Now, Company is eyeing on other countries of Latin America region for its blank optical
media business expansion, which are as:
1. Bolivia
2. Chile
3. Colombia
4. Ecuador
5. Peru
6. Paraguay
7. Suriname
8. Uruguay
7
Moser Baer plans to expand into the following regions this
year :
1. China
2. Indonesia
3. Malaysia
4. Philippines
5. Singapore
6. Thailand
As per my project, I did market analysis of optical media
market for above mentioned countries and regions. In my
research I acquired information about all possible current
optical media market, companies, importers, distributors,
retailers who deal in optical media business. Information on
major brands operating in these regions were look upon. The
sources used to gather information are:
Indian Embassies at Latin America and APAC
countries
Foreign Embassies at India
Confederation of Indian Industry (CII)
Federation of Indian Chambers of Commerce and
Industry (FICCI)
Indian Trade Promotion Organisation (ITPO)
Online Business Directories
Search Engines as Google
For some above mentioned sources I contacted their offices
by visiting them or through mails and phone calls. On the
basis of information from all sources, I contacted prospective
companies to know about their current and future
requirement for Optical media. Then as per requirement of
the prospect, the offer was sent to them. All discussions and
offers send to prospects were done keeping in mind host
country’s legal and economic policy, trade laws and market
structure and scenario as country like Argentina, there is safe
guard measures on CD-R’s.
8
As per feedbacks from prospects, they are currently getting
cheap media products from Asian countries like China and
Taiwan. So, there is fierce price competition in these
countries.
INDEX
9
Acknowledgement………………………………………………………..…………… 6
Abstract……………………………………………………………………………………. .7
About Company ………….…………………………………….………………………..12
History…………………………………………………….…………………………………14
Major Milestones………………………………………………………………….…….16
Major Achievements…………………………………………………………………..18
Products & Services……………………………………………………………………20
Industry Profile………………………………………………………………………….26
CD R/RW Market Trends……………………………………………………...........35
Future Technologies………………………………………………………….……….38
Project Introduction……………………………………………………………….…..39
Results of discussion with Foreign Embassies at India…….……………41
Results of discussion with Indian Embassies……………………..………….42
Results of discussion with Trade Associations…………………...………….44
10
Facts about Argentina Optical Media Market………………………..............45
Facts about Brazil Optical Media Market……………………..........................48
Facts about Venezuela Optical Media Market…………………….................50
Findings……………………………………………………………………………………..52
Conclusion…...............................................................................................................55
Recommendations ……………………………………………………………………..56
Glossary……………………………………………………………………………………..58
References …………………………………………………….…………………………..59
LIST OF FIGURES
No. Details Page No
1. Graphical Representation of Market Share for Branded
CD-R (In millions)… …..28
2. Graphical Representation of Market Share for Branded
CD-RW (In millions)…..30
3. Graphical Representation of Market Share for Branded
DVD-R (In millions).…..32
4. Graphical Representation of Market Share for Branded
DVD-RW (In millions)..34
5. Graphical Global sales for the
formats………………………………..……………………….…37
11
6. Argentina OEM Market
Share……………………………………………………………………….
46
7. Argentina Private Label Market
Share…………………………………………………..………47
8. Brazil Local brand market
Share…………………………………………………………………..48
9. Venezuela Manufacturers Market
Share………………………………………………………..50
LIST OF TABLES
12
Table No Details
Page No
1. CD-R Global Sales
Data………………………………………………………27
2. Global CD-R Media Company Market
Shares………………………27
3. CD-RW Global Sales
Data…………………………………………………..29
4. Global CD-RW Media Company Market
Shares…………………...29
5. DVD-R Global Sales Data.
…………………………………………………..31
6. Global DVD-R Media Company Market
Shares……………………31
7. DVD-RW Global Sales
Data………………………………………………..33
8. Global DVD-RW Media Company Market
Shares…………………33
9. Remarks of consultation with Foreign Embassies at
India…..41
10. Remarks of consultation with Indian
Embassies………………...42
11. Remarks of consultation with Trade
Associations……………...44
12. Argentina DVDR Sales
Data……………………………………………….45
13. Argentina Private Label business Break-
Up…………………….....46
14. Argentina Local CD-R production
data………………………………47
13
15. Brazil local brands market
share……………………………….………48
16. Brazil major OEM brands market
share…………………………......48
17. Brazil Local Manufactures sales data…….
…………………………...49
18. Venezuela Manufacturers Market
Share…………………………….50
19. Venezuela market price for CD-R & DVD-
R……………………......51
20. Findings………………………………………………………………
…………..52
ABOUT COMPANY
Moser Baer, headquartered in New Delhi, is one of
India's leading technology companies. Established in
1983, the company successfully developed cutting edge
technologies to become the world's second largest
manufacturer of Optical Storage media like CDs and
DVDs. The company also emerged as the first to market
the next-generation of storage formats like Blu-ray Discs
and HD DVD. Recently, the company has transformed
itself from a single business into a multi-technology
organisation, diversifying into exciting areas of Solar
14
Energy, Home Entertainment and IT Peripherals &
Consumer Electronics.
Moser Baer has a presence in over 86 countries,
serviced through six marketing offices in India, the US,
Europe and Japan, and has strong tie-ups with all major
global technology players.
Moser Baer has the distinction of being preferred
supplier to all top global OEM brands. The company
stands committed to supplying highest quality fully
licensed media to its customers.
Moser Baer's products are manufactured at its three
state-of-the-art manufacturing facilities. It has over
6,000 full-time employees and multiple manufacturing
facilities in the suburbs of New Delhi.
Deepak Puri Managing director
Ratul Puri Executive Director
15
HISTORY
Moser Baer India was founded in New Delhi in 1983 as
a Time Recorder unit in technical collaboration with
Maruzen Corporation, Japan and Moser Baer
Sumiswald, Switzerland.
In 1988, Moser Baer India moved into the data storage
industry by commencing manufacturing of 5.25-inch
Floppy Diskettes. By 1993, it graduated to
manufacturing 3.5-inch Micro Floppy Diskettes (MFD).
In 1999, Moser Baer India set up a 150-million unit
capacity plant to manufacture Recordable Compact
Disks (CD-R’s) and Recordable Digital Versatile Disks
(DVD-R’s). The strategy for the optical media project
was identical to what had successfully been
implemented in the diskette business - creating a facility
that matched global standards in terms of size,
technology, quality, product flexibility and process
integration. The company is today the only large Indian
manufacturer of magnetic and optical media data
storage products, exporting approximately 85 percent of
its production.
Since inception, Moser Baer has always endeavored to
create its space in the international market. Aiding the
company in its efforts has been a carefully-planned and
sustainable business model - low costs, high margins,
16
high profits, reinvestment and capacity growth. Along
the way, deep relationships have been forged with
leading OEMs, with the result that today there are hardly
any global technology brands in the optical media
segment that Moser Baer is not associated with.
In 2006, the company announced its foray into the
Photovoltaic and Home Entertainment businesses. In
2007, the IT Peripherals and Consumer Electronics
division was formed.
MAJOR ACHIEVEMENTS
Second largest manufacturer in the world for blank
optical media
17
Entered the highly exciting and emerging global
technology space of photovoltaic in mid-2005
Foray into the fast growing Home Entertainment
Business in 2006.
In-house developed and patented technology has
been considered as one of the four standard media
to be included in the Blu-ray Disk Association
The first storage media company in the world to ship
HD DVDs using a special disc structure using
common materials.
Lowest-cost manufacturer of optical media in the
world
Highly R&D-focused company
OEM supplier to all the 12 leading storage media
brands in the world
MOSER BAER LOCATIONS
Corporate Headquarters: New Delhi, India
Indian Offices: Mumbai, Kolkata, Chennai and
Bangalore
Worldwide Offices: The Netherlands, USA (New
York and California), Japan, Middle-East
18
EMPLOYEE STRENGTH
Company has employee strength over 7,500
NUMBER OF PLANTS
Company has 4 plants located in India. Three plants at
Noida and one at Chennai
EXCHANGE LISTING
National Stock Exchange (NSE), the Stock Exchange,
Mumbai (BSE)
FINANCIALS SUMMARY
For the financial year ending March 31, 2008
Net Sales: Rs. 18,997.9 Million
Net Turnover: Rs. 208.7 Million
19
PRODUCTS & SERVICES
IT & Consumer Electronics:-
1. DVD Players
2. LCD’s
3. Media Players
4. Digital photo frames
5. Multimedia speakers
6. PC Peripherals
MOSER BAER
IT & CONSUMER ELEC. STORAGE MEDIA PHOTO-VOLTAICHOME
ENTERTAINMENT
20
Storage Media:-
1. DVD+R
2. DVD-R
3. DVD+RW
4. DVD-RW
5. DVD + R DL
6. Mini CD-R/DVDR
7. CD-R/RW
8. Blu-ray Disc
Photovoltaic:-
1. Crystalline Silicon Cells and Modules
2. High Concentrator and Thin Film Modules
Home Entertainment:-
1. Distribution of movies
2. Film production
3. Theatrical distribution
STORAGE MEDIA
Moser Baer India, the second largest manufacturers of
optical media in the world, is a technology company
21
focused on the preferred OEM for all 12 of the world's
optical media manufacturers and commands a 16%
development, manufacture and supply of optical media
across the globe. The company is a global market
share. With a strong R&D thrust, the company has been
able to lead the technology curve in the optical media
business. In the process, it is among the very few Indian
companies to have contributed to the establishment of
new global technology standards. As a result of this
single-minded drive and commitment, Moser Baer
became the first storage media company in the world to
ship HD DVDs.
In the Indian market, Moser Baer made its foray into the
burgeoning domestic optical storage market with the
launch of the `Moser Baer label in 2003. The company
has blazed a new trail by introducing technologically
innovative and truly world-class product in the Indian
market. Moser Baer's new range of Gold and Platinum
CD-R’s have been developed keeping native conditions
in mind in terms of enhanced durability and resistance
to both environmental and human-induced hazards. In a
market estimated at US$ 350 million in 2005-06 - Moser
Baer is already the leader with a share of over 40%.
The company manufactures the entire spectrum of
optical storage media products including Recordable
Compact Discs (CD-R), Rewritable Compact Discs (CD-
RW), Recordable Digital Versatile Discs (DVD-R),
Rewritable Digital Versatile Discs (DVD-RW) and blue
laser discs (HD-DVD and Blue-ray).
22
Moser Baer's products are manufactured at its three
state-of-the-art manufacturing facilities that adhere to
the most stringent process and quality standards. The
company employs over 7,500 people and has an annual
production capacity of over 3 billion units.
PHOTOVOLTAIC
Moser Baer Photovoltaic aims to distinguish itself as a
significant player in the global photovoltaic market by
leveraging its high-volume manufacturing expertise and
planned investments of nearly US$ 3.2 billion in
research, development and manufacturing of products
dedicated to generating solar power.
MBPV realizes that PV markets have different needs
and emerging technologies have to be developed today
to realize the world's future energy needs. It has already
announced investments in a mix of currently available
and emerging technologies as follows:
A first of its kind 80 MW, state-of-the-art, fully
automated in-line crystalline silicon cell
manufacturing facility - 40 MW already in
productions - this will be scaled up to 240 MW
A 40 MW module manufacturing facility with
expansion plans to scale it up to 200 MW
23
A 200 MW thin film module plant, capable of
producing the world's largest non-flexible thin film
modules, is under construction. Module shipments
are anticipated around mid 2008
A high concentrator photovoltaic (CPV) module
manufacturing facility and multi-million dollar
investments in a US-based company - Sol focus,
the developer of the CPV technology in partnership
with the world renowned Palo Alto Research Center
(PARC), California. The technology is based on
gallium arsenide cells, originally developed for
harsh extra-terrestrial solar applications and
environments
A significant equity stake in Solaria, a US-based
technology company that has developed a unique
form of low-concentration solar PV technology. It is
capable of producing power equivalent to two to
three times the power produced by conventional PV
modules, using the same amount of silicon material
A significant minority stake in Stion Corporation, a
nanostructures development company based in the
Silicon Valley, California, for producing extremely
low-cost solar power generating surfaces
Acquisition of 40% equity stake in Solarvaiue,
Proizvodnja d.d, a solar grade silicon production
facility in Slovenia, to provide access and
assurance of supply to low-cost solar grade silicon
An R&D centre dedicated for the improvement and
rapid commercialization of solar technology
products
24
In addition to the above, Moser Baer Photovoltaic has
invested in strategic partnerships involving the entire
value chain, particularly for strategic sources such as
silicon ingots and wafers, glass, etc. through short-term
and long-term supply agreements.
ENTERTAINMENT
Moser Baer Entertainment offers home video titles in
various Indian languages at unmatched prices and is
also engaged in media content creation.
The company is the first to offer home videos in every
popular language of India and it is today India's largest
Home Entertainment Company. It currently offers home
video titles in Hindi, English, Tamil, Telugu, Malayalam,
Kannada, Marathi, Gujarati, and Bengali and non-film
categories. Moser Baer Entertainment has acquired the
rights for close to 10,000 titles in all the popular
languages and has already released close to 3,000 of
them in the market.
Headquarters in Mumbai, the company is establishing a
strong presence across the country in all major metros
as well as in smaller towns through an active and well-
organized multi-tiered channel. This move will take
advantage of the established Moser Baer production
capability and a well developed distribution network.
The company has released video content in DVD and
Video CD formats using Moser Baer's proprietary and
patented technology that ensures the highest quality
standards and significantly reduces cost. The movie
25
titles come with world-class packaging. In short, Moser
Baer Entertainment is working towards providing
unprecedented value by offering high quality products at
a price that delights consumers.
IT PERIPHERALS & COMSUMER ELECTRONICS
Moser Baer has entered into IT Peripherals and
Consumer Electronics. In IT Peripherals the product
range comprises of USB drives, Memory Cards, DVD
writers, PC Peripherals, TFT Monitors, UPS and
External Hard Drives. In the Consumer Electronics
arena, the company has come up with a product range
with medium to hi-end positioning comprising of Ultra
Advanced LCD TVs, DVD Players, Portable DVD
Players, Digital Photo Frames, Media Players and
Multimedia Speakers.
INDUSTRY
PROFILE
CD-R/RW is a significant part of the recordable optical
storage industry, with overall dollar sales of $1.19 billion
26
in 2008. Media unit sales changed by -4%, but price
degradation continued with revenue changing -38%.
DVD recordable technology registered sales of $8.34
billion in calendar-year 2008. This figure is up from$7.68
million of revenue in 2007. Disc media sales grew by
12%, to 4.956 billion units. In the DVD disc media
business, revenues totaled $1.18 billion in 2008. This
report reviews five DVD disc formats: DVD-R, DVD-RW,
DVD+R, DVD+RW, and DVD-RAM. DVD-R was the
most significant recordable DVD format in 2008, with
65% of DVD recordable disc sales, followed by DVD+R,
31%; DVD+RW, 2%; DVD-RW, 2%; and DVD-RAM,
less than 1%.
Disc media continued to decline, with the market
representing 4997.240 billion units in 2008. CD-R disc
sales continue to exceed volume of DVD discs but are
not likely to hold this position much longer. Revenues
were influenced more by declining volume with average
unit pricing stabilizing,
DVD disc media is produced primarily in Asia, with
Japan and Taiwan maintaining a large share of this
business. Ritek, CMC, Optodisc, and Prodisc, all
based in Taiwan, are acting as subcontractors for a
number of international brands; Taiyo Yuden has
manufacturing in Japan; and MCC/Verbatim continues
to manufacture DVD discs, with production in
Singapore. Moser Baer maintains a significant
manufacturing presence for DVD recordable media in its
27
India facilities. There are smaller regional players that
have a minor influence on this market.
Entertainment levies in Europe had a major influence on
geographic sales of disc media. High levy countries
such as France, Italy, Sweden, Denmark, Austria,
Spain, and Hungary saw their official markets decline
because of this trend. Countries with low levies like
Germany, the United Kingdom, Slovakia, Monaco, San
Marino, Andorra, and Luxembourg benefited from this
trend, with traders shipping discs to high-levy markets.
CD-R:-
Sales Data 2007 2008 2009
GLOBAL SALES (MM UNITS) 6742.412 6041.387 4997.24
% CHANGE IN SALES N.A. -10.90% -17.28%
(Source: SCCG Year
End Report – 2009)
Table 1 – Global Sales Data
GLOBAL CD R MEDIA COMPANY MARKET SHARES
BRAND
2007 2008 2009
Market
Share
Units in
million
Market
Share
Units in
million
Market
Share
Units in
million
IMATION 9.70% 654.01396 8.60% 519.5593 7.40% 369.7958
MEMOREX 11% 741.66532 11.40% 688.7181 10.80% 539.7019
TDK 10.70% 721.43808
4
11.70% 706.8423 9.70% 484.7323
SONY 11% 741.66532 11.30% 682.6767 12.50% 624.655
28
MCC/
VERBATIM
15.50% 1045.0738
6
15.60% 942.4564 16.80% 839.5363
MAXELL 9.80% 660.75637
6
11.10% 670.594 11.10% 554.6936
HP 2.50% 168.5603 2.20% 132.9105 3% 149.9172
PHILIPS 3% 202.27236 3.00% 181.2416 2.50% 124.931
RITEK 2.70% 182.04512
4
2.00% 120.8277 2.70% 134.9255
TAIYO YUDEN 2.70% 182.04512
4
2.50% 151.0347 2.70% 134.9255
OTHERS 10.80% 728.18049
6
13.00% 785.3803 9.90% 494.7268
(Source: SCCG Year
End Report – 2009)
Table 2 – Tabular format for Branded CD-R
(Source: SCCG Year
End Report – 2009)
0
200
400
600
800
1000
1200
IMATION 654.01396 519.5593 369.7958
MEMOREX 741.66532 688.7181 539.7019
TDK 721.438084 706.8423 484.7323
SONY 741.66532 682.6767 624.655
MCC/VERBATIM 1045.07386 942.4564 839.5363
MAXELL 660.756376 670.594 554.6936
2007 2008 2009
29
Fig 1 – Graphical Representation of Market Share for
Branded CD-R (In millions)
Observations:
The overall market for the CD-R kept on decreasing
Verbatim had the highest and increasing share
The shares for Verbatim increased due to decrease in
the overall sales
30
CD RW:-
Sales Data 2007 2008 2009
GLOBAL SLAES(MM UNITS) 237.54 177.834 130.705
% CHANGE IN SALES N.A. -25.13% -26.50%
(Source: SCCG Year
End Report – 2009)
Table 3 – Global Sales Data
GLOBAL CD-RW MEDIA COMPANY MARKET
SHARES
BRAND
2007 2008 2009
Market
Share
Units in
million
Market
Share
Units in
million
Market
Share
Units in
million
TDK 13.10% 31.11774 12.20% 21.69575 10.60% 13.85473
IMATION 17.80% 42.28212 11.60% 20.62874 13% 16.99165
MEMOREX 15.90% 37.76886 19.30% 34.32196 15.50% 20.25928
MAXELL 12.30% 29.21742 12.40% 22.05142 16.10% 21.04351
SONY 10.40% 24.70416 11.80% 20.98441 12.70% 16.59954
PHILIPS 2.90% 6.88866 3% 5.33502 1.80% 2.35269
MCC/
VERBATIM
19.20% 45.60768 20.50% 36.45597 22.10% 28.88581
FUJI 0.80% 1.90032 2.70% 4.801518 1.50% 1.960575
OTHERS 5% 11.877 6.40% 11.38138 6.80% 8.88794
(Source: SCCG Year
End Report – 2009)
31
Table 4 - Tabular format for Branded CD-RW
(Source: SCCG Year
End Report – 2009)
Fig 2 - Graphical Representation of Market Share for
Branded CD-RW (In Millions)
Observations:
The overall market for CD-RW declined
MCC/Verbatim had the highest market share
Verbatim increased its share in the declining
market
0
5
10
15
20
25
30
35
40
45
50
TDK 31.11774 21.69575 13.85473
IMATION 42.28212 20.62874 16.99165
MEMOREX 37.76886 34.32196 20.25928
MAXELL 29.21742 22.05142 21.04351
SONY 24.70416 20.98441 16.59954
PHILIPS 6.88866 5.33502 2.35269
MCC/VERBATIM 45.60768 36.45597 28.88581
2007 2008 2009
32
The shares increased due to the decline in the
overall sales world wide
33
DVD R:-
Sales Data 2007 2008 2009
GLOBAL SALES(MM UNITS) 4035.461 4433.613 4729.385
% CHANGE IN SLAES N.A 9.80% 6.67%
(Source: SCCG Year
End Report – 2009)
Table 5 – Global Sales Data
GLOBAL DVD R SHARES
BRAND
2007 2008 2009
Market
Share
Units in
million
Market
Share
Market
Share
Units in
million
IMATION 5.80% 234.05673
8
5.50% 243.8487 4.90% 231.7399
MEMOREX 9% 363.19149 10.10% 447.7949 9.80% 463.4797
TDK 13.30% 536.71631
3
13.80% 611.8386 13.80% 652.6551
MAXELL 8.20% 330.90780
2
9.40% 416.7596 8.60% 406.7271
MCC/VERBATIM 21.70% 875.69503
7
23.80% 1055.2 22.80% 1078.3
SONY 10.60% 427.75886
6
11.20% 496.5647 12.10% 572.2556
PHILIPS 3.20% 129.13475
2
3.20% 141.8756 2% 94.5877
34
HP 2.90% 117.02836
9
2% 88.67226 2.60% 122.964
RITEK 2.50% 100.88652
5
2.10% 93.10587 1.90% 89.85832
FUJI 3.60% 145.27659
6
2.50% 110.8403 2% 94.5877
OTHERS 19.20% 774.80851
2
16.40% 727.1125 19.40% 917.5007
(Source: SCCG Year
End Report – 2009)
Table 6 - Tabular format for Branded DVD-R
(Source: SCCG Year
End Report – 2009)
Fig 3 - Graphical Representation of Market Share for
Branded DVD – R (In Millions)
0
200
400
600
800
1000
1200
IMATION 234.056738 243.8487 231.7399
MEMOREX 363.19149 447.7949 463.4797
TDK 536.716313 611.8386 652.6551
MAXELL 330.907802 416.7596 406.7271
MCC/VERBATIM 875.695037 1055.2 1078.3
SONY 427.758866 496.5647 572.2556
PHILIPS 129.134752 141.8756 94.5877
2007 2008 2009
35
Observations:
The global market for DVD R increased with
Verbatim being the market leader with an
approximate share of 22%
DVD RW:-
Sales Data 2007 2008 2009
GLOBAL SALES(MM UNITS) 295.755 304.397 226.473
%CHANGE IN SALES N.A 2.90% -25.50%
(Source: SCCG Year
End Report – 2009s)
Table 7 – Global Sales Data
GLOBAL DVD RW SHARES
BRAND 2007 2008 2009
Market Units in Market Units in Market Units in
36
Share million Share million Share million
IMATION 7.30% 21.590115 6.40% 19.48141 6.30% 14.2678
TDK 16.10% 47.616555 13.50% 41.0936 12.90% 29.21502
MEMOREX 4.90% 14.491995 8.40% 25.56935 7.80% 17.66489
MAXELL 20% 59.151 19.90% 60.575 21.40% 48.46522
MCC/VERBATIM 15.60% 46.13778 16.10% 49.00792 17.70% 40.08572
SONY 13.60% 40.22268 14.90% 45.35515 15.20% 34.4239
PHILIPS 6.80% 20.11134 5.90% 17.95942 5.50% 12.45602
FUJI 2.30% 6.802365 4.70% 14.30666 3.30% 7.473609
MATSUSHITA 6.30% 18.632565 4.80% 14.61106 4.80% 10.8707
OTHERS 7% 20.70285 5.40% 16.43744 4.90% 11.09718
(Source: SCCG Year
End Report – 2009)
Table 8 - Tabular format for Branded DVD-RW
(Source: SCCG Year
End Report – 2009)
0
10
20
30
40
50
60
70
IMATION 21.590115 19.48141 14.2678
TDK 47.616555 41.0936 29.21502
MEMOREX 14.491995 25.56935 17.66489
MAXELL 59.151 60.575 48.46522
MCC/VERBATIM 46.13778 49.00792 40.08572
SONY 40.22268 45.35515 34.4239
PHILIPS 20.11134 17.95942 12.45602
2007 2008 2009
37
Fig 4 - Graphical Representation of Market Share for
Branded DVD – RW (In millions)
CD R/RW MARKET TRENDS
It is now estimated that there is 28% more supply than
demand for CD-R discs. This appears to be a relatively
good supply/demand balance; the market has seen
pricing stabilize as it has approached cost. For
manufacturers paying royalties to Philips and other
companies, profits are limited at best. It is expected that
manufacturers will decrease CD-R capacity in 2009,
hoping that pricing will improve to allow profitability.
Taiwan dominates manufacturing for CD-R discs, now
representing 62% of global capacity. India is an
important participant, with Moser Baer maintaining an
additional 19%.
38
CD-recordable technology revenue changed by -13%, to
$257 million in Q4. Media Revenues showed a
significant decrease as writer and media sales declined.
Quarterly CD Writer unit sales changed by -50%, with
declines in all channels. Writer revenue growth changed
by -32%; higher unit pricing in combo drives and a
growing share of this product category in the writer
segment compensated for some of the declines in the
half-high format, but the shift to DVD writers was driving
this trend. Media dominated sales, representing 82% of
revenue.
Global CD recordable disc sales changed by -4% from
1252.846 million units to 1205.198 million units on a
quarter-to-quarter basis. This decline was primarily due
to the gradual market shift towards DVD media and
alternate storage being used for applications like music.
CD-R discs represented 1179.320 million units of this
volume and prices showed a modest decline during the
quarter. CD-RW media sales continued to be limited,
representing 2.15% of total unit sales. Disc
manufacturers are retiring CD-R capacity and in some
cases converting production lines to DVD recordable
capacity. Several companies are further reducing
manufacturing capacity by stopping less-productive
lines. There is adequate CD-R capacity to support
industry needs for the future.
CD-R/RW:
39
CD-R/RW represented the significant part of the
recordable media, although the overall sales for the CD-
R/ RW decreased. Disc media sales continued to
decline with the market representing 6742.412 million
units in 2007, 6041.387 million units in 2007 and
4997.240 million units in the year 2008. Considering the
change in the previous three years i.e. from 2006-2008,
the supply demand gap has increased from 2% in 2006
to 28% in 2008. This is because the markets mature
and application for copying CD became saturated.
Some of this decline is influenced by the acceptance of
the high storage capacity products like DVD in the
market. In the addition alternate technologies such as
flash (MP3 players) and online (music and video
distribution, photo storage) also influenced the trend.
Disc manufacturers are retiring CD-R
capacity and in some cases converting production lines
to DVD recordable capacity. Several companies are
further reducing manufacturing capacity by stopping
less-productive lines. There is adequate CD-R capacity
to support industry needs for the future.
CD-RW does not form the significant part of the CD
recordable media. The sales for CD-RW decreased, it
decreased by 25.13% (177.834) in 2007 from 237.54
mn in 2006. In 2008 it came down to 130.705 mn
(26.50%).
DVD-R/RW:
40
The sales for DVD-R increased in the year 2007 by
9.80% from the previous year and 6.67% in the year
2008. The sales for DVD R which comes in two formats
(DVD-R/+R) increased due to high compatibility of either
versions with DVD players, the prime playback medium
for this product. DVD R media consumption was initially
driven by the transfer of camcorder tapes. There is a
huge installed base of camcorder tapes. This might
suggest an opportunity to quickly convert this quantity to
DVD. In actual practice, the conversion will be fairly
gradual, and will relate to a user’s need to convert from
magnetic media, which is perceived as deteriorating, to
DVD. Some of this activity will be influenced by media
cost, which initially will be quite high.
DVD RW which also comes in two formats
(DVD-RW/+RW) has lower levels of compatibility with
the DVD players. Global sales for DVD RW increased
by 2.90% in 2008 but decreased by 25.50% in 2009.
Global sales for the formats are as shown below:
0
2000
4000
6000
8000
CD-R 6742.412 6041.387 4997.24
CD-RW 237.54 177.834 130.705
DVD-R 4035.461 4433.613 4729.385
DVD-RW 295.755 304.397 226.473
2007 2008 2009
41
(Source: SCCG Year End Report – 2009)
Fig 5 - Graphical Global sales for the formats
FUTURE TECHNOLOGIES
Blu-ray was announced in late 2002. This technology is
supported by a group of nine companies (the “Blu-ray
Founders”) working on standards. With capacity of 25
gigabytes (50 GB on a double-sided disc), the main
application appears to be supporting high-definition
broadcast copying. Considering the development cycle
and limited need for storing high definition broadcast
content (which is only a factor in Japan), this market
might mature some years in the future.
In September 2002, Sony announced a “DVR-Blue”
prototype consumer recorder with capacities of 23.3 GB,
25 GB, and 27 GB. Sony did not specify when these
devices would be available on a commercial basis, but
small volumes started to ship in Japan in 2007.
The recorder has capabilities such as
receiving/recording programs of digital satellite
42
broadcasting and recording the current ground-based
TV broadcasting.
Toshiba introduced the HD DVD (previously known as
AOD), which also featured blue laser technology. This
technology was capable of storing 15 GB (30 GB on a
double-sided disc). The HD DVD format was
discontinued in early 2008.
The Blu-ray drive manufacturers have come out with a
ROM version and are actively working with movie
studios and software vendors to gain acceptance in
these markets. (SCCG published a report titled Blu-ray
and HD DVD Disc Technologies: Pursuit of a New
Standard, which provides more detail on this market.)
PROJECT INTRODUCTION
The project is based on analysis of current optical media
market and prospecting of companies in Latin America
and APAC region in the sphere of optical media
business.
OBJECTIVE:
43
Market analysis and assessment about blank
optical media business in Latin America and
APAC region
Prospecting companies which are importers or
reseller or duplicators of optical media in Latin
America and APAC region
Preparing marketing plan for prospective and
interested companies as per country legal and
economic framework
RESEARCH METHODOLOGY:
The research methodology used is primary and
secondary research. All the information and data
represented in the project have been collected from
various sources as:
Questionnaire and depth- Interviews
Indian Embassies at Latin America and APAC
countries
Foreign Embassies at India
Confederation of Indian Industry (CII)
Federation of Indian Chambers of Commerce
and Industry (FICCI)
Indian Trade Promotion Organisation (ITPO)
Online Business Directories such as Alibaba,
Tradekey etc.
Online search engine
44
The market taken for the study is the Latin America and
APAC region.
Under Latin America following countries have been
covered:
1. Argentina
2. Bolivia
3. Brazil
4. Chile
5. Colombia
6. Ecuador
7. Peru
8. Paraguay
9. Suriname
10. Uruguay
11. Venezuela
Under APAC region following countries have been
covered:
1. China
2. Thailand
3. Malaysia
4. Singapore
5. Indonesia
6. Philippines
This research project has helped the company in
establishing the market size, existing players,
opportunities and prospects in order to expand business
in these markets/segments and what all is needed to
have an initial breakthrough.
It also gives a complete understanding on the
movement of goods and competitor performance in
these specific regions based on discussions with
prospective clients.
45
Also it has helped in analyzing performance of different
brands like Imation/Verbatim/TDK vis-à-vis smaller
brands like Princo, Multilaser, Elgin etc in specific
regions.
Results of discussion with Foreign Embassies
at India:
S. No
Embassy Of
Person Remarks
1 URUGUAY
- No information received from embassy
2 PERU - Information received from embassy
3 ECUADOR
Ms. Leticia No information received from embassy
4 VENEZUELA
- No information received from embassy
5 ARGENTINA
- No information received from embassy
6 BRAZIL - Information received from embassy
7 SURINAME
Ms. Vyanti Mala Ram Ratan Srivastav
No information received from embassy
8 KENYA - No information received from embassy
46
Table 9 – Remarks of consultation with Foreign
Embassies at India
47
Results of discussion with Indian Embassies at
Latin America & APAC region:
S. NO EMBASSY AT PERSON CALL REMARKS1 Ecuador - Not able to contact embassy
2 Argentina Mr. Sanjeev Kumar Babu
No information received from embassy
3 Brazil Ms. Leticia Information received from Embassy about certain prospects and other information sources
4 Chile - Embassy people have contacted our agent based in Chile
5 Indonesia Ms. Pratibha
Information received from embassy
6 Paraguay - Not able to contact embassy
7 Peru - Information received from embassy
8 Singapore - Information received from Embassy about certain prospects and other information sources
9 Thailand Mr. Purshottam
Information received from Embassy about certain prospects and other information sources
10 Venezuela - Not able to contact embassy
11 Colombia - No information received from embassy
48
12 Kuala Lumpur - Information received from Embassy about certain prospects and other information sources
13 China Mr. Amit ( 65321856)
Information received from Embassy about certain prospects and other information sources
14 BoliviaHonorary Consulate General Of India, La Paz
- Not able to contact embassy
15 Suriname - Not able to contact embassy
Table 10 – Remarks of consultation with Indian
Embassies
49
Results of discussion with Trade Associations:
S. No
Association
Remarks
1 ITPO Visited ITPO. No information received.
2 NASSCOM
No information received from NASSCOM
3 CII Visited CII. No information received.
4 FICCI No information received from FICCI
Table 11 – Remarks of consultation with Trade
Associations
50
Facts about Argentina Optical Media Market
1. Market Size: 12mn DVD-R/ month and 13 mn CD-
R/month
2. OEM Brands represent 70% & Local Private Labels
have 30% market share
3. There are safeguard measures against India on CD-
R
4. Major OEM Brands with DVD-R Market share are as
follows:
Sales (1st Jul' 07 - 31st Jul' 08)
BrandsDVDRs
(mn pcs)Mkt Share Distributors
Verbatim 52.774 52% Econ Office - GTC, Imtermaco, Elit, Stenfar, Etertin, Districomp
Imation 14.641 14% Util- of, Stylus, Casa Sermiento
Memorex 15.68 15% Audioptica, Util-Of, Stylus, Aircomputers
TDK 2.348 2% Cura Y, Audioptica
Sony 7.875 8% Intcomex, Visuar SRL, Gasei SA. Util - Of, American Importadora
Pleomax 1.119 1% GTC Ribbon
BenQ 0.596 1% Simon and Arrington, Air Computers
Melody 0.378 0% Anadolu
Philips 6.291 6% Diatricomp, Simon and Arrington
Total 101.702 100%
Table 12 – Argentina OEM - DVDR Sales Data
51
OEM Mkt Share
Verbatim, 52%
Imation, 14%
Memorex, 15%
TDK, 2%
Sony, 8%
Pleomax, 1%
Philips, 6%
BenQ, 1%
Melody, 0%
Fig6 – Argentina OEM Market Share
4. Major Private Labels with DVD-R Market share are
as follows:
Sales (1st Jul' 07 - 31st Jul' 08)
BrandsDVDRs
(mn pcs)Mkt
ShareDistributors
Akira 2.865 14% Impact Argentina
Teltron 6.414 32% Teltron SA
Cromax 2.956 15% Elit
Conception 7.032 35% Super CD Virgen
Storax 1.086 5% Districomp
Total 20.353 100%
Table 13 – Argentina Non-OEM Private Label business
Break-Up
52
Pvt Label - Mkt Share
Akira , 14%
Teltron , 32%
Cromax , 15%
Conception, 35%
Storax, 5%
Fig 7 – Argentina Private Label Market Share
5. Local Production
CDR Capa (mn pcs/a)
Teltron 50
Laser Disc 36
Table 14 – Argentina Local CD-R production data
6. Market Segments
Duplicators
(Piracy) is 70%
Retail
Customers is
30%
7. Distribution
Small Retailers:
90%
Retail Chains:
2%
IT Shops: 5%
Office
Stationery
Shops: 3%
Open Street -
Sell Pirated
Movies & music
53
8. Political Situation and Economy of Argentina is
not stable. Companies want to wait for Political
stabilization. Also they wait for Exchange Rate
stabilization. Inflation is around 24% per year.
Government is regulating all the industries and
trying to minimize imports. At this point of time
companies are hesitant to start a new business.
Facts about Brazil Optical Media Market
1. Total Brazilian Optical Media Market size is 100-
120mn pieces/month with CD-R share of 40% and
DVD-R share of 60%
2. Piracy is the biggest problem for Government and
brands
3. Local Brands represent 60-70% of the total market
and OEMs Brands represent 30-40%.
4. Major Local Brands with market share are as
follows:
Videolar 25-30%Elgin 7%Multilaser 8%Printlife 8%Maxprint 7%Others (S-Mac, CIS etc.) 5-10%
Table 15 – Brazil local brands market share
54
Mkt Share - Local Brands
Videolar , 30%
Elgin, 7%Multilaser, 8%
Printlife, 8%
Maxprint, 7%
Others, 10%
Fig 8 – Brazil Local brand market share
5. Major OEM Brands with Market Share are as follows:
Sony 10%Maxell 8%Imation 8%Others (TDK, Samsung, Ridata,Kodak, LG, etc.) 4%
Table 16 – Brazil major OEM brands market share
Sony, Imation and Maxell are doing business with the
help of their Distributors. Sony has become very serious
for Brazilian market by giving volume targets to their
distributors and reducing the price difference between
Sony branded media and other brands.
6. Local Manufacturers
Capa (mn pcs/m)
Videolar 38
Infosmart 6
Novodisc 1.5
Cooperdisc 1
Table 17 – Brazil Local Manufactures sales data
55
Videolar is the biggest manufacturer in Brazil. They are
also producing CD-R for SONY in Brazil. Their DVD-R
quality has not been approved by SONY.
7. Market Segments:
Duplication: 60% Sales through
Distributors/Wholesalers/Retailers Retail/Corporate
Customers: 40% Sales through small Retailers and
Big Retail Chains
Facts about Venezuela Optical Media Market
1. Total Media Market size is expected to be 50-70mn
pieces/month
2. CD-R market share is around 30% and DVDD-R
share is around 70%
3. Biggest market segment (around 70-80%) is Piracy.
Government has not taken any strict measures to curb
this problem. Pirated content sells on streets.
56
4. Manufacturer's/OEM Brands and Local Brands are
present in the ratio of 50:50 approx. There are around
40 Local Brands e.g. BBB, Banana, Huskee, Global
Data etc...
5. Within Manufacturer's and OEM Brands, Market
Share is as follows:
Princo 40%Gigastorage 20%Ridata 10%Smartbuy 10%Others 20%
Table 18 – Venezuela Manufacturers Market Share
Mkt Share - OEM Brands
Princo40%
Gigastorage
20%
Ridata10%
Smartbuy10%
Others20%
Fig 9 – Venezuela Manufacturers Market Share
7. Local Manufacturers
Global Data - Capacity around 6mn
pieces/month
Cendis - (Owned by Government)
57
8. Market Segments
Duplication: 70-80% Sales through
Distributors/Wholesalers/Retailers)
Retail/Corporate Customers: 20-30% Sales
through small Retailers and Big Retail Chains
9. 10. Sales Channels: The traditional sales channel
of Distributors --> Resellers --> End Customer is
also there along with direct dealing between
manufacturer and retailer
10. Important Cities for Media Business are Caracas,
Mara cay, Valencia, Maraca Ibo, Barquisimento.
40% of the media business happens in Caracas - the
Capital of Venezuela
11. Import Duty on media is 29% on CIF Value
12. Free Trade Zones: Margarita Island, Puerto Fijo
Findings:
58
As per primary level prospecting, 32 companies are sorted
out which are interested in dealing with Moser Baer for
optical media business. These companies are listed below:
Company
ContactCountry
Source
Remarks
Cabot Col Sa
Ramiro Velasquez Norena
Colombia
Embassy
Introductory mail sent
Didactica-Recursos Educativos Ltda
Jaramillo Isabel Aguirrezabal De
Colombia
Embassy
Introductory mail sent
Favaltec Ltda
Valderrama Morales Fabio
Colombia
Embassy
Introductory mail sent
Ledakon S A
Akerman Lederman Larry
Colombia
Embassy
Introductory mail sent
Memoria Digital S A
Jaime Hernandez
Colombia
Embassy
Introductory mail sent
Sepulveda Ursula Piedad Cecilia Y/O Sumimagen
Ursula Piedad Cecilia Sepulveda
Colombia
Embassy
Introductory mail sent
Aires Sa Aerovias De Integracion Regional S A
Erika Sarante Bahamon
Colombia
Embassy
Introductory mail sent
Asinal Ltda
Acevedo Diaz Belisario
Colombia
Embassy
Introductory mail sent
Avon Colombia Ltda
Sigilfredo Torres Velez
Colombia
Embassy
Introductory mail faxed on 005743567947
Brigthstar Colombia Ltda
Alvaro Rojas Bocherith
Colombia
Embassy
Introductory mail sent
59
Franchise System De Col Ltda Y Cia Sca Fsc Ltda
Ricardo Sanchez Gil
Colombia
Embassy
Introductory mail sent
Gonzalez Garcia S A-890925810
Jorge Ivan Gonzalez
Colombia
Embassy
Introductory mail sent
Insitel Ltda Ingenieria De Sistemas Telematicos Ltda
Julian Alberto Clavijo Gonzalez
Colombia
Embassy
Introductory mail sent
Invs Ajoveco S A-860010268
Palacios Verswyvel Juan Manuel
Colombia
Embassy
Introductory mail sent
Labs Baxter S A-890300292
Victor Pedroza / Eduardo Jose Yalde
Colombia
Embassy
Introductory mail sent
Lanzetta Rengifo Y Cia Ltda
Rengifo Naranjo Maria Victoria
Colombia
Embassy
Introductory mail sent
Nexsys De Colombia S A
Gilbert Isaac Chalem Choueka
Colombia
Embassy
Introductory mail sent
Suministros Indls De Col Ltda Sumincol
Parsons Garcia Jairo Samuel
Colombia
Embassy
Introductory mail sent
Impresistem
- Colombia
Alibaba
Introductory mail sent
Vs Data Carlos Santos
Brazil Authorized Dealer
Given contact details to Mr. Ritesh
Redosul Brindes
Mr. Murilo Salustiano (Manager)
Brazil Alibaba
Given contact details to Mr. Ritesh
Rama Global Trading
Mr. Joelson Souza
Brazil Alibaba
Given contact details to Mr. Ritesh
60
Premium Materiais Para Escritório Ltda.
Mr. Mauro Brazil Embassy
Given contact details to Mr. Ritesh
Tech Data Peru
Gustavo Guillen
Peru Alibaba
Concerned person not available
Hyh Servicios Integrales S.R.L
Mr. Hector Huertas (General Manager)
Peru Alibaba
Introductory mail sent
Sml Imports Solutions
Mr. Rafael Salinas
Peru Alibaba
Introductory mail sent
Grupo Venesys
Jonathan De Martinez
Venezuela
Authorized Dealer
Got country manager number: 0058 42433202010 but not able to contact on this number
Hj Ltda. - Chile Authorized Dealer
Introductory mail sent
W Y F Mr. Andres Poblete
Chile Alibaba
Given contact details to Mr. Ritesh
Pendrives.Cl
Mr. Jorge Frugone
Chile Alibaba
Given contact details to Mr. Ritesh
Libreria Brasil
Mr. Jorge Kasaneva
Chile Trade Key
Not interested
Table 20 - Findings
61
Conclusion:
• In and around Latin America there is less number
of manufacturing units. To name few: Teltron and
Laser Disc at Argentina; Videolar, Infosmart,
Novodisc at Brazil and Cendis at Venezuela
• OEM brands have their warehouses and
distribution channels existent in these countries.
To name few, Verbatim has its warehouse in
many countries of Latin America, HP has its
warehouse in Brazil
62
• Other than international brands, there are some
private labels such as Multi Laser, Elgin, Maxlife
etc. in Brazil ; Akira, Teltron , Cromax etc. in
Argentina also existent in the market and capture
a substantial market share
• Many Latin American countries such as
Argentina. Chile, Uruguay etc. is slow to adapt to
the latest in optical media, and not a highly
quality conscious market. Where as Brazilian
market has demand of all sort of media
• APAC market is mid level market, with all sorts of
media in demand
• Negligible Moser Baer Optical Media presence in
APAC region due to cheap media manufacturing
units in and around China & Taiwan. Also freight
cost is much higher in comparison to cost
occurring on purchasing media from APAC based
manufacturing countries
• In Latin American countries such as Argentina,
Brazil etc. lot of trading of optical media is done
in illegal way such as smuggling it from North
American countries. As in Argentina there is
safeguard measures on CDR’s, so CDR’s are
imported in the country through illegal means
Recommendations:
63
Latin American market is mainly Spanish based,
so language is one of the barriers. Moser Baer
can overcome this barrier in certain ways by
hiring person who is proficient in speaking
Spanish and have good selling skills. Also, this
gap can be fulfilled by appointing agents in Latin
America who are into either same or relevant line
of business. It would serve three main purposes,
which are as:
o These agents would act as interface
between Moser Baer and buyer
o Local person will be much aware of local
legal & economic framework and would
also know better way of reaching
prospects. Agent would have better know-
how of the market, buyers status etc.
o With the local presence in these areas,
buyers can contact Moser Baer for media
themselves and they would have local
point of contact for correspondence
Moser Baer can manufacture low cost media for
these regions as these regions are highly price
sensitive. So, company should focus on low cost
differentiation as these regions have huge
demand for media such as Brazil have 100-
120million pieces per month etc. These markets
are price driven markets.
Moser Baer should focus on catering to the
private label business, which would in turn yield
64
higher volumes. For countries like Brazil with 60
– 70% private label business.
Moser Baer can introduce its own brand in
Brazilian market. As per 2008 data, 60-70%
media sales in Brazil is represented by Private
Labels and rest is from OEM players. This shows
that there is scope for new brands or non-famous
brands. So, with aggressive marketing
techniques i.e. focus on pricing, creating brand
awareness and positioning it as a mid segment
brand which offers value for money, Moser Baer
can gain a foothold in this low priced and
competitive market. Once established in the
market our brand will surely command a premium
Moser Baer should try to tie up with local
manufactures supplying to Private Labels of that
country and having less production capacity of
media. Company can help ride through marketing
and distribution channel of such company by
manufacturing and supplying product for them.
As that company will already be settled in the
country, will also have all the resources in place
and know – how of the market. So,
manufacturing for them will be comparatively an
easy ride than to develop own distribution
network
Moser Baer should try to participate in fairs,
conclaves or business sessions, organized in
65
these regions through various trade associations
like CII, FICCI etc.
Glossary:
1. CD-R: A CD-R (Compact Disc-Recordable)
is a variation of the Compact Disc invented
by Philips and Sony. CD-R is a Write Once
Read Many (WORM) optical medium,
though the whole disk does not have to be
entirely written in the same session
2. CD-RW: Compact Disc Rewritable (CD-
RW) is a rewritable optical disc format.
Known as CD-Erasable (CD-E) during its
development, CD-RW was introduced in
1997, and was preceded by the never
officially released CD-MO in 1988
3. DVD-R: DVD-R is a Digital Versatile Disc
recordable format. A DVD-R typically has
a storage capacity of 4.71 GB (or 4.38GiB),
66
although the capacity of the original
standard developed by Pioneer was 3.95
GB (3.68 GiB).
4. DVD-RW: A DVD-RW disc is a Digital
Versatile Disc rewritable optical disc with
equal storage capacity to a DVD-R,
typically 4.7 GB.[1]The format was
developed by Pioneer in November 1999
and has been approved by the DVD Forum.
Unlike DVD-RAM, it is playable in about
75% of conventional DVD players
5. BDR: It is known as Blu-Ray Disc. Blu-ray
Disc (also known as Blu-ray or BD) is
an optical disc storage medium
designed/created by Sony to supersede
the standard DVD format. Its main uses are
for storing Play station 3 games, high-
definition video and data storage with
50GB per disc. The disc has the same
physical dimensions as
standard DVDs and CDs
6. Mini DVD: Mini DVD is an 80 mm
diameter DVD disc. In normal recording
(standard DVD quality), it holds 30 minutes
of video or 1.4 GB of data
References:
Websites
1. http://www.moserbaer.com
67
2. http://www.equitymaster.com
3. www.alibaba.com
4. www.tradekey.com
5. www.kompass.com
Report
1. SCCG – 2008
2. International Intellectual Property Alliance 2008
Special 301 Report
Organizations
1. Indian Embassies at Latin America and APAC
countries
2. Foreign Embassies of Latin America and APAC
countries at India
3. Confederation of Indian Industry (CII)
4. Federation of Indian Chambers of Commerce
and Industry (FICCI)
5. Indian Trade Promotion Organization (ITPO)
Reports
1. SCCG – 2008
68