TELEVISION INDUSTRY IN INDIA

TELEVISION INDUSTRY IN INDIAGROUP-3BRIJESH KUMAR-16RAMAN CHANDRA-17RICHA GHOLY-18SHALINI IYER-19DAMINI CHAUHAN-20NIKITA SHARMA-21

MANAGEMENT PROBLEMWhirlpool Corporation is considering whether to enter the Indian TV market or not. RESEARCH PROBLEMTo determine the current perception of consumers about Whirlpool corporation vis--vis other brands(competitors) and to know the most important factors buyers consider while buying a brand of television.RESEARCH QUESTIONS1.What factors do households consider when selecting a TV brand?2.What is the market size of TV industry in India?3.Which are the major competitors in the market and their market share?4.Which brands are preferred when shopping for specific product categories?5.What is the demographic and psychological profile of the customers ? 4INDIAN TV MARKET TRENDSIndia television market is the third largest TV market after the U.S. and China.Market which was once dominated by Indian players like Videocon, BPL and Onida are now dominated by MNC players LG, Samsung, Sony, Panasonic and Toshiba.Even in technology wise market is clearly shifted towardsLCD,LEDandPlasmafrom CRT (Cathode Ray Tube) TVs.Upper class and Upper middle class has already shifted to smart TV segment, now middle class segment is largely shifting towards LCD, LED and Plasma TVs.A robust 400 million Indian middle class with growing disposable incomes has been instrumental in driving demand of various consumer electronic devices.During 200613, LCD, LED and Plasma TVs segment has shown a robust 76 % growth rate in India.For the financial year 2012-13 this segment has sold more than4.6 Million units, which accountsRs 105 Billion.Domestic demand of electronics in India is expected to reach USD 400 Billion by 2020. At the current rate of growth domestic production can cater to a demand of USD 100 Billion in 2020 as against a demand of 400 Billion USD and the rest would need to be met by imports.MAJOR FACTORS CONTRIBUTING TO GROWTHIntensity of competition Emergence of MNCsHigh rate of new entrantsPromotional schemesExchange schemeFree giftsDiscountsPayment schemesEasy availability of creditInterest free deferred payments6 months to 3 years payment duration

PENETRATION LEVELS Indian television market is highly under penetrated compared to China, developed countries and world average.

(Source: Economic intelligence unit,2013)World Average=538CTV MARKET SIZE AND GROWTH RATESTelevision market in India is expected to grow at a robust rate of 19.1% CAGR till 2016.

(Source: FICCI) FLAT PANEL TV MARKET SIZE This market consists of LCD, LED, Plasma, 3D and Smart TVs.The FPD TV market which in 2012 stood at $3.55 billion , is likely to grow at a compound annual growth rate of 21.7 per cent by 2015.flat panel TV market in India is expected to touch the $6.39 billion mark by 2015.Thetotal market in terms of consumption for such TVs stood at 6.48 million units, while the total domestic manufacturing was 1.93 million units in 2012.LCD,LED,PLASMA TV MARKET SHARE IN FY12-13LG,Samsungand Sonydominates the segment with more than65 % market shareand are thetop television brands in India

FACTORS DRIVING SHIFT TOWARDS LCD,LED AND PLASMA TVsChanging lifestyleDifferent payment optionsTechnological advancementsRise in family incomeMinimal price difference between CRT and LCD,LED TVs.Picture qualitySound qualityInnovationKEY STRATEGIES OF MAJOR PLAYERSSAMSUNGCreate a premium image by emphasising on global brandCompetitive pricing

LGFocus on low and medium priced productsRegional distribution modelLG was the first brand to introduce gaming in CTVs

SONYEnhance product strength in order to increase sales and product value. launch models tailored to meet local needsONIDAvalue for money propositionCreating a strong emotional pull through brand salienceBroad basing product offering

VIDEOCON Leveraging on being an Indian companyMultiple brand strategyFocus on dealer/distribution network

BPL market segmentation strategySub-branding strategyFocus on in-store and POS branding

SWOT ANALYSIS OF TV INDUSTRY STRENGTH Presence of established distribution networks in both urban and rural areas. Presence of well known brands.Easy availability of finance.

Weakness Demand is seasonal and high during festive season.Demand is dependent on good monsoons.Poor government spending on infrastructure.Low purchasing power of consumers.

OpportunitiesIn India, penetration level of white goods is lower as compared to other developing countries.Unexploited rural market.Rapid urbanization.Increase in income levels, i.e. increase in purchasing power of consumersThreatsHigh import duties on raw materials.Cheap imports from ASEAN at 0% or concessional import Duty & imports from ChinaPoor infrastructure; Non-Availability of regular power supplyIMPACT OF FTASCurrently India tops the list of ASEAN countries with 30 FTAs, eight are with the integrating Asian region, while 22 are outside of Asia.The local manufacturing benefits of all the major consumer appliances in expected to decrease by 2017 when the FTAs with the ASEAN countries are fully implemented

RESEARCH DESIGNExploratory research- The objective is to gather preliminary information that will help define problems.Secondary researchsuch as reviewing available literature and/or data to determine trends and shifts in consumer preferences. competitor analysis.Descriptive researchThe objective is to describe the market potential and market share of TV industry.Primary data will be collected through sources like personal interviews, questionnaire to gain an understanding of customer preferences, competition and factors taken into consideration while purchasing TV.This will be then followed by statistical analysis on the survey to find any pertinent associations or trends.

METHODOLOGYSpecification of information sourcesPublished Secondary data collected through General business sources such as guides like the Research Papers , insights on the websites of Samsung, Sony, Panasonic and other research firms .

Specification of Data Collection Personal interviewing : Field Work-To collect data from consumer, we will be using written questionnaires. Gather information about the most important factors buyers consider while buying a brand of television. To understand the consumer preferences.

Overview of sampling plan Sample size will be of 120. Methodology used for the sampling is Non-probability sampling - Judgmental sampling. According to our judgment, we will be taking our sample frame from Dwarka region of West Delhi.LIMITATION OF THE STUDYThe nature ofself-reporting: Respondents sometimes are reluctant to reveal private details in our questionnaire. Moreover it is also affected by the customers behavior at that instant. Sample Selected: Sample selected by us is some of the well developed areas of Delhi so result might be different if we will focus on others parts as well. Qualitative research Limitations: Every time the findings related to various factors cannot be generalized to the larger population.Time Constraints: we have very less time to complete our research due to academic schedule.

DATA ANALYSIS STRATEGY Here we will use generic software such as SPSS, and Microsoft Excel. We will use ANOVA, Regression or Correlation technique as may be applicable. Result can come in a Better and more understandable format if we will focus on specialized market research tools.

TIMELINE

DAYSACTIVITY1Literature Review1-2Questionnaire Development6-7Fieldwork, Personal Interview2-3Data Preparation2-3Analysis 1Presentation1Final report availableRESOURCES REQUIRED Research papers on TV industry. Manpower. Past information and data.

EXPECTED OUTCOMES OF RESEARCH

Since the Indian TV market is about to experience high growth, has low penetration levels and domestic production is not sufficient to cater to such demand, the company should enter the Indian TV industry. It should focus on metros and tier I and tier II cities initially and subsequently enter the rural market.BIBLIOGRAPHYhttp://www.currentweek.com/top-television-brands-in-india-market-2013-trends-market-share-in-lcd-led-plasma-tvs-segment/http://www.adlittle.com/downloads/tx_adlreports/Consumer_appliances_report.pdf http://www.samsung.com/in/