marketing project pgcbm 17 106458 v1

Brand, Loyalty & Technology’s Impact on buying Television!

Brand, Loyalty & Technology’s Impact on buying Television! Market study to know upselling trends in TV segment

This paper presents about market forces playing role in deciding customers’ choice in

new series Television selection with pull and push demands. There are upselling trends

performed by dealers and retailers to attract customers to promote product sale. Study

has been conducted to understand customer’s current buying behavior in LED/LCD TV

sets offered by leading manufacturers in India and sold through retail network in

Bangalore. This study has concluded limited scope in addressing WANT of customers for

their future needs. There is need for further study to establish core development in

technology selling when “Customer is King” and he/she knows his/her preference before

stepping in any showroom.

3/18/2011

This project work is submitted in partial fulfillment for the requirement of

PGCBM XLRI JAMSHEDPUR, March, 2011

Submitted to:

Prof. Pingali Venugopal,

Project Guide, XRLI Jamshedpur

Submitted by:

Ravi Kiran Luthra

PGCBM-17/106458/RB10017

Ravi Luthra, PGCBM 17, RB10017/1006458 Page 1

Market study to know upselling trends in TV segment

DESCLAIMER

This project report is submitted by the author as pre-

requisite for the fulfillment of PGCBM course under

XRLI Jamshedpur for academic purpose only. The

views expressed by author in this report are personal

and based on data collected from various TV stores in

Bangalore City by meeting customers and Store

Managers.

This report is now part of XRLI Jamshedpur and the

same or any part thereof may not be used in any

manner whatsoever, without written opinion of XLRI,

Jamshedpur.


Table of Contents: ACKNOWLEDGMENT .............................................................................................................................. 3

ABSTRACT ............................................................................................................................................... 4

Chapter 1 ........................................................................................................................................... 5

Introduction: ........................................................................................................................................... 5

Indian Television Industry growth story: ........................................................................................... 6

Key developments in the Indian E&M Industry in 2008 ................................................................. 6

Impact of global economic downturn: .......................................................................................... 6

2010 Broadcasting Scenario in India: .......................................................................................... 7

Key Drivers for Entertainment Industry in 2009-10: ................................................................... 9

Chronological order of events: ...................................................................................................... 9

Regulatory wish list from Union Budget 2011-12: ....................................................................... 9

Marketing Universe: ............................................................................................................................ 10

Market Universe for High-end TV industry: .................................................................................... 10

Samsung & Armani LCD TV: ........................................................................................................... 10

Plasma vs. LCD TV Market - LCD is Clearly Gaining Ground ........................................................ 10

Players in Indian Market to offer LED-LCD TV ................................................................................... 11

TV sale through Retail Stores in India:........................................................................................... 11

Chapter 2 ........................................................................................................................................ 12

Introduction: ........................................................................................................................................ 12

Store behavior: ................................................................................................................................ 13

Sales promotion strategy: ............................................................................................................... 13

Push strategy: .............................................................................................................................. 13

Pull Strategy: ............................................................................................................................... 14

Purchase behavior attributes: .................................................................................................... 16

Survey Summary: ............................................................................................................................ 16

Chapter 3 ........................................................................................................................................ 21

Introduction: ........................................................................................................................................ 21

Marketing environment for TV manufactures: .............................................................................. 21

Product Life cycle of TV Products: .................................................................................................. 21

Brand ranking in LED-LCD TV segment (based on survey): .......................................................... 22

Competitive analysis of LCD LED players in Indian market (Period taken 2008-2011): ....... 22

Suggested marketer approach:...................................................................................................... 23

Summary: ............................................................................................................................................ 24

Reference: ........................................................................................................................................... 24

Glossary: .............................................................................................................................................. 24


ACKNOWLEDGMENT

At the outset, I would like to thank my mentor and

guide Prof. Pingali Venugopal, giving me direction to

understand marketer approach throughout my course

and instrumental in completion of my final project. It

would have been impossible for me to give shape to my

final project without his able guidance and his precious

time given to me in odd hours. I would like to dedicate

my project to my mentor Prof. Pingali Venugopal.


ABSTRACT This paper presents about market forces playing role in deciding customers’

choice in new series Television selection with pull and push demands. There

are upselling trends performed by dealers and retailers to attract customers

in promoting their products sale. Study has been conducted to understand

customer’s current buying behavior in LED/LCD TV sets offered by leading

manufacturers in India both MNC and Indian manufacturers and sold

through retail network in Bangalore. The paper is all about understanding

Power of Three; Brand, Loyalty & Technology (BLT). These distinct drivers

are creating churn in high-end consumer durables. For some customers,

Loyalty is no more taboo but some customers continue to be which can be

understood as generation gap.

The project study is presented in three main chapters.

Chapter 1 shall be covering growth story of leading TV brands in Urban

India, keeping target audience as Bangalore. This shall also cover brand

positioning done by marketing managers. This chapter shall also highlight

these companies brand and product growth strategy for last two-three years.

Chapter 2 covers real time data analysis based on survey conducted by

author himself. The survey is designed to capture customer behavior while

shopping LED/LCD/Plasma TV market however, focused remained in the

area of LED and LCD TV sales and with an eye on future NEED.

Chapter 3 shall be concluding chapter where we shall further analyze the

new opportunities and threats, doing SWOT analysis and arriving at

direction setting for marketer to promote their existing brand value with

blended approach.

This study has concluded with a limited scope in addressing WANT of

customers for their future needs. This paper is establishing a need for core

development in technology selling when “Customer is King” and he/she

knows his/her preference before stepping in any showroom. A wish list of

advance features in next gen TV has been created, a looking forward

approach that shall obsolete the current TVs in market and set open new

challenges for marketers to identify new ways to bring back customers.

Further study is required to understand the taste of customers and true

technological advancement in binding Brand and Loyalty for manufactures

like Sony, Samsung, LG & Panasonic; four MNC companies and doubling

threat for Indian companies to sustain growth in competitive market.

The clash of Titans is inevitable in next three years of technology boom.


Chapter 1

Introduction:

Indian TV market has expended well in past three years, thus

giving room for many growth stories in electronics white goods

industry. Consumers’ changing buying behavior is causing big concerns for

marketer to understand the pulse of Indian customers. Globalization of

international products and travel across continental has bridged the

knowledge gap for India urban customers. The vital part of the growth story

is that customer is no more looking for “Product Demo” rather interested in

more understanding about multiplyzation of existing and future gadgets

with current TV Sets in market.

Technology is on forefront in visual entertainment space, providing host of

features to demanding customers “Yeh Dil mange more”. To understand the

blended demands, comprising of present and future needs; proposed study

was desirable.

We would discuss growth story about Sony, Samsung, LG, Panasonic, Onida

and Videocon brands etc…; offering high quality television sets in Indian

and International market.

There are constant innovations from all these manufactures to be at their

best, augmenting new technology in product betterment and offering

customer their feature rich products at competitive price.

Samsung was first to launch LCD and 3D TV in India and worldwide as

pioneers and reaped the maximum benefits. Then Sony acted fast as early

followers to this brand wagon by offering Monolithic Designed TV; followed

by LG and Panasonics and so on…

The market environment was set on fire by Samsung so early that it took

time to catch up with pace for giants like Sony, Panasonic and LG. These

environmental factors are responsible for these dynamic changes.

These marketing environmental factors have changed the face of India

household single TV with single channel color broadcast from Doordashan

to multi TV and multi-channel broadcast are:

Macro–environment Political; Economic; Socio cultural;

Technology; Natural and Infrastructural

The


Micro–environment Suppliers; Buyers; Competition; Other

Stakeholders

Internal–environment Production; Budget; Politics

The other two key environmental factors are:

Demographic environment Exponential City limit growth; Younger

& educated population; Longer life of span; Life style changes – mall

cultural etc…

Economic environment Rise in per capita income; Consumer

spending habits; Goods availability; Life style changes

Indian Television Industry growth story:

We shall go through the market data presented in line with above stated environmental factors. The market data about TV Industry and its growth projection in Indian market is significant. The first impression received from

the details looks impressive. In recent survey conducted by PricewaterhouseCoopers in its “Indian entertainment and media outlook

2009" report has estimated that the Indian Entertainment & Media (E&M) industry will return to double digit growth in 2010-11.

Key developments in the Indian E&M Industry in 2008

Impact of global economic downturn:

Television - Recession had hit hard all sectors in 2008-2010. A positive

aspect for the television industry was that viewers should be spending more

hours at home for cost effective entertainment in tough times. This had leaded an opportunity for television to develop an unassailable lead between itself and other media. Moreover, that was the opportunity window for

Indian TV manufacturing Industry.

Investments in the Television Industry in 2008 through M & A:

With recession on board, it was expected rise in demand for mass media

entertainment based programs that could fuel growth in sale of TV Sets. To

understand this turning point, we need to understand how TV based

entertainment programs had attracted FDI in India. The focus was on

content generation, availability and transmission. The data collected from

various publications about flow of FDI during that period. The below data

supports my point about potential growth had lead through these

acquisitions. The objective was to enable quality content generation and

transmission for Indian audience at national and international level.


Digitalization initiatives in 2008 and now:

In 2007, TRAI proposed a new initiative by name “Head-end-In-The-Sky

(HITS)” model as an alternative to the existing cable distribution. Instead of the MSOs providing the bundle, there will be a single HITS operator who will

prepare the bundle of channels and beam it to the Head-end in the satellite. With the average Indian getting younger, and hence more likely to spend on non-essentials, the entertainment industry has the potential to grow

explosively in the future. Now the industry is ready to enter a second stage of growth powered by the twin engines of technology (availability of quality infrastructure and the accelerated penetration of digital connectivity) and an

enabling regulatory environment.

2010 Broadcasting Scenario in India:

Annual growth rate for the television industry was projected by 22% over the next five years. At present, there are 110 million TV households in India; out of which 70 million are cable and satellite homes and the public

broadcaster, i.e. Doordarshan (DD), serves rest of 40 million people.

The notable factors to fuel growth of TV demand require infrastructure

support. It is notable that India has emerged as strong player in attracting

the investment the investment in 2008.

The data table given below shows that India had alone attracted FDI

investment ` 8206.6 million alone in media enrichment. In addition to this,

there was huge investment in infrastructural development for content

transmission. Since the FDI was restricted to less than fifty percent so we

could estimate that more than ` 135 billion was invested during recession

time which itself has a record when we compare with other countries.

Indian TV industry is going to poise for huge growth, writing new chapter in

history of India on Content enrichment.


The above statistics shows that India had golden goose at that time and

needed quality players in the field of Next generation TV manufacturing, setting up plants in INDIA and providing economic scale of operation.

Revised forecast received in 2009 from KPMG; firm up TV growth industry in

India.

M&E Industry

(INR Billion)

2005 2006 2007 2008 CAGR

(%)

2005-

08

2009 2010 2011

(P)

2012

(P)

2013

(P)

CAGR

(%)

2009-13

Television 163.3 182.5 211.3 240.5 13.8% 262.7 295.6 341.7 399.1 472.6 14.5%

Source: KPMG analysis

Bird’s eye view of TV channels growth:

The number of private satellite TV channels had grown astronomically over the years, from One TV channel in 2000 to 394 TV channels by 2009.

In Jan 2010, this number has crossed 500 marks and 100 more channel applications as on hold with I&B.

There is no consideration from I&B to allow any more channels and seeking TRIA’s guidelines to regulate mushrooming of these channels.

In addition to this, a number of foreign broadcasters are down linking their channels into India. There are 67 TV channels, uplinked from abroad, have

been permitted registration to be down linked in India during the years 2006-2009.

The above data churn gives us enough confidence to look for bright players in Indian market to capture this opportunity of business in manufacturing

and broadcasting.


Key Drivers for Entertainment Industry in 2009-10:

Gradually liberalizing attitude of the Government

Greater interface with international companies Advancement in technology

Favorable regulatory initiatives Liberalized foreign investment regime

Chronological order of events:

Year Govt. initiatives/Panel

recommendations

Investment in

growth sector

Performance

measurement

Impact on Industry

segment

2007 TRIA recommendation to

initiate constitution of

parallel TV signal distribution (HITS) to

existing cable network

Infrastructural

in Towers to

relay digital signals

Enabling

regulatory

environment for Govt.

Roll out of HITS and

CAS to all metro

cities in 2008, boost for TV industry

2008 Permission to invest in

infrastructure to private

parties over DD through

FDI below 50%

FDI contribution

of ` 135 billion

in during

recession time in

infrastructure

development

FDI contribution

of ` 8206.6

million alone in

media

enrichment

Healthy growth in

entertainment &

media industry by

10%. TATA, AIRTEL,

SUN TV, Reliance Industry and Dish

Industry came to

forefront for growth

2009 Based on industry

growth, Govt. raised cap

in FDI to investment above 50%

TV

Manufacturing

FDI contribution

improved to `

295.6Billion in

TV industry

New plants in TV

manufacturing

2010 Tax incentive in Direct

taxes and Indirect Taxes by Govt.

Push to Special

Economic Zone growth for max

tax benefits

Reduced

production cost of product and

content for TV

industry

Improved viewership

Regulatory wish list from Union Budget 2011-12:

Government should come up with solution to the industry challenges for improved performance in future. These concerns are:

Foreign Investment:

Enhancement in FDI limits for cable network and DTH to 74 percent. This is required to bring at par with other competing technologies such as IPTV.

The good point is that Government has accepted to review this present limit from 49% to 74 in selective sectors.

Double Whammy:

DTH players are subjected to both service tax and entertainment tax. There

is a demand for removal of such double taxation. Good and Service Tax possibly may bring solution to this problem.

Income-tax provisions:

Rectification of the anomaly/disconnect between the down linking policy and the tax provisions regarding conclusion of contracts or holding of marketing /distribution rights by the Indian Company and its consequential

taxability.


Marketing Universe:

Market Universe for High-end TV industry:

The Expanding Digital Universe, a white paper released by IDC with the help

of EMC shows the vision of today’s world, calling Digital Oilfield where the content shall transform from analog signal to digital format. Finally, the growth of the digital universe shall drive more by penetration of the devices

into the population than by an increase in device capacities or resolutions. It is for the marketer and product development companies to en-cash this

golden opportunity. I would like to share one more clipping where Samsung

has engaged Armani (well known in fashion world) to create highly stylized

HDTV for high-end consumer.

Samsung & Armani LCD TV:

It is evident that both product manufacturers and marketers are serious to set ground for high-end Entertainment. Indian consumers have seen latest

generation Plasma TV and then LCD. Both products gave Indians a unique experience of digital world and understanding the product differentiation.

Plasma TV has been with us for some time now and still hot to many consumers. However, industry experts summarize that LCD/LED TVs will be more widespread in the future due to their better energy efficiency than

plasma TVs. Finally, it is consumer’s choice - Plasma or LCD-LED, which is the better.

Plasma vs. LCD TV Market - LCD is Clearly Gaining Ground

Indian consumers have been quick to choose LCD TVs over plasma due to futuristic technology and less cost. The market demand for these high-end

http://universeofluxury.com/electronics/samsung-armani-lcd-tv/

http://universeofluxury.com/electronics/samsung-armani-lcd-tv/


technology products is increasing however; it is unclear if local manufacturers and suppliers prepared to grab the opportunity? The answer

is that “Not yet”.

However, major Korean brands like Samsung and LG, Japanese brands like

Sony and Panasonic, and Indian brands like Videocon and Onida are heavily

focusing on promotional efforts around LCD TVs alone. The other good

reason of LCD sales going high is due to drop in LCD prices by 30-40

percent annually. Retailers are more comfortable in selling LCD TV sets than

other CRT or Plasma based TV sets. Consumer electronics firms have

invested so much in promoting LCD that in the mind of an ordinary

consumer, LCD TV has become synonymous with flat panels." On an

average, LCD TVs are growing year on year in the range of 80 to 100 per

cent.

The estimated market size of LED LCD TV is close to 20 million sets in

India. This also serves as a motive to a bright 2010 market outlook. The

unseen benefit for Plasma TV’s growth is in large screen size, which is

expected to grow by 15 percent, mainly new promotion drive, giving life-size

experience watching customer’s most favorite program like IPL, World Cup

Football matches in Clubs/ hotels etc…

Players in Indian Market to offer LED-LCD TV

TV sale through Retail Stores in India:

In the last five years color television industry (CTV) had witnessed dramatic

changes in the intensity of competition. Marketers are offering all sorts of customer’s pro schemes to improve sales of their brands; right from TV exchange schemes, gifts, and price offs promotional prizes, deferred

payment schemes, banker’s loan for easy payment plan, zero EMI and other incentives as promotional tools to attract existing and new customers. That certainly has made the market more competitive. Indian market leaders in

CTVs’ like Videocon, BPL and Onida, holding entrenched position got challenge from MNCs such as Samsung, Sony, LG, Philips, Hailer,

Panasonic and Sansui. It was clear that with new international entrants, the industry had to go through turbulence. Companies were relooking at their strategies and desperate growth. We shall study the competition

impact for Videocon, Onida, Samsung, Sony, LG and Panasonic. Author conducted a comprehensive study; visiting multi-brand stores and exclusive

showrooms of Sony, Samsung, LG and Panasonic and got first hand feedback from Store managers and customers about their choice of TV and buying process they would like to choose. These details will come up in

Chapter 2.


Chapter 2

Introduction:

Selling pressure in any electronic store is always high and

remains throughout the year. Gone are the days when we used

to see sales pressure during festival seasons such as Diwali and Durga Puja

in north and Pongal, Ugadi and Makar Sankranti in South India. The

pressure on sales is high due to fear of losing sales month-on-month due to

technology getting outdated and launch of new models happening almost

every alternate month. Dealers, Stockiest and Retail Stores are having

sleepless night due to growing cost of inventory and lumpy sales. This is one

big reason why marketers have to work hard, bringing out attractive sales

models throughout sales.

I have noted five distinct retail stores models:

1. Exclusive Stores owned by Companies such as Sony, Samsung,

Panasonic etc…

2. Franchises Exclusive Stores co-owned by companies with local

partners such as Samsung with Pai Electronics

3. Multi-brand Electronic Goods Retails Store owned by existing

established brands as brand extension such as Reliance Digital or

Croma by Tata, e-Zone from Future Group, Next and Adishiwar

etc…

4. Multi-Brand Electronics Store owned by Hypermarket brand owners

such as Big-Bazar and Total Mall, etc…

5. Individual showroom owner’s for LG, Onida and Videocon brands

Each of these stores has differentiated its sale strategy when it comes brand

positioning and product selling. They call it, as “My Store Strategy is

different”.

These stores are selling units at Marketing Operating Price (MOP), which is

always below printed MRP. Sales manager are under pressure to give revised

MOP based on product age and inventory in stock. Higher the stores

attached to one distributer, lower the MOP.

There is noticeable conflict between Retail outlets such as Exclusive stores

behavior than Multi-brand stores. The 2x2 matrix is used to capture

behavioral differentiation.

The


Store behavior:

B. Exclusive Company Showroom Sale is least concern

High profit motive

Specialization service is key offering

Brand value – Very High

Post sales service preference is another key selling strategy

Product and Brand marketing through company sale channels

C. Hypermarket (shop-in-shop) Brand loyalty – Neutral

Volume driven sales

Low profit motive

Parallel branding (Pushing product variants with similar features at low price)

Store promotion based on emotions

A. Exclusive Showroom Sale is concern

Profit is primary motive

Brand value – High

Brand loyalty - High

Would prefer company backing for sales promotions

Look for loyalty bonus as main drive

Mostly dependent on personal network

D. Multi-brand store High sales primary motive

Store runs promotional schemes

Profit motive – Medium

Consulting selling for long term needs

Brand loyalty – Neutral

Upselling is key focus keeping in mind young couples need

Parallel brand offering (Store brand benefit)

Sales promotion strategy:

Multi-brand stores and Hypermarket outlets such as Reliance Digital, Big

Bazar, e-Zone (Future Group), Total Mall, Vivek’s or Adiswars pick up

majority of the sales. Higher the numbers of such individual stores in City,

better the negotiating power with OEM/Stockiest.

During the discussion with Store managers’, author managed to find out

Marketer & Store Push and Pull selling strategy.

Push strategy:

Marketer is creating push strategy by launching new or improved version of

same products at shorter intervals by timing the market.

As a long-term strategy, marketer plans for sponsorship right of

international events like FIFA World Cup/ICC World Cup.

Sony took sponsorship for FIFA World Cup in 2010 and elevated its status

for partnership in 2014 FIFA World Cup scheduled in Brazil.

B

R

A

N

D

V

A

L

U

E

H

I

G

H

L

O

W


LG Electronics has long-term partnership for promoting International

Cricket. For 2011 ICC World Cup, LG is again on forefront in pushing ICC

World Cup special TV promotional campaign.

Samsung has long-term sponsorship with Olympic since 2007 until 2016.

Pull Strategy:

Whereas, Store is using pull strategy to attract customers with lucrative

offers month-on-month (based on emotional quotient of people). Here I

would like to give one example. Based on author’s experience of three year

back; goodies based sales were very less and mostly attached summer and

winter season festival seasons such as Diwali, Narka-chturthy, Christmas

and New Year and during summer such as Holi, Independence day etc.

Launch of IPL and T-20 were the game changers in TV industry where

people would like to watch there a month long international cricket where

size of TV screen does matter.

Another noticeable Pull strategy is to use of Indian and western festivals to

attract sales throughout the years. Sharing the table for reference:

# Month Sales promotion factor

1 Jan New year sale campaign

2 Feb Valentine’s day

3 March Maha Shivratri ,Holi

4 April Ugadi, Ram Navami

5 May Lean month

6 June FIFA World Cup-2010)

7 July FIFA World Cup-2010)

8 August Independence Day, Raksha Bandhan

9 September Navaratra’s (Durga Puja)

10 October Narka-chturthy, Dussera

11 November Winter season sales

12 December Christmas time

At Store level, crowd puller ads such famous “Blind fold Sale” from e-Zone of

Future Group; ` 1 sale for any electronics goods from Total Mall; Buy back

of old used household articles at unbelievable price (offering sale coupons)

and generate new sales through coupons from Big Bazar (Future Group).

Reliance Digital and Croma from TATA have also bi-monthly sales clearance

to pull crowd by offering 30-40% discount on MRP. In addition to this

Croma has launched LED-LCD under brand name “Croma”. Being an in-

house product, Croma is offering 40% less price than any other latest brand.

http://www.travelindia-guide.com/festivals_holidays/maha_shiv_ratri.php


Purchase behavior attributes:

As part of my study about customers purchase behavior and their WANT in

future, designed one questionnaire and asked customers to fill it. The

questionnaire was designed to capture attributes during product purchase.

Marketer approach to sell future TV and capture brand loyalty Survey.pdf

The attributes are:

Problem Recognition

Information search

Alternative evaluation

Purchase decision

Post-purchase behavior

Survey data received from 83 participants.

Marketing Survey Results.pdf

Survey Summary:

Attributes 1st takeaway 2nd takeaway 3rd takeaway

Problem recognition 74.1% looking for

Brand preference

64.2% looking for

Value for money

50.6% looking for Post-

sales support

Information search 79% looking for

technology

44.4% looking for

Cost factor

28.4% would like to go

by their perception

Alternative evaluation

79.3% would not

like to try unknown brand

25% feel to fill up

life-style need with High-end computers

31.3% would like to wait

till they get life style matching product

Purchase decision

79.3% would like

to consult life

partner before PD

75.9% would like to

outsource purchase

decision to experts

56.8% do not believe in

“Best Buy” scheme

Post-purchase behavior 74% feel satisfied

61.4% feel that new

generation TV are

must to match life style

Sony as brand still rule

the World

The above table shall help marketer to strategies market stimuli to influence

buyer’s characteristics such as:


Attitudes

Motivation

Perceptions

Personality

Lifestyle

Knowledge

Highlights of survey are:


Chapter 3

Introduction:

last two chapters, we covered nuances of economic environment and

changing needs of customers. Here in this chapter, we shall review key

attributes used by marketers to improve their sales.

Marketing environment for TV manufactures:

Brand manufacture Selling Attributes Emotional factor

Market universe

Perceived value

Technology;

Picture perfect

Brand

conscious

Upper and

Upper

middle class

Very

High

TURN ON TOMORROW

Turn on

Tomorrow; Tech friendly

Brand conscious

Upper and

Upper middle class

Very High

Clarity Beyond

Reality Affordability

Middle and

upper

middle class

Medium

Feel the

experience;

Efficient Energy Saving

Affordability

Middle and

upper middle class

Medium

Experience the

Change Affordability

Middle and

lower class Medium

Eye Care

Viewing

experience;

fear of

eyesight

problems

Old age

Officer,

Young

mothers

High

Product Life cycle of TV Products:

Based on my study about current TV products and market segmentation; PLC was developed by

using different values given through rating.

In

http://www.sony.co.in/microsite/3d?hpid=3d:hubpage:RHTB

http://www.lg.com/in/index.jsp

http://www2.panasonic.com/consumer-electronics/shop/VIERA-Televisions/VIERA-3D-HDTVs.list.170042

http://www.videoconworld.com/index.php


























Introduction Growth Maturity Decline

Product Life-cycle: TV segment

Time

Gro

wth

Pot

enti

al

CE

G

A

A 3D LED TV

B LED TV

C Plasma TV

D UltraSlim TV

E Flat TV

F Samsung Media

B

F

D

CRT based modelG

Brand ranking in LED-LCD TV segment (based on survey): Brand Perceived value Competition Marketing effort Sony Very High High Moderate

Samsung High High High

LG High High High

Panasonic Moderate Very High Very High

Videocon Moderate Very High Very High

Onida Moderate Very High Very High

Competitive analysis of LCD LED players in Indian market (Period taken 2008-2011):

I did a compressive data study. These facts are presented based on

discussion with company officials and Internet based published stories.

Company

Name

Strategy

Followed to counter rivalry

2009-10

share

2010-11

share

Competitor Unique differentiator

Sony India 25 % 30 % Samsung & LG 1. Be in the mind of your customer: Investment of

` 18 B to promote LCD and Plasma TV alone.

2. Product Design: Picture & Design and technology

3. Dealers network: Double up the existing dealer network from

2500 to 5000 in 2010-11

Samsung

India

30 % 31 % LG, Sony,

Videocon,

1. Be in the mind of your customer: Investment in product

branding by 3.5-4% of total turnover.

2. Production facility: Investment of ` 9B for plant & m/c

3. Samsung Plazas: Double up the numbers to 600 from 300.

LG India 23 % 21 % Samsung,

Sony,

Videocon

1. Be in the mind of your customer: Investment of

` 4B in 2009-10 for prod marketing.

2. Product development – Investment of ` 0.6B by 2013 for

product customization

3. Focus on product uniqueness

Videocon Ltd 10 % 10 % LG, Samsung

& Onida

1. Product branding –Investment in product marketing.

2. Corporate re-branding investment

3. Product Innovation

Mirc

Electronics

Ltd (Onida)

9 % 6 % Videocon,

Samsung, LG

& Sony

1. Product innovation: Use of Integrated technology

2. Corporate re-branding

3. Value for money


The above graph shows that every company is in the foray of capturing

maximum market share of LCD LED segment. They want to reach out to

their customers in shortest possible time and setting up unrealistic target

for themselves. It is worth to note that all companies know the nearest

competitors and planned their strategy to counter rivalry.

Suggested marketer approach: Survey conducted by author provides direction for marketer to focus on building brand

value where customer believes in Brand that reflects its values in technology trend,

constant innovation and delivering value for money. Reading customer’s mind is like

asking what woman wants. There is so much of variation within the targeted

segmentation. A careful study on regular basis shall create a good database to help

marketer in spotting the changes in customer’s taste. Highlight of the study give below.

Samsung,

31%

Sony, 30 %

LG, 21 %

Others, 18 %

The LCD LED PIE: TV Unit Sales in 2010-11


Summary: This project gave me an opportunity to work in product market testing. This experience

gave me good exposure in understanding the challenges faced by marketers. With this

study, I could able stop latest trends in product selection by individuals. I would like to

Thank Prof. Venu for giving my guidance on every step in completing this paper.

Overall, I enjoyed working on this assignment.

Reference:

For secondary date:

From Internet:

http://www.medianewsline.com/news/132/ARTICLE/4864/2009-07-29.html

http://www.pwc.com/en_IN/in/assets/pdfs/PwC-Indian-Entertainment-and-Media-

Outlook-2009-2.pdf

http://www.kpmg.com/IN/en/ThoughtLedership/In%20the%20interval-

%20But%20ready%20for%20the%20next%20act.pdf

http://www.indiainbusiness.nic.in/industry-infrastructure/service-sectors/media-

entertainment.htm

http://www.livemint.com/2009/01/14185541/LG-India-eyeing-top-slot-in-LC.html

http://www.business-standard.com/india/news/videocon-eyeing-18-lcd-tv-market-

share/11/55/67085/on

http://www.samsung.com/in/news/newsRead.do?news_seq=18428&gltype=localnews

Printed material

Times of India: Media Guide

HDTV Magazine (http://www.hdtvmagazine.com)

PC Magazine

Glossary:

LED – Light Emitting Display

LCD – Liquid Crystal Display

DTH – Direct To Home

CAS – Conditional Access System

CRT – Cathode Rays Tube (Color picture Tube)

http://www.medianewsline.com/news/132/ARTICLE/4864/2009-07-29.html

http://www.pwc.com/en_IN/in/assets/pdfs/PwC-Indian-Entertainment-and-Media-Outlook-2009-2.pdf

http://www.pwc.com/en_IN/in/assets/pdfs/PwC-Indian-Entertainment-and-Media-Outlook-2009-2.pdf

http://www.kpmg.com/IN/en/ThoughtLedership/In%20the%20interval-%20But%20ready%20for%20the%20next%20act.pdf

http://www.kpmg.com/IN/en/ThoughtLedership/In%20the%20interval-%20But%20ready%20for%20the%20next%20act.pdf

http://www.indiainbusiness.nic.in/industry-infrastructure/service-sectors/media-entertainment.htm

http://www.indiainbusiness.nic.in/industry-infrastructure/service-sectors/media-entertainment.htm

http://www.livemint.com/2009/01/14185541/LG-India-eyeing-top-slot-in-LC.html

http://www.business-standard.com/india/news/videocon-eyeing-18-lcd-tv-market-share/11/55/67085/on

http://www.business-standard.com/india/news/videocon-eyeing-18-lcd-tv-market-share/11/55/67085/on

http://www.samsung.com/in/news/newsRead.do?news_seq=18428&gltype=localnews

marketing project pgcbm 17 106458 v1

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