INTRODUCTION

The Videocon group emerges as a USD 2.5 Billion global conglomerate continuing to set trends in every sphere of its activities from a conference room sized assembly line in 1979.

Consumer Electronics, Home Appliances & Compressor manufacturing in India .we enjoyed pre-eminent position in terms of sales and customer satisfaction in many of our consumer products like Color Televisions and Washing machines and Air Conditioners, Refrigerators, Microwave ovens and many other home appliances, selling them through a Multi-Brand strategy with the largest sales and service network in India. Refrigerator manufacturing is further supported by our house compressor manufacturing technology in Bangalore, Display industry and its components With the Thompson acquisition Videocon has emerged as one of the largest color picture tube manufacturers in the world operating in Mexico, Italy, Poland and China continuing to lead through new innovative technologies like slim CPT, extra slim CPT and High Definition 16:9 format CPT.

In Color Picture Tube Glass Videocon is one of the largest CPT Glass manufacturers in the world with a high level of experience and technical expertise operating through Poland and India. Videocon will leverage on this synergy after the Thomson acquisition to internally source glass for its CPT manufacturing increasing efficiencies and lowering costs. Oil and Gas an important asset for the group is its Ravva oil field with one of the lowest operating costs in the world producing 50000 barrels of oil per day. The group has ambitious plans for expansion in this sector globally.

OBJECTIVES OF THE STUDY

MAIN OBJECTIVE:

Main objective is to know the consumer and dealer perception about the Videocon products. For this we had gone to dealers counter all over the southern costal region of A.P. with both listed and unlisted dealers to understand clear picture of the consumer durable product market and competitive position of Videocon product.

This involves:-

Going to dealers counter and asking question related to sales of Videocon product and services.

At the same time we were asked questions to consumer relating to Videocon products.

Analyzing data by use of different statistical methods.

SECONDARY OBJECTIVES:

To know the consumers’ tastes in selecting the brand.

To know the factors influencing consumer purchasing decisions.

To know about the consumer attitude and perceptions in the changing market scenario.

To find out the demand for the products of different brands in different segments.

To find out which type of advertisement will influence customers more.

To know the dealers behavior towards companies

METHODOLOGY

SURVEY: - It is technique of collecting information from different sources through different methods like questionnaire, interviews, scheduling etc. and analyzing the collected data. There are different steps involve in it, these are:-

MARKETING RESEARCH PROCESS

Define the problem

Determine survey design

Identify data type and source

Define data collection forms and questionnaire

Determine sample plan and size

Collect data

Analyze and interpret the data

Prepare the research report

SAMPLING: - It is technique of selecting a convenient size of population for accomplishment of objective through probability and non probability sampling.

Methodology used in Project:-

For taking sample from the large population of southern costal region, we used Simple Random sampling technique because it’s effective and easy method to draw from large population.

Simple Random Sampling:-

Every individual or item from the population has an equal chance of being selected.

Selection may be with replacement or without replacement.

Its probability sampling technique which is used widely by all leading corporate firm to conduct different kinds of survey.

Samples

Non-Probability Samples

Probability Samples

Judgment

Convenience

Simple Random

Stratified

Systematic

Cluster

LIMITATIONS OF THE STUDY

a. Area is too big so it’s very tough to cover all the places in southern costal region; it covers four districts under Videocon branch office.

b. Dealer’s counter located at all around the region, so it’s not a very easy task to reach there for a newcomer.

c. The study is limited to a period of two months which is not sufficient.

d. By using this report any one can’t take decisions on these products.

e. The survey could only be made later part of the day as a result dealers were some what uninterested to respond. If the same time a couple of customer visiting the retail shops dealers feel irritated to answer our question, so it takes a huge time to get all answer.

f. Some time dealer indifferent attitude, to give answer of few question and became irritated, no mood factor was also be major barrier to us.

g. Researcher has no previous experience in the related fields. Despite that it is to be noted that the survey has been carried out to the best of the researcher’s ability.

INDUSTRY PROFILE AND COMPANY PROFILE

The consumer durables industry is showing buoy and trends in all the three segments of white goods, consumers’ electronics and electronic components. It is positioned for further growth because of emerging opportunities and strong fundamentals of the economy.

The growth in production is more in terms of quantity (or volume) than value terms for a number of products. This has happened because of constantly falling prices over the years due to comparison among the major players, aggressive marketing strategies and declining important tariffs. Quality products with superior technology and technology up gradation have helped the industry to achieve higher growth in terms of volume and also in higher realization in value terms.

Removal of licensing restrictions has encouraged capacity addition by both the domestic and multinational companies. Competitive strategies revolve around string brand differentiation and prices. The share of unorganized segment has come down sharply to only 8 to 10 per cent from 40 to 50 per cent because of growth in production in the organized segment and domestic availability of branded products due to lowering of import duties and other liberal measures. The price difference between branded and unbranded goods had narrowed down and with branded players providing good after-sales services and support consumers prefers to buy branded products. The increase in production in the organized segment will help in generating more revenue for the government. The consumer durables industry appears to have two clearly differentiated segments. The MNCs have an edge over their Indian counterparts in terms of technology combined with a steady flow of capital. The domestic combined compete on the basis of their well-acknowledged brands, an extensive distribution network and an insight in local marker conditions.

Demand is cyclical and seasonal. It is high during festive season and generally dependent on good monsoons. Purchase is done mostly during the harvest, festive and wedding season- April to June and October to November in North India and October to February in the south. Rural India, which accounts for nearly 70 percent of the total no of household, offers plenty of scope and opportunities for the white goods industry. The urban consumer durable market for products including T.V. is growing annually by 7 to 10 percent, where as the rural market is zooming ahead at around 25 percent annually.

Increasing consumer awareness and preference for new models have added to the demand. Products like Air-Conditioners are no longer perceived as luxury products but are treated as necessities in the changed socio-economic environment with changed life-styles.

Attractive consumer loan schemes with reduced interest rates over the years by the financial institutions and commercial banks and the hire-purchase schemes have added to the surge in demand. Besides, the consumer goods companies are themselves coming out with attractive financing schemes to consumers through their extensive dealer network.

SEGMENT –WISE ANALYSIS

AIR CONDITIONERS:

The Indian air-conditioner (AC) industry, which was mainly dominated by players like CARRIER and VOLTAS, has been taken by the new MNCs in the last few years. The market is now dominated by LG and SAMSUNG besides VOLTAS and CARRIER.LG is the market leader with a market share of 29 per cent followed by VOLTAS (11 percent) and by CARRIER and SAMSUNG (9.2 percent each) in addition to other players like HITACHI and VIDEOCON.

The industry is almost divided into two almost equal-sized segments; room air-conditioning and package air-conditioning. A significant trend is the growing for split ACs, which are estimated to have contributed 30 percent of the total sales in 2006. The share of unorganized segment has come down sharply to only 8 to 10 per cent from 40 to 50 per cent.

REFRIGERATORS:

The Indian refrigerator market, estimated at 3.70 million units in the year 2005-06, is dominated by WHIRLPOOL, GODREJ, ELECTROLUX, KELVINATOR and LG. These brands account for 78 per cent of the market.

WHIRLPOOL and GODREJ are the top two players, with market shares of 27 Per cent and 20 Per cent, respectively. ELECTROLUX, KELVINATOR and LG compete for the third and fourth positions with market shares of 16 Per cent and 14.5 Per cent, respectively. VIDEOCON (11 percent), SAMSUNG (6 percent), BPL (4 percent), VOLTAS and AKAI are the other significant players.

The direct cool segment continues to dominate the Indian refrigerator market compared to more expensive frost-free models. The growth in this segment, though marginal, has been driven by factors like the availability of low-priced model due to competitive pricing and rising income of middle class.

WASHING MACHINES:

The washing machine market is divided into two segments. Semi-automatic washing machines accounted for about 78 per cent of the total washing machine sales in 2005-06. In semi automatic washing machines, LG is the market leader holding 27 percent share followed by VIDEOCON (24 Per cent), WHIRLPOOL (17 Per cent), SAMSUNG (16 Percent), GODREJ (5 Per cent), BPL (4 Per cent) and ELECTROLUX (3 Per cent). In the fully automatic segment (estimated at 3 lakh units), LG is the market leader holding 20 per cent share followed by IFB (17 per cent).

Unlike western countries, there is still large demand for semi-automatic ‘twin-tub’ washing machines because of their much lower price. Trends in demand for washing machines have been very similar to those for refrigerators.

MICROWAVE OVENS:

The microwave oven market is dominated by LG, SAMSUNG, KENSTAR and WHIRLPOOL. These brands account for 94 per cent of the market. LG and SAMSUNG are the top players with market shares of 36 per cent and 26 per cent, respectively. VIDEOCON, National IFB and Inalsa are among the other players in the market.

CONSUMER ELECTRONICS AND TELEVISION SETS:

Black & white (B&W) televisions are giving place to color televisions, the demand for which is moving fast and registering double-digit growth. The established market players like SOLITAIRE, WESTON and BELTEC have given way to some more competing companies, domestic as well as foreign like PHILIPS India Ltd, BPL, SONY, VIDEOCON International, THOMPSON and ONIDA.

The market is dominated by LG, SAMSUNG, BPL, ONIDA, VIDEOCON and SANSUI accounting for 60 per cent market share. LG and SAMSUNG have emerged as the top two players with market share of 15 per cent, respectively.

The 63.5cm (25-inch) and upward models account for 11 per cent of the total CTV market.

The demand for a second television set in homes is gradually picking up. This is largely due to increase in the number of cable channels, reduced CTV prices, technology up gradation and attractive finance schemes. Demand from the rural and semi-urban market goes a long way in increasing the market size for CTV.

In the CTV market, there has been a significant size in flat TV’s, which have jumped from 7,35,000 units in 2004-05 to almost 8,00,000 units in 2005-06. The market for flat televisions is growing at more than 100 per cent for the last few years.

TABLE-I

GROWTH IN PRODUCTION OF CONSUMER DURABLES

ITEM UNITS 2004-05 2005-06 PERCENTAGEOF GROWTH

Refrigerator Lakh units 35 37 5.72Air-Conditioning Lakh units 8.25 9.5 15.16Washing Machines Lakh units 13 14 7.7Microwaves Lakh units 2.25 2.85 26.67

CONSUMER ELECTRONICS

ITEM UNITS 2004-05 2005-06 PERCENTAGEOF GROWTH

Value overall Rs. Crore 13433.6 14500 8Color Televisions Lakh Units 67.5 80 18.51Color Televisions(CTV)

Rs. Crore 6495.6 7000 7.77

B&W TVs Lakh Units 35 30 -14.3B&W TVs Rs. Crore 643.4 482.55 -25VCDs/DVDs Million

Units7 7.2 2.9

VCDs/DVDs Rs. Crore 816.6 1633.2 100Watches Lakh Units 187 206 10Clocks Lakh Units 286 309 8ELECTRONIC COMPONENTSOverall production value

Rs. Crore 6332 7535 19

Color picture tubes Million Units

7.3 9 23.3

Color tubes Rs. Crore 1446.4 1442.5 -0.3Video disk players-VCD/DVDs

Rs. Crore 816.6 1634 100

Audio equipment Rs. Crore 2264.1 2287 1.0Glass shells for picture tubes

Rs. Crore 472.8 550 16.3

Color Detection Components

Rs. Crore 170.8 175 2.3

PCB’s Rs. Crore 193.6 217 12Tape recorder components

Rs. Crore 186.7 212 13

Semi conductors Rs. Crore 322.2 320 -0.6Permanent magnets Rs. Crore 108 108 0

With prices of the picture tubes steadily declining, TVs are becoming more affordable. For differentiation of the products, manufacturers are upgrading technologies. Other equipment manufacturers (OEMs) play a major role. LG has OEM places at Kolkata, Patna, Jaipur, Mohali, Bhopal, Nasik and Himachal Pradesh. OEMs contribute significantly to LG’s total CTV Production.

ELECTRONIC COMPONENT Most of the component production in India is driven by demand generated by the local consumer durables industry, especially B&W TVs, CTVs, Tape- Recorders and other low end consumer products. Audio equipment occupy the largest share at 30.5 percent, followed by video disk players (VCDs and DVDs) at 21.7 percent, color picture tubes (CPTs) at 19.2 percent, and semiconductors and other components.

TABLE-II

PROJECTED GROWTH IN PRODUCTION OF CONSUMER DURABLES

SECTOR FIRST TWO QUARTERS(April –Sept.

2004-05) ACTUAL

FIRST TWO QUARTERS

(April-Sept.2005-06) PROJECTED

CONSUMER DURABLES/WHITE GOODSRefrigerators 5 12Air-Conditioners 12 25Washing Machines 6 7.8Microwave Ovens 25 25

CONSUMERELECTRONICSConsumer electronics overall 9 9Color Televisions (CTVs) -10 15Black &White TVs -20 -25VCDs/DVDs 10 30Clocks 10 10Watches 5 10ELECTRONICCOMPONENTSOver all Production value 18 19Color Picture Tubes (Volume) 20 25Color Picture Tubes (Value) -0.3 0.5Audio equipment (Value) -1.4 1.2VCDs and DVDs (Value) 1130 100 and aboveGlass Shells for Picture Tubes (Value) 17 16.18Color Detection Components(Value) 4 2.35PCBs (Value) 18 12.13Tape Recorder components 15 -0.5 to 0

SECTORAL ISSUES:

There are more than a dozen companies operating in the white goods segment, which is witnessing excess capacity build-up in ACs, Refrigerators and Washing Machines. As a result, supply will continue to outstrip affecting product prices.

The manufacturing capacity of the Indian Refrigerator industry is over 5 million units, where as sales are only 3.3 million units. Many Refrigerator manufacturers are operating at a capacity utilization of 50 to 60 per cent only. Also, there has been a considerable prices decrease in the Refrigerator market. On the other hand, material costs have grown significantly, which is a concern for Refrigerator manufacturers.

While foreign companies have been looking at the low-end Refrigerators for entry in our domestic market, the growth levels in the Refrigerator industry so far have not been very promising. This is because the purchasing power of the first-time Refrigerator buyer is still below his capacity to pay for owning a Refrigerator. Unless income levels and availability of financing options improve, along with substantial price reductions of Refrigerators, the growth in the Refrigerator market would remain in the single-digit figure.

Replacement demand, thought yet to pick up, will drive growth in higher-end segments like frost-free Refrigerators. Brand building through advertising and promotion will also contribute to the growth of the Refrigerator market.

There are several reasons for the smaller market of washing machines in India. One is the relative cheapness and ready availability of domestic help in India- it is cheaper to wash clothes manually. For the same reason, many housewives in less affluent households rather than invest in washing machines. Water scarcity in many Indian cities and timely availability are other major issues.

Sales of microwaves have been restricted to the hospitality industry (i.e. Hotels, Restaurants, Big Canteens, etc). Microwave sales have been slow to take off mainly because Indian housewives felt that Microwave ovens were not suitable for Indian cooking (a lot of which requires deep frying).

For example, Indian cuisine cooked in a Microwave loses its traditional look and taste. Hence, Microwave ovens are used in many households merely as a reheating device.

Also, they aren’t affordable for the average consumers. Microwave prices were very high when they were first launched in the 1990s because they were all imported and import duties were high. Import duties should be lowered to ensure affordability.

Penetration level of television in India is just 24 percent compared to 98 percent in China, 11 percent in Brazil, 235 percent in France, 250 percent in Japan and 333 percent in USA.

The basic components of a CTV account for more than 65 percent of the cost of the finished product. Higher customs duty on CPTs gives local CPT manufacturers unnecessary protection, putting pressure on margins.

OPPORTUNITIES AND PROJECTION

Consumer goods are poised for further growth because of the emerging opportunities and string fundamentals developing in the economy. If some of the basic issues pertaining to each individual sector are properly set right, the growth and development of the consumer durable goods sector may help the overall economic development of country. The rise in growth rate of gross domestic product (GDP), growth in disposable income and improved lifestyles would provide constant impetus to the growth of the white goods industry.

Penetration of consumer durables would be deeper in rural India if banks and financial institutions come out with liberal incentive schemes for the white goods industry. While the consumer durables market is facing a slowdown due to saturation in the urban market, rural consumers should be provided with easily payable consumer finance schemes. There is need for ensuring proper after-sales services and amenities like electricity for better penetration.

Rural India, which accounts for nearly 70 percent of the total number of households, has a 2 percent penetration in case of Refrigerators and 0.5 percent for washing machines. Therefore it offers plenty of scope and opportunities for the white goods industry. The rural market is growing faster than the urban India. The urban market is becoming more of a replacement and up gradation market now.

The increasing popularity of easily available consumer loans and the expansion of hire-purchase schemes will give a moral boost to the price sensitive

consumers. The attractive schemes of financial institutions and commercial banks are increasingly becoming suitable for the consumer. Consumer goods companies are themselves coming out with attractive financing schemes to consumers through their extensive dealer network. This has a direct bearing on the future demand.

Reduction in import duties may significantly lower the prices of such products as microwave ovens, whose market share is quite small in India. Otherwise, local manufacturing will continue to stay competitive. At the same time, there will be some positive benefits in the form of reduction in input costs. Washing machines and Refrigerators will also benefit from lower input costs.

SEGMENT WISE STRATEGIES AND PROJECTIOIN

Domestic AC manufacturers should plan to beef up their distribution and service networks, while MNCs would leverage on their brands and invest in high-powered advertising. As running costs of consumer durables including the ACs are very high, manufacturers should plan to introduce energy-saving models in future.

To overcome pressure on pricing, companies are in the process of balancing marketing strategies in different ways to become competitive. LG, VOLTAS and WHIRLPOOL are going aggressively on mass-volumes segment, while ELECTROLUX and SAMSUNG are concentrating on product innovation.

Whirlpool is focusing on volumes. Voltas is attaching importance to the affordability factor and pushing the newly launched models in the urban markets, small institutional areas and rural markets. SAMSUNG and ELECTROLUX are focusing on new product development.

There will be an increasing demand for ACs from commercial segments and services sectors including banking, software, entertainment, construction, health car and restaurants. The increasing familiarity and exposure to various uses of ACs in cars, shopping and houses will also upsurge the demand.

Refrigerators also have good potential for growth in view of low penetration levels. Manufacturers are in the process of launching new models. New advertising campaigns are running both in the electronic and print media, and there are also exciting sales promotion schemes.

The penetration of Washing machines will rise by more than 6 percent with in two years. Major growth is projected to take place in the fully automatic machines are gaining popularity with the change in lifestyles of consumers, increase in income and increase in number of working couples.

Indian women are increasingly coming to accept the convenience offered by Microwave ovens and their ability to cook many Indian dishes quickly. A sharp drop in prices helped by local manufacturing has also helped to boost sales. Microwave oven makes expect sales to continue to grow at a rapid pace in the next few years in the liberalized policy environment.

With the changing lifestyles, affordability and cosmopolitan food habits, the Microwave oven market is expected to grow at 25 percent per annum and also in the first two quarters of 2004-05.

In the product differentiation drive, VIDEOCON has introduced seven models against two in 21-inch CTVs. Against one base model of 29-inch CTV, it

has launched three models. The company has tied with USA-based Television to launch Internet T.V. It is now concentrating on larger-size CTVs.

The flat TV market in India would reach 1.8 million units and in the next few years, it would account for about 50 percent of the Indian CTV market.SOURCE:FICCI. The findings are based on the estimates made by the industry and interaction with the concerned representatives in the industry.

SAMSUNG LAUNCHES DIGIT ALL HOPE CONSUMER CAMPAIGN

Digital technology leader Samsung Indian Electronics Indian Electronics has announced the nationwide roll-out of Samsung Digit All Hop Consumer Campaign. The program is an extension of Samsung’s corporate social responsibility program Samsung Digit All Hop Campaign will run until 31st

January 2005. As per this program, for every Samsung product purchased by a customer anywhere across the country, a part of the money will be donated by Samsung to the Digit All Hop Fund. The Samsung Digit All Hope program, is the company’s social initiative. This program supports organizations that promote the use of technology to improve the lives of youth, empower then and Help Bridge the digital divide. This campaign would truly make Samsung Digit All Hop, a contribution from the entire Samsung family.

VIDEOCON PROFILE

The Videocon group emerges as a USD 2.5 Billion global conglomerate continuing to set trends in every sphere of its activities from a conference room sized assembly line in 1979.

Today the group operates through 4 key sectors:

Consumer Durables Thomson CPT CRT Glass Oil & Gas

Consumer Electronics, Home Appliances & Compressor manufacturing in India

Videocon enjoy a pre-eminent position in terms of sales and customer satisfaction in many of our consumer products like Color Televisions, Washing Machines, Air Conditioners, Refrigerators, Microwave ovens and many other home appliances, selling them through a Multi-Brand strategy with the largest sales and service network in India. Refrigerator manufacturing is further supported by our in compressor manufacturing technology in Bangalore.

Display industry and its componentsWith the Thomson acquisition Videocon has emerged as one of the

largest Color Picture tube manufacturers in the world operating in Mexico, Italy, Poland and China, continuing to lead through new innovative technologies like slim CPT, extra slim CPT and High Definition 16:9 formats CPT

Color Picture Tube GlassVideocon is one of the largest CPT Glass manufacturers in the world

with a high level of experience and technical expertise operating through Poland and India. Videocon will leverage on this synergy after the Thomson acquisition to

internally source glass for its CPT manufacturing increasing efficiencies and lowering costs.

Oil and GasAn important asset for the group is its Ravva oil field with one of the

lowest operating costs in the world producing 50,000 barrels of oil per day. The group has ambitious plans for expansion in this sector globally.

Logo LogicThis is the new Videocon symbol. It reiterates the ethos of a company

dedicated to maintaining the highest international standards of excellence through quality, technology and innovation. For over a decade now, Videocon has been bringing the latest and very best in Consumer Electronics and Home Appliances. Successfully adapting the best of international technology to suit Indian needs, and crafting it to improve the quality of life as million of satisfied customers will agree.

The new symbol of Videocon asserts its passion for global impact, and the two ‘E’s on either side represent the Group’s wide spectrum of interests ranging from ‘Electronics to Energy’. Along with the steely glint, this communicates the Group’s global ambition, its strength, sterling credentials and innovative drive.

A symbol that proclaims a paradigm shift. A sign that represents the new force that is Videocon. Thus recapitulating our principle of reaching out and touching the lives of millions of people worldwide.

HISTORY:

Shri. Nandlal Madhavlal Dhoot. Founder, The Videocon Group

(26 February 1932 - 26 April 1993)

In early 80's Nandlalji initiated his three sons - Venugopal, Rajkumar and Pradeep into business. Through a technical tie up with Toshiba Corporation of Japan, he launched India's first world-class color Television: Videocon. Today, Videocon is household name across the nation- India's No. 1 brand of Consumer Electronics & Home Appliances, trusted by over 50 million people to improve their quality of life.

In year 1987 VIDEOCON has introduced its color & B/W television, in the same year they also came with washing machines.

In year 1989-90 they had introduced home theater, electric motor and AC’s.

In year 1991 they came with refrigerators and coolers.

In year 1995 introduced glass shell for picture tube this was the first time they came in picture tube business.

In year 1996 they came in Kitchen appliance and crude oil business.

In year 1998 they enter in compressor and compressor motor business.

In year 2000 they take over the Philips Picture tube plant.

In year 2005 VIDEOCON has taken over Thomson picture tube Plant in same year they had taken over three Electrolux Kelvinator plant in India.

In year 2006 they introduced slim trim television in India.

Brand Basket

Tie-ups with Global Leaders

Partner Product Nature Of Tie-Up

Samsung Electronics Fly Back

Transformers, Tuners

Technical Support

Matsushita Electric Washing Machine Technical * Collaboration

Matsushita Electric Air Conditioner Design & Drawing

Matsushita Electric Refrigerator Design & Drawing

Sansui Electric Co. Ltd Audio Products

and Color TV

ODM for Indian Market

Techneglas Glass Shell Technical Collaboration

Akai Audio Products

and Color TV

ODM for Indian Market

Hyundai Color TV ODM for Indian Market

Electrolux AB Sweden Refrigerator,

Air Conditioner and

Washing Machine

1.ODM & Indian Market

2.Sourcing of components for

Global Market

3.ODM for Global market

Board of Directors:

Mr. Venugopal N. Dhoot ……………………….. Chairman & Managing Director

Mr. Pradeepkumar N. Dhoot …………………..... Whole time – Director

Mr. S. K. Shelgikar

Mr. Kuldeep Drabu

Mr. S. Padmanabhan

Mr. S. C. N. Jatar

Mr. A.L. Bongirwar

Mr. S.P.Talwar

Mr. Didier Trutt ………………………………….. Nominee - Thomson S.A.

Mr. Claes Johan Bygge …………………………… Nominee - AB Electrolux

Mr. Ajay Saraf ……………………………………. Nominee - ICICI Bank Ltd.

Mr. M. Chittaranjan Kumar ……………………… Nominee - IDBI Bank Ltd.

Vision & Mission

Videocon’s mission: a reflection of continuity and change

Videocon’s mission expression has been crafted to envelope both extant and emerging realities:

“To delight and deliver beyond expectation through ingenious strategy, intrepid entrepreneurship, improved technology, innovative products, insightful marketing and inspired thinking about the future.”

A breakdown of the statement above reveals a ‘means and end’ approach, where the end is articulated at the beginning with the means linked to it.

“To delight and deliver beyond expectation…”: the end

This segment not only underlines the importance of the ultimate goal - customer satisfaction (‘delight’) and ultimate target - the customer, but also of intermediate processes and principals, which have contributed to building a robust, dependable Videocon value chain (‘deliver’). As a result of its focus on developing loyal customers and reliable associates, Videocon is able to exceed expectations.

“…through ingenious strategy…”: the means

In the cutthroat world of today, it is only by taking recourse to advance planning and strategy that a business can hope to survive. Although textbook strategy has its uses, reproducing it in verbatim for the real world would be foolish because of the absence of textbook conditions. Thus, there is a need for a bounded rationality, spontaneity and improvisation that is flexible enough for scenarios both imaginable and unimaginable. Videocon’s ingenious man oeuvres are actually flexi-strategy that abstracts from shifting ground conditions and decides game-plans, or sometimes changes the rules of the game.

“…intrepid entrepreneurship…”: the means

An enterprise with the odds stacked against it makes great business sense. This is because higher the obstacles, lower the number of players likely to be active in that field - thus, fetching extraordinary returns. The only requirement is a bold and confident attitude willing to brave the odds. Videocon’s foray into oil and gas is a bold and intrepid endeavour that arises from immense faith on the surefooted competence of the company’s in-house managerial talent.

“…improved technology…”: the means

Technology is no more a premium input; it has become the bare minimum in recent years. Rapid advances have only fuelled this phenomenon. Videocon is extremely vigilant in shunting out dated technology and replacing it with the best-in-class offers of the times.

“…innovative products…”: the means

Product development, innovation and customization are the tools Videocon uses to stay ahead of the competition. This is because a continuous stream of innovative products excites the market and enhances brand recall. A strategy that Videocon banks on a lot, especially on the domestic front.

“…insightful marketing…”: the means

The market share battle scene has long shifted from technology and processes to the psyche of the customer. This means that those with deeper insights into the elusive mind of the buyer are likely to dominate. Videocon is reinforcing marketing strengths to read better the pulse of the market and help create products that map perfectly into customer preferences.

“…inspired thinking about the future.”: the means

The future is unpredictable, but not doing anything about it is fraught with grave risk. Videocon extrapolates future trends on the basis of current changes in technology and preferences as well as sheer gut feel. Fine-tuned business instincts are worth their weight in gold, lots of it. The company has perfected its practice almost into an art form with some calculated gambles like oil and gas proving to be absolute money-spinners.

Values & Philosophy

Shri Nandlal Madhavlal Dhoot, the founder of the Videocon Group, completed his education in Ahmednagar and Pune. He was a successful sugarcane and cotton cultivator. As a next logical step to vertical integration, he boldly took upon an entrepreneurial venture by importing machinery from Europe to set up the Gangapur Sakhar Karkhana (Sugar Mill) in 1955. Those were the times when the village did not even have electricity. Thus was unleashed an Industrial Revolution.The die was cast. Over the years, Nandlalji’s path-breaking attitude found expression in a myriad ways, earnings him the well-deserved reputation of industrial activity in Marathwada India.

In early 80's Nandlalji initiated his three sons - Venugopal, Rajkumar and Pradeep into business. Through a technical tie up with Toshiba Corporation of Japan, he launched India's first world-class color Television: Videocon. Today, Videocon is household name across the nation- India's No. 1 brand of Consumer Electronics & Home Appliances, trusted by over 50 million people to improve their quality of life.

Social Commitments:

Philosophy & Resolve

No business can function in a vacuum. There is the society at large with which it engages in innumerable transactions; the more involved the engagement, the better its qualitative and quantitative effect on the business. Aware of this debt to society, a successful corporate like Videocon is committed to fulfilling its obligations: both as providers of outstanding products as well as sterling community initiatives.

They include, among others, a first-rate academic haven for the high-school education of underprivileged girls and a 100% world-class, charitable hospital specializing in cancer and heart surgery for the benefit of society’s marginalized sections. Videocon’s deep-rooted commitment to environment conservation translates into process improvements that help recycle CRT glass, curb carbon emissions and other pollutants. Among others, the group’s India glass plant has supported a large-scale initiative like the plantation of over 2,00,000 teak trees.

Apart from material support, society needs spirit; that vital ingredient that makes the difference between living life and merely existing. Videocon is inspired heavily by the uplifting nature of sports; its power to generate mass passion, where innumerable hearts throb as in unison; its ability to draw people together irrespective of differences in race, religion, gender or caste. Unity of spirit and purpose is ultimately what builds bridges between diverse cultures. This is the core belief of a group that has operations spread over a cross-cultural milieu worldwide. Videocon supports mass sports for another reason: at the heart of sports is fair play, a virtue that enjoys exalted status among values cherished by Videocon.

The group’s sponsorship of cricketing events across the globe underlies its commitment and passion for sports as well as its goal to uplift the spirits of a global audience. Videocon has not forgotten the grassroots either; the Videocon School of Cricket launched in Kolkata under the guidance of former India captain, Saurav Ganguly, aims to inspire budding cricketers in the age group of 10 to 17 years to greater heights.

Employee Contribution

Videocon believes its most valuable capital is its people. Nurturing their personal growth is tantamount to building the group's future.

As the group enlarges to envelope people from diverse social and cultural backgrounds, creating opportunities of exchange, learning and exposure to a unique corporate ethos is becoming extremely important.

Videocon's main training centre in India is supplemented by other learning resources strategically located around the globe. These offer advanced programs designed to develop management and operational skills.

Result-oriented seminars on varied topics and workshops by world-famous motivators encourage people to expand their potential. These initiatives inspire them to develop their creativity, thus helping build capable professionals and responsible members of society.

From 4th March 2005 to 12th March 2005 we celebrated safety week and organized slogan competition, poster competition, and essay writing competition. The prize distribution function was held at Vivekananda hall and the prizes were awarded by Mr. S Nabar, Mr. Shenoy R. G, Mr. Vinay Lambay.

Hospital

In the memory of our founder Videocon runs a world class hospital with the latest equipments, MRI, CT scan machines run by dedicated doctors specializing in Cancer and heart surgery. The hospital is 100% charitable and caters to the people in Indian villages which cannot even support their families let alone afford medicines.

To pay homage to our beloved chairman late SHRI NANDALALJI DHOOT / (KAKASAHEB) we have arrange Bhajan program & blood donation on date 26th April every year. Most of our employees participate in blood donation camp. In

year 2004 & 2005 90 to 110 employees have donated blood. The blood donation camp is arranged at our Dhoot Hospital Blood Bank.

Schools

The group runs a world class school dreamt by our LATE founder in the village of Gangapur, dedicated to giving high quality high school education to underprivileged girls inspiring them to aim higher and work for the development of the country.

Creative quality circle team won manufacturing trophy for excellence case study in 3rd convention held at Jawaharlal Nehru Engineering College Aurangabad and distinguished award in 17th National Convention at Madurai between 04/12/2003 to 07/12/2003.

BHARARI Team won distinguished award in 3rd convention of at Jawaharlal Nehru Engineering College Aurangabad and also won excellence award in 17th national convention at Madurai between 04/12/2003 to 07/12/2003.

Best of the best trophy in mini convention at Jawaharlal Engineering Collage on 17/02/2005.

MANTHAN: QC team IGQA Dept won distinguished award in 18th national convention held at Ruparel College from 27/12/2004 to 30/12/2005.

Charities

To pay homage to our beloved chairman late SHRI NANDALALJI DHOOT / (KAKASAHEB) we have arrange Bhajan program & blood donation on date 26th April every year. Most of our employees participate in blood donation camp. In year 2004 & 2005 90 to 110 employees have donated blood. The blood donation camp is arranged at our Dhoot Hospital Blood Bank.

Cricket

The Videocon School of cricket was launched in Kolkata to train budding talent in the age group of 10 to 17. The academy has been undertaken in cooperation with the captain of the Indian cricket team, Saurav Ganguly, who has been designated Chief Coach. It aims to put about 700 students through the paces every year.

Sponsorship of cricketing events across the globe underlies Videocon's commitment and passion for sports as well as its goal to connect with a global audience.

Sponsorship

Videocon is inspired heavily by the uplifting values perpetuated by sports. Its ability to draw people together irrespective of differences in race, gender, religion and country. Unity of spirit and purpose is ultimately what builds bridges between diverse cultures. This is the core belief of a group that today has operations spread over a cross-cultural milieu worldwide. Also, at the heart of sports is fair play, a virtue which enjoys exalted status among values cherished by Videocon.

The group has been deeply involved in supporting sports. Its sponsorship of cricketing events across the globe underlies its commitment and passion for sports as well as its goal to connect with a global audience.

It is a matter of pride that Videocon's Audio Visual products entertain enthusiasts and fans passionate about watching sports worldwide.

Energy Conservation

The Company consistently pursues reduction in energy consumption in its manufacturing process on an ongoing basis.

An overall awareness has been created among the employees/workers to avoid wastage of water and power by shutting the power off when not in use.

A parameter has been developed in office atmosphere to shut power off for some part of day so as to take up manual work and complete the manual activity during that part of the day. The lighting fixture in the administrative areas has been optimized. A Quality team has been appointed to closely monitor the consumption of fuel and lying emphasis on non-conventional energy sources.

The group takes environment conservation seriously. It is working to equip its facilities with methods that help recycle CRT glass, curb carbon emissions and other pollutants. Videocon's India glass plant has supported plantation of over 2,00,000 teak trees.

R & D

The company gives utmost importance to the R & D activities, which are carried out, at in-house R & D center. The company carries on new innovations in product development, cost reduction, quality improvement, process implementations, process controls.

1) Specific areas in which R&D is carried out by the company

During the year, the company has carried out Research and Development in the following areas.

Home theaters - High-end models and HTIB Models. Larger Screen Television i.e. 32 inch and 38inch. True Flat Televisions Plasma Televisions Cosmetic design and new out look to the TVs Manufacturing of components for CTV, Refrigerators and Air conditioners. Efforts to reduce power consumption of all its final products.

2) Benefits derived as a result of the above R&D.

The company has derived the following benefits as a result of the Research and Development:

Development of new design in product and launch of various new models.

Able to compete with the foreign players in the Indian Markets by cost reductions and offering innovation features and to maintain market leadership in Television under Videocon umbrella.

Increase in Productivity. Reduction in power consumption of some of the products.

3) Future Plans of action

In the coming days company is aiming to achieve development in the following areas through Research & Development:

Manufacturing of components for consumer Electronics Products. Multimedia TV. Plasma Televisions. Launching of New Brands & Sub-brands under Videocon umbrella. Composite Home Entertainment system with internet adaptability. To work on better features, better quality & improved reliability with

reduced/low prices.

Your company always attempts to use the latest and advanced technology in production process. Keeping pace with the technological developments, the company keeps on adding sophisticated equipments with focus on automation to minimize manual intervention in the manufacturing process thereby ensuring quality of the final products.

CEO Message

“This year marks a milestone in the history of Videocon with the acquisition of the complete Color Picture Tube operations of the Thomson group and the Indian operations of AB Electrolux, Sweden. Further subscribing to their faith in Videocon, Thomson and Electrolux bought about 15% and 5% stake respectively in Videocon Industries Ltd., our flagship company having a market capitalisation of around USD 2.5 billion.

The group today is one of the largest manufacturers of Color Picture Tubes and Glass shells from state of the art units in Mexico, Italy, Poland, India and China which form the backbone of many Color Television manufacturers around the

world.

Our Oil & Gas operations contribute to India’s ever growing demand for energy and developmental needs.

Our strategy continues to drive the fast changes in the technology and markets, but our foundations remain rock-solid. These directives are value systems that nurture the growth and the progression of the corporate, essayed by a multi-stage process consisting of pruning of the business portfolio and management processes, identifying new business opportunities and creating innovative products, keeping in tune with changing needs and adapting to its demands.

Videocon group is more ready than ever for further expansion and serving to continue spreading happiness to millions of people around the world through its products.”

Future Plans

The Future is here

To strengthen and maintain & its leadership status, the Videocon group has clearly charted out its course for the future. Aggressive development is in full swing at the R & D Centers to bring out state-of-the-art technologies including True Flat, Slim, Extra Slim, Plasma & LCDs, at the earliest.

Cost rationalization processes - are in various stages - including rationalizing factories in Europe, increasing automation and improvement of efficiency in China, accessing flass shells from India for international CPT facilities and a lot more - are in various stages of implementation.

Internationally all existing client relationships are being strengthened. The cost competitiveness and increase in capacity in Mexico and Poland has opened up big opportunities in the OEM business.

Last but not the least, in the domestic market consolidation with multiple brands paves the way for an unassailable lead in the market.

In the Oil & Gas business, having all the basic operator capabilities of a prospecting entity, the group is looking to add more explorations and production depth as also oil bearing assets. The group will also get into gas distribution in India significantly.

Code of Conduct

I. Need and objective of the Code

Clause 49 of the Listing Agreement entered into with the Stock Exchanges, requires that as part of Corporate Governance, the listed entities shall lay down a Code of Conduct for Directors on the Board and the Senior Management of the Entity.

Accordingly, the Board has laid down this Code for its Directors on the Board and the Senior Management.

Applicability

The Code of Conduct is applicable to the members of Board of Directors and Members of the Senior Management Team of the Company, one level below Whole Time Director, viz. Business Heads, Unit Heads, Presidents, Joint Presidents and all other executives having similar or equivalent rank in the Company by whatever designation and the Company Secretary of the Company (hereinafter referred to as "Senior Management"). The applicability to the Board of Directors and/or the Senior Management will depend on context of Code of Conduct.

The Company Secretary shall be the Compliance Officer for the purpose of this Code.

The Code shall come into force with effect from 1st January 2006 and future amendments / modifications shall take effect from the date stated therein.

II. Companies Belief System

This Code of Conduct attempts to set forth the guiding principles on which the Company shall operate and conduct its routine activities and daily business with its stakeholders, government and other regulatory agencies, media as also anyone else with whom it is connected. It recognizes that the Company and more particularly, the Board is a trustee and custodian of stakeholders and in order to fulfill its fiduciary obligations and responsibilities, it has to maintain and continue to enjoy the trust and confidence of the stakeholders and also of overall public at large.

The Company acknowledges the need to uphold the integrity in every transaction and activity it enters into and believes that honesty and integrity in its internal conduct would be judged by its external behavior.

The Company shall be committed in all its actions to the interest of the countries in which it operates. The Company is conscious of the reputation it carries amongst its stakeholders, customers and public at large and shall endeavor to do all it can to sustain and improve upon the same in its discharge of obligations. The Company shall continue to initiate policies, which are customer centric and which promote prudence.

III. Philosophy of the Code

The Code envisages and expects:

a. Adherence to the highest standards of transparent and ethical conduct, including proper and ethical procedures in dealing with actual or apparent conflicts of interest between personal and professional relationships.

b. Full, fair, accurate, sensible, timely and meaningful disclosures in the periodic reports required to be filed by the Company with government and regulatory agencies.

c. Compliance with applicable laws, rules and regulations.

d. To address misuse or misapplication of the Company’s assets and resources;

e. The highest level of confidentiality and fair dealing within and outside the

Company

f. Transparent process of decision making at every level of Management.

g. Fair and equitable treatment and accountability to all the stakeholders including customers, shareholders, employees and society at large.

h. Negative ethos to be defined precisely “what we shall not do”.

a. Violate local laws in spirit.b. Dilute moral standards.c. Engage in unethical practices d. Engage with anti social elements

A. General Standards of Conduct

The Company expects all Directors and the Senior Management to exercise good judgment, to ensure the interests, safety and welfare of customers, dealers, employees, and other stakeholders and to maintain a co-operative, efficient, positive, harmonious and productive work environment and business organization. The Directors and the Senior Management while discharging duties of their office must act honestly and with due diligence. They are expected to act with that amount of utmost care and prudence, which an ordinary person is expected to take in his/her own business. These standards need to be applied while working in the premises of the Company, at off-site locations where the business is being conducted whether in India or abroad, at Company-Sponsored business and social events, or at any other place whether they act as representatives of the Company.

The Company expects all Directors and the Senior Management to:

a. Maintain and help the Company in maintaining highest degree of Corporate Governance Practices.

b. Shall not communicate with any member of press or publicity media or any other outside agency on matters concerning the Company, except through the designated spokepersons or otherwise authorized.

c. Shall ensure compliance with SEBI (Prohibition of Insider Trading) Regulations,

1992 as also other regulations as may be applicable from time to time.

d. Shall affirm compliance with this Code on an annual basis as at the end of the each financial year of the Company within 7 days.

B. Conflict of Interest

A "conflict of interest' occurs when personal interest of any member of the Board of Directors or the Senior Management interferes or appears to interfere in any way with the interest of the Company. Every member of the Board of Directors and the Senior Management has responsibility to the Company, its stakeholders and to each other. Although this duty does not prevent them from engaging in personal transactions and investments, it does demand that they avoid situations where conflict of interest might occur or appear to occur. They are expected to perform their duties in a way that they do not conflict with the Company's interest such as-

Involvement/Interference – The Non-Executive Directors and the Senior Management are expected to devote their attention to the business interest of the Company. They are prohibited from engaging in any activity that interferes with their performance or responsibilities to the Company or otherwise is in conflict with or prejudicial to the Company.

Business Interests – If any member of the Board of Directors or the Senior Management considers investing in securities issued by the Company’s customer, supplier or competitor, they should ensure that these investments do not compromise their responsibilities to the Company. Many factors including the size and nature of the investment; their ability to influence the Company’s decisions, their access to confidential information of the Company, or of the other entity, and the nature of the relationship between the Company and the customer, supplier or competitor should be considered in determining whether a conflict exists. Additionally, they should disclose to the Company any interest that they have which may conflict with business of the Company.

Related Parties – As a general rule, the Directors and the Senior Management should avoid conducting Company’s business with a relative or any other person or a firm, Company, Association in which the relative or other person is associated in any significant role. Relatives shall include:

o Spouseo Father o Mother (including step-mother)o Son (including step-son)o Son’s wifeo Daughter (including step-daughter)o Father’s fathero Father’s mothero Mother’s mothero Mother’s fathero Son’s sono Son’s son’s wifeo Son’s daughtero Son’s daughter husbando Daughter’s husbando Daughter’s sono Daughter’s son’s wifeo Daughter’s daughtero Daughter’s daughter’s husbando Brother (including step-brother)o Brother’s wifeo Sister (including step-sister)o Sister’s husband

If such a related party transaction is unavoidable, they must fully disclose the nature of the related party transactions to the Board. Any dealings with a related party must be conducted in such a way that no preferential treatment is given to that party.

In case of any other transaction or situation giving rise to conflicts of interests, details of the same shall be promptly informed to the Board and the Board should, after due deliberations, decide on its impact.

C. Applicable Laws

The Directors and the Senior Management of the Company must comply with applicable laws, regulations, rules and regulatory orders. They should report compliance and any inadvertent non-compliance, if detected subsequently to the Board and the concerned authorities.

D. Disclosure Standards

The Company shall make full, fair, accurate, timely and meaningful disclosures in the periodic reports required to be filed with Government and Regulatory agencies. The Directors and the Senior Management of the Company shall initiate all actions deemed necessary for proper dissemination of relevant information to the Board of Directors, Auditors and other Statutory Agencies, as may be required by applicable laws, rules and regulations.

E. Use of Company’s Assets and Resources:

Each member of the Board of Directors and the Senior Management has a duty to the Company to intimate in advance its interests while dealing with the Company’s assets and resources. Members of the Board of Directors and the Senior Management are prohibited from:

Using corporate property, information or position for personal gain.

Soliciting, demanding, accepting, or agreeing to accept anything of value from any person while dealing with the Company’s assets and resources.

Acting on behalf of the Company in any transaction in which they or any of their relative(s) have a significant direct or indirect interest.

F. Confidentiality and Fair Dealings

1. Company's Confidential Information.

· The Company’s confidential information is a valuable asset. It includes all the trade related information, trade secrets, confidential and privileged information, customer information, employee related information, strategies, research in connection with the Company and commercial, legal, scientific, technical data that are either provided to or made available to each member of the Board of Directors or the Senior Management by the Company either in paper or in electronic form to facilitate their work or that they are able to know or obtain access by virtue of their position with the Company. All confidential information must be used for Company’s business purpose only.

This responsibility includes the safeguarding, securing, and proper disposal of confidential information in accordance with the Company’s policy on maintaining and managing records. This obligation extends to confidential information of third parties, which the Company has rightfully received under non – disclosure agreements.

To further the Company’s business, confidential information may have to be disclosed to the potential business partners. Such disclosure should be made after considering its potential benefits and risks. Care should be taken to divulge the most sensitive information, only after the said business partner has signed Confidentiality agreement with the Company.

Any Publication or publicly made statement that might be perceived or construed as attributable to the Company, made outside the scope of any appropriate authority in the Company, should include a disclaimer that the publication or statement represents the views of the specific individual and not the Company.

2. Other confidential Information –

The Company has many kinds of business relationships with many companies and individuals. Sometimes, they will volunteer confidential information about their products or business plans to induce Company to enter into a business relationship. At other times, the Company may request that the third party provide confidential information to permit the Company to evaluate a potential business relationship with that party. Therefore special care must be taken by the Board of Directors to handle the confidential Information of other responsibly. Such confidential information should be handled in accordance with the agreements with the third parties.

Directors shall not accept any offer, payment, promise to pay, Gift, or anything of value from customers, suppliers, shareholders/stakeholders, etc. that is perceived as intended, directly or indirectly to influence any business decision, any act or failure to act, any commission of fraud, or opportunity for the commission of any fraud.

IV. Good Corporate Governance practices

Each Member of the Board of Directors of the Company should adhere to the following so as to ensure compliance with good corporate governance practices.

(a) Do’s

Attend Board meetings regularly and participate in the deliberations and discussions effectively.

Study the Board papers thoroughl y and enquire about follow – up reports on definite time schedule. Involve effectively in the matter of formulation of general policies. Be familiar with the broad objective of the Company and the policies laid

down by the government and the various laws and legislations. Ensure confidentiality of the Company’s agenda papers, notes and minutes.

(b) Don’ts

Do not reveal any information relating to any constituent of the Company to anyone

Do not do anything, which will interfere with and /or be subversive of maintenance of discipline, good conduct and integrity of the staff.

V. Waivers

Any waiver of any provision of this code of conduct for a member of the Company's Board of Directors and the Senior Management must be approved in writing by the Board of Directors of the Company.

The matters covered in this Code of Conduct are of utmost importance to the Company, its stakeholders and its business partners, and are essential to the Company's ability to conduct its business in accordance with its value system.

DEALER & CUSTOMER SURVEY:

    Survey is the most commonly used method of primary data collection in marketing research. This is widely used because of its extreme flexibility. Also, it is the most abused method because many surveys are conducted where questions

are biased or poorly stated, interviewers are poorly trained, or the sample interviewed is not really a representative of the population. 

    Survey research is a systematic gathering of data from respondents through questionnaires. The purpose of survey research is to facilitate understanding or enable prediction of some aspects of behavior of the population being surveyed. A questionnaire is a formal list of questions to be answered in the survey. Questionnaire may be administered by mail, telephone, or personal interview  

SURVEY TECHNIQUES: 

       Once the researcher has decided to use survey methods for collecting primary data, he should make a decision in connection with the techniques of survey or contact method, viz. personal interview, telephone survey, and mail survey. This can be done after evaluating each of these methods in view of the research project undertaken. The evaluation of survey techniques can be conducted by analyzing the advantages and disadvantages associated with each of these. In the ensuing text, we take up for discussion each of these techniques. 

Personal Interview: 

     In personal interview, the investigator questions the respondents in a face-to-face meeting. Personal interviews may be conducted on a door-to-door basis or in public places such as shopping centres.The usual approach for the interviewer is to identify himself to a potential respondent and attempt to secure the respondent’s co-operation in answering a list of predetermined questions. These answers may be tape-recorded or written down by the interviewer. Despite high cost, the personal interview can provide critical types of information on knowledge, intentions, demographic characteristics, attitudes, opinions, and life styles. In India, this method is very widely used and is considered as the most effective. 

Advantages: 

Main advantages associated with this survey techniques are:

1. It requires relatively shorter period of time to complete.

2. Researcher   can   procure   many   different   types   of information.

3. The amount of information procured on each aspect is larger

4. The results can be projected to the relevant universe with a greater degree of accuracy.

5. Because there is a personal interaction between the Investigator and the respondent(s), the data obtained are more reliable and valid. 

Disadvantages: 

Major disadvantages associated with the personal interview technique are:

1. The cost per completed interview is relatively higher as compared to other methods. 

2. The investigator may have to face relatively more difficulties in administering the interview schedule.

3. Respondents may not be available at their homes, give biased responses, or even refuse to co-operate with the investigator.

4. The investigators themselves may involve in cheating which is very difficult to detect.

5. Time required is more as compared to other survey methods. 

Telephone Survey: 

    In telephone survey, prospective respondents are telephoned, usually at homes, and asked to answer a series of questions over the telephone.

    This form of the survey technique has become more popular in recent years in advanced countries because more people are having telephones at their houses. In India, still this method does not find much use as many homes do not have personal telephone systems. 

Advantages: 

The telephone survey has advantages as follows:

1. It can be conducted at a lower cost as compared with personal interviews. 

2. The interviews can be completed very quickly. Thus, speed is the most significant advantage. 

3. Information of different types (on varying aspects) can be obtained. 

4 Telephone survey can be easily administered.

5. In this case also the results can be projected to a high degree of accuracy to the relevant universe. 

Disadvantages: 

Various disadvantages of telephone survey are as follows: 

1. The costs involved are higher than the mail questionnaire. 

2. The information on each aspect can be obtained to a limited extent. 

3 Visual aids cannot be used.  4. It is difficult to keep respondents on the phone for any length of time if the survey is not of keen interest to them. 

5. The universe covered is generally incomplete because only higher income people have telephones. 

6. Also the telephone directories which are used to select sample, might be obsolete. 

7. It is not possible for the investigator to validate the information obtained and has to accept interviewee’s word, particularly, on questions related to income, products owned, nature of residence, etc. The most effective way

to increase responses in phone surveys is to send a letter or card in advance notifying a person of the upcoming call and its general purpose. 

8. The increasing desire among people to protect their privacy and enhanced rate and number of crimes may greatly inhibit the use of telephone surveys.

Mail Survey: 

     The most common mode adopted in surveys is to mail to each of the potential respondents a questionnaire, complete with instructions and a self-ad dressed stamped envelope. In this case, no personal interaction occurs between the respondent and interviewer. Respondents fill out mailed questionnaires and return them duly filled in at their convenience.  

     Sometimes, mail questionnaires are distributed to the respondents by personal delivery or newspaper and magazine inserts but in most instances the entire process relies upon the mail system.  

     The mail interviews have received the greatest amount of attention in India where the two earlier methods are quite costly for a researcher. Also, the time needed by the previous methods is comparatively more. 

Advantages: 

The main advantages of mail survey are as follows:

1. If a proper mailing list is prepared, all potential sample respondents can be reached.

2. There is no scope of the interviewer’s bias to intrude in as the respondents are not influenced or inhibited by the presence of an interviewer. They are also more willing to answer somewhat personal questions. 

3. The mail survey is relatively an inexpensive way to obtain information, especially when the potential respondents are spread over a wide geographical area.

4. There is a possibility of more accurate reply because      the respondents fill up the questionnaires at their own leisure. 

Disadvantages 

Major disadvantages of the mail survey are as follows:

1. Because in no mail survey 100 per cent response is received. so the information may not represent the universe correctly. 

2. It takes a pretty long period to obtain the responses back from the respondents. Sometimes, continuous reminders may have to be issued to the respondents for getting the response. 

3. The mail survey has to use very structured questions and numbers of questions in the questionnaire have to be very limited. It may not be possible to tabulate answers if open-end questions are used. 

4. Bias may occur when the sample chosen to be surveyed is not really representative of the population. 

Follow-up in the form of reminders must be used to increase the response rate. Advance notification,  

     Preferably on telephone, is effective in increasing the speed and rate of response. Sponsorship by an official or respected agency, inclusion of stamped envelope, sending questionnaire by “special delivery” or “air mail” and inclusion of monetary incentives with the questionnaires are helpful in increasing the response rate. A major influence in obtaining a reasonable response to mail surveys is the quality of the accompanying cover letter. The cover letter should mention the purpose of survey, why the particular respondents have been chosen, and why they should participate. The sources of names most frequently used in marketing research in India are telephone directories, city directories, membership lists of

associations, and subscription lists of publications. This technique is also widely used by the Indian marketing researchers because of its cost advantage. 

  SELECTING A SURVEY TECHNIQUE 

     It depends upon the research project at hand that which of the three above-mentioned techniques of survey is the best. There is hardly any set rule to choose the best method yet; a careful evaluation of the following seven factors serves as the criteria for selection of such a technique. These seven factors are: (1) cost, (2) speed, (3) accuracy, (4) amount of data gathered, (5) response rate, (6) flexibility, and (7) control. Let us discuss each of these factors in the ensuing text. 

1. Cost 

     The cost of conducting a personal interview is higher as compared to telephone and mail surveys. The increased costs of personal interviews are due to high transportation expenses of the interviewer and time devoted on each of the interviews. These costs increase because the interviewer has to move door-to-door for contacting the respondents. From the cost point of view, the mail survey is judged as the best. The telephone survey involves more costs than mail survey. 

2. Speed 

  Considering the time period devoted by the investigators in getting the response, it is observed that the personal interviews consume maximum time. Also in the case of mail survey, the investigator has to wait for a longer time period for getting the response. But the speed of getting response is the highest in a case of telephone survey which can be conducted within a limited period of time from a single control room. Thus, speed wise telephone survey is the best survey technique.  

3. Accuracy

        There can be two kinds of inaccuracies which may creep into the gathered data. These are: (1) inaccuracies due to respondent’s bias, and (2) inaccuracies due to interviewer’s bias. The first type of inaccuracies may occur when the respondent is unwilling to co-operate in the interview and may consciously give biased replies. Replies to the same questions through personal

interviews and mail surveys may be different because the respondents may tend to bias the answers with regard to sensitive questions such as use of deodorants, drinking habits, use of credits, etc. This bias can be checked to a greater extent in personal interviews.  

       Also, in the case of mail surveys, the respondent may not be able to understand the question and misinterpret it while answering. Thus, the mail surveys are bound to be full of inaccuracies due to respondent’s misunderstanding and misinterpretation of questions. Most of the questions concerning prestige and living standards are answered in an affirmative manner in the case of mail surveys than in personal interviews. This inaccuracy can be minimized in the case of personal interviews. Also, in the case of telephone surveys an attempt can be made by the interviewer to reduce the inaccuracies clue to respondent. The interviewers are required to be well trained to reduce this type of inaccuracies. 

     There are inaccuracies which may occur due to interviewer’s conscious or unconscious misinterpretation, style or tone of posing the questions to respondents. Such type of inaccuracies may also occur due to interviewer’s intentional falsification of the interview results (cheating). These inaccuracies can be checked by training and motivating the interviewers after carefully recruiting and selecting them. An advance warning to investigators may prove to be better. The interviewers may be told in the beginning that their survey results will be checked by meeting some of the respondents. These types of inaccuracies are very common in the case of personal interviews. But there is no question of such inaccuracies in the case of mail surveys where personal interaction between re-spondent and interviewer is absent. 

  The summarize, both type of inaccuracies can be checked by carefully selecting, training, supervising and motivating the interviewers. 

4. Amount of Data Gathered 

     The telephone survey elicits minimum amount of information. Be-cause it is difficult to hold the respondent for more than five minutes on the telephone as it interferes with his/her home activities. The questions are required to be re-read and explained in telephone survey. In the case of mail survey, the amount of collected information is lesser because many people do not respond to follow-ups and reminders. Personal interview is certainly the best technique for eliciting maximum amount of information from respondents. This is because in a face-to-face meeting the respondents feel an obligation on their part to answer the

questions asked. The respondents may spare a longer period of time to answer the queries of interviewer due to personal interaction with the latter.  

5. Response Rate 

      Response rate is described as the percentage of planned interviews that are successfully completed. We can also describe it as the sample size divided by completed interviews. The non-response may occur due to: (I) not-at-homes, and (ii) refusals to co-operate.

      The response rate with different survey methods may vary from project to project. It may vary tremendously from 0 to 100 per cent. Generally, the response rate is the highest in the case of personal interviews. It is lesser in telephone surveys and the least in mail surveys. 

6. Flexibility 

       The personal interview technique is the most flexible. The inter-viewer in this case can rephrase the questions to make these understood to the respondents. The interviewer can also use both sight and hearing senses whereas only one sense can be used in the case of telephone and mail surveys. The length of interview can be varied at the discretion of interviewer in the case of personal interview. Thus, the personal interview is the most flexible approach whereas the mail survey is the least flexible one. 

7. Control 

     Sample control, interview control, and administrative control are the three important control aspects in surveys. The sample control means the control over sample members and degree to which the sample represents population. In the personal interview transportation and time costs are immense. The telephone survey also cannot give representation to lower and middle income classes of population, since they often do not have telephones. It is only the mail survey which holds the best for representing a universe neatly. But mailing lists must be updated to include new respondents and remove respondents who have migrated to other places. 

      The interview control means the researcher’s degree of control over the interview in progress. The mail survey proves to be the most ineffective whereas there can be very effective interview control in the case of personal

interview. In personal interview, the interviewer is in a face-to-face interaction with the respondent and can extract the maximum amount and accurate information by modifying certain questions and by establishing a better rapport with the respondent. 

            The administrative control refers to the degree of control of the research manager over the interviewer. Greater degree of control is possible in the case of telephone and mail surveys as compared to personal interviews.  Research manager knows that what questions are asked, in what sequence and whether these are really asked; in both telephone and mail surveys. But in personal interviews which are conducted in the field, the research manager cannot exercise his/her proper control over interviewer. He/she does not know clearly whether the interview is conducted properly or conducted at all. So the personal interview technique is the least controllable one from administrative control point of view.  

CONSUMER BEHAVIOUR

The term Consumer behavior refers to the behavior to the consumer display in searching for, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs. The study of consumer behavior is the study, how individuals make decisions to spend their available resource (Time, money & effort) on consumption related items. It includes the survey of what they buy, why they buy, when they buy, when to buy, how often to buy it and how often they use it. Consumer search goes on beyond their facts of consumer behavior and considers the use, consumers make of the goods they buy and their subsequent evaluation.

CUSTOMER: The term consumer is often used to describe the different binds of

consuming entities. The personal consumer buys the goods and services for his or her own use (either for the use of house hold or as a gift for a friend. In each of the contents the goods are bought for the final use buy individuals. Who are referred to as “end users” or “ultimate consumers”. The second category of consumer, the organizational consumer, encompasses for profit and not the profit business. Government agencies and institutions all of which must buy products, equipments and services in order to such their organizations. Despite the importance to both categories of consumers, who purchases for his or her own personal use or for

household use. End use consumption is perhaps the most pervasive of all consumer behavior for it involves every individual of every age and background in the role of buyer, user or both.

BUYERS AND USERS:The person who makes a product purchase is not always a user or the

purchaser necessarily the person who makes the products decisions.

Learning:The stimulus response theory states that there develops a bond

between behaviors producing stimulus and behaviors response. In terms of consumer behavior, as advertisement would be a stimulus and purchase would be responded.

Drive:Drive is any strong stimulus that implements actions; it arouses an

individual and keeps him prepared to respond.

Cue:Cue is object in the environment perceived by the individual. The aim

of marketing men is to bind out those conditions, trends which a stimulus or elicits response appropriate to his objective.

Response:Response is the awareness to the Cue drive. Response may be

generalized of discrinatory. General response refers to a uniform response to similar. Throughout incidental stimulus discrinatory response the relative response the similar stimulus.

Reinforcement:

Reinforcement or reward means reduction in drive and stimulus. It has been defined environment events exhibition the properly of occurrence of response they accompany. They which consumption of a product leads to satisfaction of the initiating the need then is reinforcement.

Motivation:

Motivation can be described as the driving force with in individuals that impels them to action. The driving force is produced by a state of tension, which exists as the result of an unfulfilled need. So markets should understand motivation theory and attempts to influence the consumer cognitive process.

SOCIALOGICAL DETERMINANTS:

Family:Family is primary group. The tastes like, dislike and life style of

persons are rooted in the family buying behaviors. Family may be nuclear or joint family. The influence on consumer buying behaviors may be of two joint families. First, on the individual personalities, attitudes and evaluate criteria and its influence on the decision making process involved in the purchase of goods/services. Different members in the family may be assigned or aware specific buying roles. The marketing should be identifying their members and their respective habits. Reference Groups:

Reference group is the kind of group used by an individual as point of reference of their own judgment, beliefs and behavior. After a person refers to the types of reference groups to build up his/her behavior pattern, these include

a) Group which serve as comparison points.b) Group which a person aspires to be a member.c) Group whose representation is assumed by the individual.

Social class:

Social class is relatively permanent and homogenous division in society into which individuals of families sharing similar values, life styles, interest and behaviors can be categorized. Class category is based on factors include income. Occupation authority power, ownership life style, consumption patterns, education etc, from markets stand point the class structure is irrelevant as it reflects the buying pattern of the consumer.

Culture:Culture consists of acquired or cultivated behavior and thoughts of

individuals with a society as well as the intellectual Artistic and social ideas and instructions. Which the members of the society refer and to which they strive. The influence of culture on consumer behavior is more enduring on account of the

factors. The job of the marketing manager is not only to identify the potential consumers but also the nature and intensity of the influence exerted by these factors.

OTHER DETERMINANTS:

Perception:Perception is defined as the process by which an individual selects,

organizes and interprets stimuli into a meaningful and coherent picture of the world. A stimulus is any unit of input to any of the senses.

Attitudes:Attitudes are the expression of inner feeling that reflects with in a

person favorably of unfavorably pre disposed to some objects because any they are outcome of psychological process. Attitudes are not directly observable, but must be inferred from what people say or what they do.

Importance of consumer behavior:The study of consumer behavior has assumed growing importance in

India, especially in the revised contest of economic reforms. Before we can influence the consumer, first we must understand what he/she as is in his/her mind. Mother buys toys and all the necessary things for her children’s (who are the user) they may buy the food for dinner (and is one of the users). Clearly, buyers are not always the users of the only users of the products they buy, nor they are necessarily the people who make the product selection decision. Marketers must decide at whom to direct their promotional efforts. For some products they must identify the person who is most likely to influence the decisions of some marketers. It is important for use to recognize why and how individuals make their consumption decisions, so that we can make better strategic marketing decisions if marketers understand the consumer behavior, they are able to predict that how consumers are likely to react to various informational and environment alcoves, and are able to shape their marketing strategies accordingly. Without doubt, marketer who under the consumer behavior have great competitive advantage in the market place.

As marketing researches began to study the buying behavior of consumers they soon realized that despite of some time (me too) approach to fads and fashions, many consumers reveled at using the identical products every one else used. Instead, they preferred differentiated products that they felt reflected their own special needs, personalities and life style.

CONSUMER BUYING PROCESS:The consumer is a decision maker, who solves his

consumption to achieve the satisfaction at his needs. Broadly the consumer buying process has there stages input, process output.

Input is a stimulus. It is provided by two sets stimulus variables, namely the firms marketing efforts are designed to positively expose. Inform and influence the consumer.

These efforts include product/service it self, advertising, price strategic, distribution market and intact all marketing functions. The social environment scenario as non-economical sources of consumer information and influence, which is not under the direct control of the firm; It includes reference groups and individuals, family members, Social class and caste, culture and the like. Both these stimulus variable influence the consumer and his/her buying process.

STAGES IN BUYING BEHAVIOR:The buying process is compared at a number of stages and is

influenced by an individual psychological frame work compared of the individual’s personality, motivation, perception and attitudes.

Need Recognition:It means the awareness for a want, desire of consumption problem

without whose satisfactions the consumer normally builds up tension.

Product awareness:The consumer is supposed to the existence of a product that may

satisfy a need. The awareness may be an account of the search carried by the consumer. Himself/Herself of firm’s communications through advertisement of salesmanship or through social environment.

Interest:It is the state of mind that exists when a consumer perceives and is

aware of alternative products capable of satisfying the need; consumer interest is indicated in the consumer’s willingness to sack information about the product.

Evaluation and Intention:

Once interest is a product is aroused. A consumer enters the subsequent stage of evaluation and intention. The evaluation stage to different, products/brands on the basis of accumulated stock of product information and drawn conclusion about the relative satisfaction, giving potential. After this the consumer develops intention either to purchase or to reject the product/Brand.

Output:It is the end result of the inputs of consumer behavior. It emerges after

their inputs are fully processed from the consumer output is a composed of purchase and post purchase behavior.

Purchase:Purchase is a consumer commitment for the product. It is the terminal

stage in the buying decision process that completes a transaction. It occurs either as a trial and adoption.

Post Purchase Behavior:It refers to the behavior of consumer after commitment has been

made. It organizes out of consumer experience regarding the use of the product and is dedicated in terms of satisfaction. This purchase is reflected in repeat purchase or abstains from further purchase.

Determinants of Consumer Behavior:The social environment provides stimulus to buyer behaviors and

psychological frame intervenes in the input processing. Howard Sheath divided it into endogenous and erogenous. Endogenous variable include the intervening variables in the consumer decision making process and erogenous variable includes personality, social clean, culture organization and financial status of individuals.

ECONOMIC DETERMINANTS:

The personal income:Income is the return of one’s endeavors. It gives buying power to

consumer. Which help then strike an exchange? From marketing stand point, it is

not the gross income. But the disposable and discretionary income that are important.

Disposable income:The entire income seldom available for spending before a consumer

can that his income for consumption or saving purposes they are pre emotive demands on. It is only after having met their demands that the consumer is left with income that disposed off in the manner that he/she desires.

Family Income:The point family system is important characteristic of the Indian

society. In such families it is not the income of an individual member. But it is the income of the whole family. The buying behaviors of family members are ultimately determined by the, relationship between the family wise requirements and the family income.

MANAGING THE DEALER NETWORK:The designing of the channel and the creation of the channel are not

every day tasks in the channel management. It is the administration of the dealer network that constitutes every day task in channel management. Managing the dealer network in its broadcast sense will include dealer servicing, dealer administration, dealer development. It was mention earlier that in many businesses the war for sales is fought and won the dealer level. Evidently, better servicing of the dealers, better communication with them, providing better motivation and training to them would result in superior loyalty of dealers and this loyalty holds the key for winning the markets for the firm. A firm that is superior in winning the dealer loyalty usually gets a bigger slice of the cake. Any large of medium sized firm engaged in marketing of consumer goods is bound to have large network of dealers spread over a large marketing territory.

MOTIVATIONAL ELEMENTS:Besides an attractive trade margin, may other motivational elements

will also have to be used by a firm towards ensuring proper dealer motivation.

PROMPT DELIVERY AND SERVICE:

The firm should service the dealers efficiently delivery of products must be prompt and adequate technical service support and advisory assistance must be provided wherever necessary.

SPECIAL INCENTIVES:Special incentives like quantity rebates off season rebates, etc. should

also be used to motivate dealers. Adequate advertising support by the principal also service as a good motivation for dealers; and similar is the case with sales promotional support and point-of-sale promotional support.

HARMONIOUS RELATIONS:Harmonious dealer relations are a very important factor in dealer

motivation. Dealers need help sympathy and understanding. They are happy to receive practical sales ideas from the sales men and sales tips will results in good dealer motivation. Like wise helpful and prompt attention to dealer complaints is also essential for keeping dealers satisfied. Maintaining effective communication with dealers is another essential element of dealer motivation. Effective communication by itself will give dealers a sense of participation periodical dealer meetings help build good communication and harmonious relations the meets would help the firm understand the views of dealers and simultaneously act as a morale booster among the dealer keeping them happy and well motivated involves a great deal of effort on the part of type firm. The fact that the dealers are not with in the direct control of the firm adds to the complexity of the task.

Normally, the relations between a firm and a dealer revolve largely around the following factors. The dealers in turn expects the firm to deliver a quality product, make adequate and regular supplies of the product, provide reasonable profits for the dealer in the price structure and render good sales promotional support. Evidently the development of the trade relations mix in the proper way is the fundamental task in dealer network management.

DEALER PRINCIPAL RELATIONS MUST PROVIDES SPECIFICATION TO BOTH:

The trade relations mix must be so developed as to provide reasonable and fair satisfaction to both the principal and the dealer. It is only natural that product and effective dealers pick and choose the best among available firms, products and brands. It is the first duty of a firm to offer available business proposition to the dealer. In addition the firm should provide suitable attractions to dealers and motivate them to be loyal to the firm concerned. The firm must also remember that dealers act more as a purchasing agent for consumers than as a selling agent for the principal.

DEALER MARGINS:

Dealer margin or trade margin is no doubt, the prime element in dealer principal relations. So in the first place, the firm should ensure that the trade margin or dealer commission is adequate to enable the dealer to make a reasonable profit out of the business.

EXPECTATIONS OF NEW GENERATION DEALERS:

In the earlier days, dealers were generally satisfied with modest trade margins. Their investment in the business infrastructure being relatively low they were able to run their business profitability with a reasonable margin. In recent years, however this position has been chasing rapidly costs of running retail stores have been going up steadily and the new generation dealers have been adopting shops and showrooms, they employ skilled and trained salesmen. The expectations of new generation dealers have been adopting shops and showrooms; they employ skilled and trained salesmen. The expectations of new generation dealers regarding profits are also considerably higher compared with those of their predecessors. Manufacturers have to necessarily settle for a higher outflow on dealer margins in the coming years. It may be necessary under the new circumstances to shift the attention from gross margins to retained; earnings of dealers. The firm and its dealers most make collaborative effort and achieve larger turnover and higher marketing productivity. So that at a given level of trade margins the retained earnings of dealers would be higher.

DEALER INDUCTIION:

Proper induction of fresh dealers into the organization is another important part in dealer management. It should lead to smooth assimilation of the dealer into the organization. Analysis shows that firms that strive for a distinctive position in the matter of channels attach great importance to dealer induction. At the induction stage they try to literally over-whelm the dealer with favorable image of the company, its organization and systems and styles so that he starts his association with the firm with most favorable his association with the firm with the most favorable attitude.

DEALER MOTIVATION:

To be effective the dealers have to be constantly motivated. The firm should contently strive to satisfy the needs of dealers. It is aptly said that a wise firm gets a good band of dealers and good dealers settle down with wise firm. For it the wise firm that provides the right motivation to dealers.

ATTRACTIVE TRADE MARGINS:

As already mentioned, an attractive trade margin is no doubt the prime factor in dealer principal relations and an important element of dealer motivations. After all the main objective of any dealer is to earn a reasonable return on his investment. We have discussed this in detail in the preceding paragraphs. Dealers cooperated publicity and service campaigns reduce the financial strain of the firm and enlist the willing involvement of dealers in campaigns.

ENSURING MERCHANDISING SUPPORT FROM DEALER:

Ensuring dealers support in merchandising is another important aspect of dealer management by enlisting the willing cooperation of dealers in the merchandising effort; the firm can derive many benefits. By a quick glance at the way in which the dealer aids and point of purchase promotion materials supplied

by a firm used in a retail shop, one can make a judgment about since a number of firms compete for shelf space from the retail shops, the ones that are good at dealer management and dealer motivation enjoy an edge in this matter.

ENSURING GOOD STORE IMAGE AND DERIVING PROMOTION ADVANTAGE:

The promotion advantage derived by a firm from its dealers extends far beyond merchandising and display the store itself can be projected as a display unit and a communication tool for the company. It is a fact that consumers patronize certain stores and discard certain others. Marketing men should understand the communicative significance of the retail outlets and the factors that influence consumers in their store choice.

DEALER TRAINING:

Dealer training is another important part of dealer management. The primary purpose of dealer training is to improve the performance of dealers through a sharpening of their sales skills. The dealers are required to sense and satisfy the needs of customers. This cannot happen unless and until the dealers are equipped with the requisite knowledge, skills, techniques and attitudes. Any progressive firm will there for make dealer training an integral part of its channel management task.

The content and methodology of dealer training should be so framed as to suit the background of dealers and the contextual requirements the prime purpose of the training is to impart to dealers knowledge about customers, products and their uses, and about competition, merchandising and sales techniques. In addition inventory management, credit management and sales promotion could also be included in the training content.

PERFORMANCE APPRAISAL:

Performance appraisal of individual dealers is another important aspect of channel management. The performance appraisal must be done with a view to identifying the specific strengths and weaknesses of dealers. If the performance is below the desired level, remedial action must be taken promptly. The appraisal should also identify the areas that can be improved through training.

The appraisal has to be based on pre-agreed standard of performance. Performance appraisal solely based on sales volume will be inadequate the ranking done on this basis may not reveal the true contribution made by the dealer concerned the fact that dealers face varying environments in their sales operations should be taken into account while making the appraisal instead of confining to a simple comparison of the dealers performance against the sales quota all relevant criteria must be used in the appraisal of dealers. The performance appraisal should lead to an improvement in the performance of dealers. Only in extreme case the appraisal may lead to termination of a dealership and when termination is the only alternative, the firm should not hesitate to take that course.

PERIODIC REVIEW OF DEALER NETWORK AS A WHOLE:

In addition to performance appraisal of individual dealers, periodic review of the dealer network as a whole and removal of weakness in the network must also be taken up. Following are some of the common important aspects.

It should be mentioned that the task of dealer management, dealer appointment, and dealer motivation and dealer development is a continuous job. The efforts cannot be slackened at any point of time. Even in the best of dealer networks, there would be dropouts every year. A few others may become inactive new dealers will have to be added to the system constantly and the inactive ones either actinides or weeded out. Even when a dealer network is in a fairly firm condition there has to be a continuous injection of fresh blood in to the system. Similarly training and development of dealers has also to be a continuous effort.

ANALYSIS

1. From how long you are dealing with VIDEOCON Group.

 

YEARS OF DEALING NO OF DEALERS

0-3 30

3-6 32

6-10 16

Above 10 22

 

3032

16

22

0

5

10

15

20

25

30

35

0-3 3-6 6-10 above 10

 From the Graph out of 100 respondents, 30 respondents have been

dealing with Videocon for less than three years, 32 respondents having the

dealership less than 6 years, 16 respondents having the dealership with less than 10

years and 22 respondents having the dealership above 10 years.

 

2. Which are the Brands your counter currently dealing. 

DIFFERENT BRANDS AT COUNTER

NO OF COUNTERS HAVING THE RESPECTIVE BRANDS OUT

OF 100

SAMSUNG 90

VIDEOCON 86

SONY 52

LG 80

PANASONIC 30

ONIDA 56

AKAI 24

SANSUI 70

BPL 25

WHIRLPOOL 50

PHILIPS 40

OTHERS 22

  

14%

14%

8%

13%5%

9%

4%

4%

8%

6%4%

11%

SAMSUNG

VIDEOCON

SONY

LG

PANASONIC

ONIDA

AKAI

SANSUI

BPL

WHIRLPOOL

PHILIPS

OTHERS

 

From the above Graph out of 100 counters it is clear that, Samsung

products are available at 90 counters (14 percent), Videocon products are available

at 86 counters (14 percent), LG products are available at 80 counters (13

percentage), Sansui products are available at 70 counters (11 percentage), Onida

products are available at 56 counters (9 percentage), Philips products are available

at 40 counters (6 percentage), Whirlpool products are available at 50 counters (8

percentage), BPL products are available at 25 counters (4 percentage), Akai

products are available at 24 counters (4 percentage) and finally others are available

at 22 counters (4 percentage).

 

3. What are the fast moving brands at your counter?  

DIFFERENT BRANDS AT

COUNTER

FAST MOVING BRANDS

WITH RESPECTIVE OUT OF

100

SAMSUNG 72

VIDEOCON 70

SONY 20

LG 65

ONIDA 28

SANSUI 55

BPL 18

WHIRLPOOL 30

OTHERS 24

24

30

18

55

28

65

20

70

72

SAMSUNG

VIDEOCON

SONY

LG

ONIDA

SANSUI

BPL

WHIRLPOOL

OTHERS

From the above Graph it is clear that, out of 100 counters Samsung is

the fast moving brand at 76 counters (21 percent). The second place occupied by

Videocon at 70 counters (18 percent) and the remaining places are occupied by LG

at 65 counters (17 percent), Sansui at 55 counters (14 percent), Onida at 28

counters (7 percent), others at 24 counters (7 percentage), Sony at 24 counters (6

percentage) and finally BPL at 18 counters (5 percent) respectively.

  

 

4. Which is the most effective form of advertisement to promote a product? 

EFFECIVE INFLUENCING MEDIA

RESPONDENTS

ELECTRONIC MEDIA 52

PRINT MEDIA 24

HOARDINGS 14

RADIO 10

52

24

14

10

0 10 20 30 40 50 60

ELECTRONIC MEDIA

PRINT MEDIA

HOARDINGS

RADIO

RESPONDENTS

From the graph out of 100 respondents 52 people opined that

electronic media ads will influence them more and 24 opined that print media has

much influence after the electronic media. Next 3 rd place was occupied by

Hoardings with 14 votes and Finally 10 respondents are voted for Radio.

XXX5. What type of schemes will be more influence for a product sale?

SCHEMES THAT INFLUENCE CUSTOMERS MORE

RESPONDENTS

EXCHANGE OFFERS 20

PRICE REDUCTIONS 35

FREE GIFTS 30

SCRATCH CARDS 15

20

35

30

15

0

5

10

15

20

25

30

35

EXCHANGEOFFERS

PRICEREDUCTIONS

FREE GIFTS SCRATCHCARDS

  From the above graph out of 100 respondents 30 dealers opined

that Free Gifts influences them more when they buy a product and 35 opined that

Price Reduction offers will influence them more. After 20 opined that Exchange

offers have much influence and Finally 15 opined that they are influenced more by

the Scratch cards.

   

XXX6. Based on which aspects do you sell a product?

 

 MAIN ASPECTS TO PROMOTE A PRODUCT SALE

RESPONDENTS

BRAND IMAGE 30

PRICE 15

SERVICE 35

FEATURES 20

30

1535

20

BRAND IMAGE

PRICE

SERVICE

FEATURES

From the above Graph out of 100 respondents it is clear that, Service

is the first aspect which influences a product sale opined by 35 respondents. After

that the second place was occupied by Brand Image with 30 votes and next the

importance goes to Features opined by 20 respondents. Finally Price is remained at

last place with 15 votes.

 

7. Compared to competitor brand, improvement is required for VIDEOCON Group in…

 

IMPROVEMENT NEEDED BY VIDEOCON AT VARIOUS

ASPECTS

RESPONDENTS

PRICING 13

PROMOTION 14

QUALITY 35

PRODUCT RANGE 11

SERVICE AFTER SALE 27

13

14

35

11

27

PRICING

PROMOTION

QUALITY

PRODUCT RANGE

SERVICE AFTER SALE

 From the above Graph out of 100 respondents it is clear that

improvement required by Videocon group in different sectors should be as follows.

35 dealers opined that Service after Sales should be improved.27 dealers opined

that Quality should be improved. 14 persons are opined that Promotion must be

improved. 13 dealers opined that Pricing should be improved and Finally 11

dealers opined that improvement should also required in Product Range.

 

8. Support of VIDEOCON Group to Dealers is

SUPPORT FROM VIDEOCON TO DEALERS

RESPONDENTS

GOOD 45

AVERAGE 32

POOR 23

45

32

23

GOOD

AVERAGE

POOR

 

From the above Graph out of 100 respondents it is clear that, 45

dealers opined that support provided to dealers from Videocon is good.32 dealers

opined that support from Videocon to dealers is Average and finally 23 people

opined that support provided to dealers from Videocon is Poor.

 

9. What are the strengths of VIDEOCON Group?

STRENGTHS OF VIDEOCON RESPONDENTS

BRAND IMAGE 40

PRICING 24

QUALITY 10

PROMOTION 15

SERVICE AFTER SALE 11

40

24

10

15

11

0 5 10 15 20 25 30 35 40

BRAND IMAGE

PRICING

QUALITY

PROMOTION

SERVICE AFTER SALE

  

 From the above Graph out of 100 respondents, 40 dealers

opined that Brand Image is the Strength of Videocon. 24 dealers opined that

Pricing is the Strength of Videocon. 15 dealers opined that Promotion is the main

strength of Videocon. 11 dealers opined that Service after Sale is the strength of

Videocon and the remaining 10 dealers felt that quality is the strength of Videocon.

XXX10. How can you improve your sales?

EFFECTIVE TECHNIQUES USING AT VARIOUS COUNTERS TO

IMPROVE THEIR SALESRESPONDENTS

SERVICES 32

ADVERTISEMENT 27

OFFERS 20

GOOD DEMONSTRATION 21

  

20

21

32

27

SERVICES

ADVERTISEMENT

OFFERS

GOOD DEMONSTRATION

From the above Graph out of 100 respondents it is clear that, 32

persons opined that Offers are the most effective sales factor at counter. 27 persons

opined that Services are the effective sales factor at counter.21 dealers opined that

good demonstration is the effective sales factor at counter and finally remaining 20

dealers opined that Advertisement is the most effective sales factor at counter.

 

 XXX11. What benefits you expect from merger? 

EXPECTED BENEFITS BY DEALER AFTER THE MERGER

PROGRAM

RESPONDANTS

LOW PRICES 17

GOOD QUALITY 33

PROMOTION 20

SERVICES 30

 

17

33

20

30

0

5

10

15

20

25

30

35

LOW PRICES GOODQUALITY

PROMOTION SERVICE

From the above Graph out of 100 respondents it is clear that 30

dealers opined that they are expecting lot more benefits in services after the

merger program.33 dealers opined that quality will reach the good standards.20

dealers opined that they will get Promotional benefits and Finally 17 dealers

opined that Prices will be decreased.