Logo 11111111111

Embed Size (px)

Citation preview

  • 7/31/2019 Logo 11111111111

    1/100

    Perception of

    consumer & dealers

    on

    Videocon

    d2h

    A project

    undertaken at

  • 7/31/2019 Logo 11111111111

    2/100

    Videocon

    Industries ltd75-76, Saket Mall Bye Pass Road,

    Agra

    SUBMITTED TO:

    SUBMITTED BY:

    Mr. Amit Jain VarunKatara

    Marketing Manager BBA (V

    sem)

    Videocon Industries ltd. RATM

  • 7/31/2019 Logo 11111111111

    3/100

    ACKNOWLEDGEMENT

    An undertaking of this type is a result of contribution received from a

    number of people. Never can this report be claimed as my individual

    effort. No amount of words written will be sufficient and adequate to

    acknowledge all the people who have provided me with the

    inspiration, guidance and help during the preparation of the project.

    Therefore I extend my deep sense of gratitude towards them.

    I am extremely grateful to Mr. Amit Jain, (marketing manager), who

    always supported me during my summer training. I am also thankful

  • 7/31/2019 Logo 11111111111

    4/100

    to all other head of departments of company for their kinds

    cooperation who always helped me in proving the required

    information whenever needed.

    Finally I Regret that it is not possible to list all those who helped me

    to make this project possible. I pay my thanks and regard to all of

    them who are directly or indirectly involved in me for this project.

    Varun Katara

    Rajiv

    Academy for

    Technology &

    Management

    PREFACE

  • 7/31/2019 Logo 11111111111

    5/100

    Industry exposure is the most crucial part of the

    management studies in which a student is able to

    synchronize his technical knowledge with practical

    knowledge gained in the any of the organization.

    I chose the project title D2H a New Beginning in Videocon

    Industries Limited, Agra which is a great learning

    experience.

    I hope that the words of projects will communicate the actual

    of experienced gained with subtlety and precision, which is

    unapproachable, by any other means.

  • 7/31/2019 Logo 11111111111

    6/100

    Anybody can do a work but very few can excel it and they

    are said to be repository of expertise skills of that work

    CORPORATE PROFILE

    Videocon Industries Limited is one of the biggest business conglomerates in

    India. In 1979 Late Mr. Nandlal Madhavrao Dhoot started this business with

    great vision. His vision reflects his ideology for business

    Videocon founder Late Mr. Nanadlal M Dhoot

    Vision And Mission

  • 7/31/2019 Logo 11111111111

    7/100

    To delight and deliver beyond expectation through ingenious

    strategy, intrepid entrepreneurship, improved technology, innovative

    products, insightful marketing and inspired thinking about the future.We can feel this vision while working with the Videocon also. This group is

    working very aggressively under the guidance of current Chairman Mr.

    Venugopal Nandlal Dhoot & Vice chairman and Chief executive Officer Mr. K R

    Kim. This group has good presence in various sector but consumer durables is

    its major business.

    To increase the existing market share the company has launched its consumer

    retail chain DIGI World in major cities of India. There is availability of five major

    brands of Videocon Group. These all brands have good image in the mind of

    the consumers. These megastores have got good starting. There are almost 16

    shops have been launched so for. Mr. K R Kim, CEO of Videocon Group has told

    in an interview they are focusing on almost 200 shops all around in India.

    These megastores give a lot of boost to the existing networks of distributors,

    direct dealers and sub dealers. These stores mainly exist in major cities like

    Mumbai, Delhi, Gurgaon and Ghaziabad etc.

  • 7/31/2019 Logo 11111111111

    8/100

    There are many reasons to open these megastores. As the company is

    adopting aggressive marketing plan for increasing sales so they are focusing on

    many dimension of marketing. Among them is increasing brand visibility, for

    increasing this they are working to do so. DIGI World is one of the initiatives

    taken by the new CEO Mr. K R Kim. There are several stapes have been taken

    from this former CEO of LG. During his tenure in LG this man has made

    miracles.

    COMPANY OPERATION

  • 7/31/2019 Logo 11111111111

    9/100

    Videocon is the biggest Indian company. In consumer durables field this

    company has great reputation in market and among customers. Other two

    major players LG and Samsung are Korean player that rock entire Asia by their

    technology.But in India, Videocon not only give them strong challenge but also

    holding the 2nd position

    in this sector.

    Now Videocon group is unfolding its wings to fly in the sky of the globe. For

    this they are entering in the different segment also.

    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 Electronics, Home Appliances & Compressor

    manufacturing in India

    We 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.

  • 7/31/2019 Logo 11111111111

    10/100

    Refrigerator manufacturing is further supported by our in house

    compressor manufacturing technology in Bangalore.

    Display industry and its components

    With 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 format CPT.

    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

  • 7/31/2019 Logo 11111111111

    11/100

    An 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.

    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 Colour TV

    ODM for Indian Market

    Techneglas Glass Shell Technical Collaboration

  • 7/31/2019 Logo 11111111111

    12/100

    Akai Audio Products

    and Colour TV

    ODM for Indian Market

    Hyundai Colour 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

    HISTORY & MILESTONES

    This is started in 1979 but it curved it shape in 1987 by starting manufacturing

    of color Television and Washing Machine. These two products made major

    impact on Indian consumers. Gradually Videocon became the brand of India.

    After that Videocon never looked back and in year 1989 they launched Home

    Theater System and Air Conditioner for India. There were only very few player

    in that market like Philips, BPL, Crown, and Bush etc but among them Videocon

    successfully made his position.

    In year 1991 they started manufacturing of Refrigerators and Air coolers. Till

    then Videocon Washing Machine became important product in Indian market.

  • 7/31/2019 Logo 11111111111

    13/100

    In Videocon there was sea change came in year 1995, when they decided

    about manufacturing of CRT shell. From here Videocon made a significant

    change in its policy. They focused on the manufacturing of components which

    could generates more revenues and help them to keep their product cost low.

    In year 1996 they entered in the field of the small home appliances, they

    started production of mixer and juicer, dice washer, iron, toaster.

    First time after its inception Videocon diverse its business and selected a new

    field of energy by entering into the business of Oil and Gas.

    In 1998 they started manufacturing of compressor and compressor motor

    which help them to reduce cost of the refrigerators and air conditioners.

    One of the major achievements comes into the history of the Videocon when

    they took over Philips India plant. Here Videocon made a significant impact on

    the Indian corporate.

    This was time when Videocon wanted spread its wing for global business by

    acquiring Thomson color picture tube business in year 2006. In the same year

    they took over Electrolux three plants.

  • 7/31/2019 Logo 11111111111

    14/100

    MANAGEMENT OF THE ORGANISATION

    Mr. Venugopal Nandlal Dhoot is the current Chairman of the company. Under

    his leadership Videocon is increasing its height of business. Mr. K R Kim is Chief

    Executive Officer of its consumer durable business. There is a Board of

    Directors in Videocon that keeps the company on the path of success. Name of

    the directors are following

    Mr. Venugopal N Dhoot

  • 7/31/2019 Logo 11111111111

    15/100

    Mr. Pradeepkumar N Dhoot

    Mr. K C Srivastava

    Mr. Kuldeep Kumar Drabu

    Mr. Satyapal Talwar

    Mr. S Padmanabhan

    Maj. Gen. S C N Jatar

    Mr. Arun L Bongirwar

    Mr. Didier Trutt (Nominee - Thomson S.A)

    Mr. Johan G Fant (Nominee - AB Electrolux (Publ) )

    Mr. B Ravindranath (Nominee - IDBI Limited)

    Mr. Ajay Saraf (Nominee - ICICI Bank Limited)

  • 7/31/2019 Logo 11111111111

    16/100

    STRUCTURE OF THE ORGANISATION

    As they are in many businesses with multiple brands so they have adopted

    MATRIX STRUCTURE. For each and every department they have clear

    guidelines. Job responsibilities are quite clear. All the employees are

    accountable for their job. In this organization rule regulation are pre defined

    and flexible. E.g. In all branches all over India there is a Branch Marketing

    Manager, he/she has to report two bosses one Branch Operation Head and

    Regional Marketing Manager for his all activities.

  • 7/31/2019 Logo 11111111111

    17/100

    FUNCTIONAL AREAS

    As any other company this company has many functions each and every

    function is very important for the organization. Major functional areas are

    followings

    Financials Functions

  • 7/31/2019 Logo 11111111111

    18/100

    In this they practice all the function of the finance. But major are followings

    Control over all cash inflows and outflows.

    Taxation

    Tight control over miscellaneous expanses

    Marketing Function

    In this they practice every possible thing which develop and build the image of

    the company. Major activities are followings

    Branding

    Advertisement

    Marketing Intelligence

    About Competitors

    About dealers, sub dealers and distributors

    Measuring impact of the marketing activities like

    Road shows

    Canopies

    Canter Activities

    Dangler hanging, Postering and In-shopping

  • 7/31/2019 Logo 11111111111

    19/100

    Advertisement in print & electronic media

    Taking feedback of the dealers and distributors about advertisements

    Design new marketing ideas to create awareness and image building

    Production And Operation

    In this area they use only one slogan

    Reduce cost, gain market but never compromise with quality

    Major functions are followings

    Control over inventories (not more than 3days)

    Reduce wastage

    As this company is eco friendly, so they practice it in their production

    line also.

    Energy efficiency

    Use non conventional energy sources also (solar and wind energy)

  • 7/31/2019 Logo 11111111111

    20/100

    Information Technology

    Now information is the business, this line is in practice in Videocon. They

    provide best possible information facility to their employee. They have

    their own intranet network inside the organization. They have vgmail.in.

    It gives employee to work from house and give direct contact to the

    head office. Company provides enough facility to its employees to work

    inside and outside of the organization. These facilities make them

    efficient and faster to work proper and within given time. For all other

    information they have Videoconworld .com also. It is the biggest source

    of information for internal and external customers. This site does not

    only give the proper information about the company but also give

    information about industry as well as. They have trend analysis of the

    industry which gives the visitors more satisfy to visit the site.

    Human Resource

  • 7/31/2019 Logo 11111111111

    21/100

    As this company is stiff challenge from their competitors so they are

    focusing to recruit people with passion of work for organization and they

    must have combination of creativity and knowledge of how to

    implement plan properly.

    Selection of right kind of people for right kind of job

    Training

    Creating positive atmosphere for work

    Enrich employee efficiency for productivity

    Rate employee for their performance

    Time to time development program for employee

    Others

    There are few more functional areas also which are supporting other major

    functional areas.

    Logistic

    This company has many MOD agreements with Sansui, Electrolux, Kenstar,

    Kelvinator and AKAI. There is complexity for logistic department. They are

    responsible for dispatching all goods on time. They are very important for the

  • 7/31/2019 Logo 11111111111

    22/100

    company and its logistic policy. Its Integrated Logistic Policy for all the products

    and all brands is very useful. Their few rules are following

    1. Delivery of all orders within 24 hours2. All products should be delivered in proper condition3. There must not be any mismatch in delivered and ordered goods4. Defective good must be taken back to official warehouse

    Quality Management Initiative

    This company follows ISO 9001 as its quality tools as they are work in very

    competitive environment so there is very less chance of error. By

    implementing ISO standards they are able to reduce the cost of its product to

    give competition to its competitors. They never forget that safety and health

    concern about its employees. So they can work in such atmosphere which

    enhances their productivity.

  • 7/31/2019 Logo 11111111111

    23/100

    VIDEOCON IN CONSUMER DURABLES

    CEO Mr. K R Kim

    Videocon is major Brand in Consumer durables in India. Under the leadership

    of CEO Mr. K R Kim, company has reached at the 2nd

    position in Indian market.

    The company is started its operation in year 1979 with consumer durables

    business. Slowly and gradually this company gets 2

    nd

    position in Indian

    consumer durables market. There were several players in the market like

    Philips, Bush, Crown, Uptron, Kelvinator, BPL, Sony etc. After 1992, there were

    many foreign players entered in Indian market like Samsung, Canon, LG, Sanyo,

    Electrolux, Thomson, Panasonic, Sansui, Akai, Toshiba etc. These foreign

    players uprooted all the Indian players but not Videocon. With the continuous

    R&D, Quality, large dealer Network and after sales service make a strong place

    for Videocon among Indian customer.

    Later Videocon has created not only its brand but also support few brands also.

    They signed MOD (Marketing Operation and Distribution) Agreement with

  • 7/31/2019 Logo 11111111111

    24/100

    Electrolux AB, Sansui, Akai, Hyundai, Toshiba etc. They not only support these

    brands but help them to grow in Indian market. Presently there are six major

    brands in the basket of Videocon.

    1. Videocon2. Electrolux3. Kelvinator4. Sansui5. Akai6. KenstarAll these six are very strong brands they not only give competition to LG,

    Samsung etc but each other also. These brands do well in Indian market as

    well as in global market also. Few brands are even brands with superior

    technology but Videocon treats them as their own brands. There are

    following detail of the brands.

  • 7/31/2019 Logo 11111111111

    25/100

    VIDEOCON GROUP LOGO LOGIC

  • 7/31/2019 Logo 11111111111

    26/100

    ( Old Logo ) ( New Logo )

    Videocon Group, the Rs 5,000-crore conglomerate, has embraced a new brand

    identity. The brand has shed its solid steel 'V' for a more fluid, lava like 'V',

    coupled with a new proposition 'Experience change'. Prior to this, the brand

    has banked on other propositions, such as 'Technology for health and

    pleasure', 'Bring Home the Leader', 'New Improved Life', 'The Indian

    Multinational', 'Whatever role life gives you, play it big', as well as the most

    recent one, 'Eco Logic for sustainable life'. The company unveiled its new

    tagline recently, at an event promoting the 2009 chapter of the IIFA awards.

    The new logo was unveiled in San Francisco, by the Videocon brand

    ambassador Shah Rukh Khan.

  • 7/31/2019 Logo 11111111111

    27/100

    INDUSTRY

    ANALYSIS

  • 7/31/2019 Logo 11111111111

    28/100

    ON

    DIRECT TO

    HOME (DTH)

  • 7/31/2019 Logo 11111111111

    29/100

  • 7/31/2019 Logo 11111111111

    30/100

    CONTENTS

    Chapter

    1.Introduction2.Product lines and consumer behavior3.Growth of the industry4.

    Technology of production and distribution

    5.Marketing6.Innovation7.Strategies and competition in the industry8.Critical success factors

  • 7/31/2019 Logo 11111111111

    31/100

    Appendices

    Chapter-

    1

    Introduction

    Overview of the Industry

    The history of Indian television dates back to the launch of doordarshan,

    Indias national TV network in 1959. The transmission was in black & white.

    The 9th

    Asian games which were held in 1982 in the countrys capital New Delhi

    heralded the mark of color TV broadcasting in India. In 1991, Indian economy

    was liberalized from the License Raj and major initiatives like inviting foreign

    direct investments, deregulation of domestic business emerged. This lead to

    the in flux of foreign channels like Star TV and creation of domestic satellite

    channels like Sun TV and Zee TV. This virtually destroyed the monopoly held by

    doordarshan. In 1992, the cable TV industry started which lead to revolution.

  • 7/31/2019 Logo 11111111111

    32/100

    Every city in the India had a complex web of co-axial cables running through

    the streets with a new breed of entrepreneurs called as cablewallahs or Local

    Cable Operators (LCO) taking in charge of distribution. The film industry was

    shocked by this sudden growth and there were even organized protests for

    calling off the Cable TV industry. There were simply too many cable operators

    in the country and the channels had a difficult time in getting its returns as the

    existing system was a non-addressable and the operators could simply give a

    reduced number of subscribers to amass profit. This lead to the emergency of

    a new breed of firms called as Multi System Operators (MSO) who had heavy

    financial muscles to make capital investments. . The MSO industry became

    highly monopolistic which warrants government participation to ensure

    competition.

    Later on, the United Front Government had issued a ban on use of ku band

    transmission. After a change of government, the ban got lifted finally in 2001

    and TRAI issued the guidelines for operating DTH. Countrys first private DTH

    license was awarded to Dish TV in 2003 which started operations in 2004.

    Prasar Bharati also started its product DD-Direct+.

    DTH Digital TV system receives signals directly from satellite through the dish,

    decodes it with the Set-Top Box and then sends stunningly clear picture and

    sound to TV which is the business under taken by some companies byobserving the rate of growth and scope for business & opportunity in the

    Indian market which has 120 million viewers of TV.

    With the Indian economy growing at a GDP growth rate of 7.4%, there is a

    sense of growth prevailing every where. The average Indians disposable

  • 7/31/2019 Logo 11111111111

    33/100

    income and purchasing has risen to never before levels. The Indian

    entertainment and media industry is not far behind. It is currently estimated at

    a worth of Rs.450 billion with a CAGR of 18% over the next 5 years. Terms

    which were alien to Indians like capital DTH, digital cables, IPTV are suddenly

    finding presence in the countrys journals.

    In 2007, TRAI proposed a new initiative by name Head end-In-The-Sky (HITS)

    Model as an alternative to the existing cable distribution. Instead of the MSOs

    providing the bundle, there will be a single HITS operator who will prepare the

    bundle of channels and beam it to the Headed in the satellite. The LCOs can

    receive this digitalized bundle and deliver to the individual homes. With HITS,

    country wide implementation of CAS becomes instantaneous and cost-

    effective. This benefits both the broadcasters and the customers by ensuring

    Addressability, Better quality of service and increased number of channels.

    Another emerging trend is the IPTV which is yet to be regulated and one can

    expect lot of action in this sector.

    According to a report on Direct to home (DTH) service, it predicts that India

    would overtake Japan as Asias largest DTH by 2010 and be the Asias leading

    cable market by 2010 and the most profitable pay-TV market by 20015.

    List of players in the industry

    Doordarshan (DD-Direct +) of Prasar Bharati comprising of 33 FTAchannels and 12 All India Radio Channels.

    Dish TV of ZEE group. Tata Sky joined venture between Tata and Rupert Murdochs Sky TV. Sun direct of Sun Network.

  • 7/31/2019 Logo 11111111111

    34/100

    BIG TV of Reliance Anil Dhirubhai Ambani group. Airtel digital TV of Bharati telemedia Videocon d2h of videocon industries

    Categorization of players in the industry

    Government owned player: DD Direct+.

    Private players: Dish TV, Tata Sky, Sun direct, Big TV, Airtel digital TV, Videocon

    d2h

    Brief profile of players in the industry

    DD DIRECT+

    Doordarshan is the public television broadcaster of India and a divisionof Prasar Bharati, a public service broadcaster nominated by the Government

    of India. It is one of the largest broadcasting organizations in the world in

    terms of the infrastructure of studios and transmitters. Recently, it has also

    started Digital Terrestrial Transmitters. On September 15 2009, Doordarshan

    celebrated its 50th anniversary.

  • 7/31/2019 Logo 11111111111

    35/100

    Doordarshan had a modest beginning with the experimental telecast starting

    in Delhi on 15 September 1959 with a small transmitter and a makeshift studio.

    The regular daily transmission started in 1965 as a part of All India Radio.

    The television service was extended to Bombay (now Mumbai) and Amritsar in

    1972. Till 1975, seven Indian cities had television service and Doordarshan

    remained the only television channel in India. Television services were

    separated from radio in 1976. Each office of All India Radio and Doordarshan

    were placed under the management of two separate Director Generals in New

    Delhi. Finally Doordarshan as a National Broadcaster came into existence.

    National telecasts were introduced in 1982. In the same year, color TV was

    introduced in the Indian market with the live telecast of the Independence Day

    speech by then Prime Minister Indira Gandhi on 15 August 1982, followed by

    the 1982 Asian Games being held in Delhi. Now more than 90 percent of the

    Indian population can receive Doordarshan (DD National) programmes through

    a network of nearly 1400 terrestrial transmitters and about 46 Doordarshan

    studios produce TV programs today.

    DD Direct+ is a free Direct to Home (DTH) service that provides satellite

    television and audio programming to households and businesses in the Indian

    subcontinent. Owned by parent company Doordarshan, DD Direct Plus was

    launched on December 16, 2004. Now chairman of DD plus+ is Shri Arun

    Bhatnagar and CEO is B S Lalli under the ministry of information and

    broadcasting.

  • 7/31/2019 Logo 11111111111

    36/100

    Dish TV

    Dish TV is the first private DTH satellite television provider in India,

    using MPEG-2 digital compression technology, transmitting using NSS Satellite

    at 95.0. Dish TV's managing director and Head of Business is Jawahar Goel who

    is also the promoter of Essel Group and is also the President of Indian

    Broadcasting Foundation and Mr. Subhash Chandra is the Chairman of Dish TV.

    Dish TV is a division of Zee Network Enterprise (Essel Group Venture). EGV has

    national and global presence with business interests in media programming,

    broadcasting & distribution, speciality packaging and entertainment. Zee

    Network incorporated dishtv to modernize TV viewing. By digitalizing Indian

    entertainment, this enterprise brought best television viewing technology to

    the living room. It not only transmits high quality programmes through

    satellite; but also gives a complete control of selecting channels and paying

    DTH service was launched back in 2004 by launching of Dish TV by Essel

    Group's Enterprises. Dish TV is on the same satellite where DD Direct+ is. Dish

    TV started its service in Pakistan with the collaboration of Budget

    Communication. Dish TV was only DTH operator in India to carry the two

    Turner channels, Turner Classic Movies and Boomerang. Both the channels

    were removed from the platform due to unknown reasons in March 2009.

    Dish TV uses NSS-6 to broadcast its programmes. NSS-6 was launched on 17

    December, 2002 by European-based satellite provider, New Skies. Dish TV

    hopped on to NSS-6 from an INSAT satellite in July 2004. The change in the

    satellite was to increase the channel offering as NSS 6 offered more

    transponder capacity.

  • 7/31/2019 Logo 11111111111

    37/100

    Tata Sky

    Tata Sky is a DTH satellite television provider in India, using MPEG-2 digital

    compression technology, transmitting using INSAT 4A at 83.0. Tata sky is

    incorporated in 2004; Tata Sky is a JV between the TATA Group and STAR. Tata

    Sky DTH endeavors to offer Indian viewers a world-class television viewing

    experience through its satellite television service. Vikram Kaushik is present

    CEO of Tata Sky Ltd. The TATA Group is one of India's largest and most

    respected business conglomerates. It comprises 93 operating companies in

    seven business sectors and diversified group: information systems and

    communications, engineering, materials, services, energy, consumer products

    and chemicals. The TATA Group has operations in more than 40 countries

    across six continents and its companies export products and services to 140

    nations.

    The Group and its enterprises have been steadfast and distinctive in its

    adherence to business ethics and their commitment to corporate social

    responsibility. This is a legacy that has earned the Group the trust of many

    millions of stakeholders in measure few business houses anywhere in the

    world can match. The SKY brand, owned by the UK-based British Sky

    Broadcasting Group, brings to Tata Sky the reputation of more than 20 years

    experience of satellite broadcasting. SKY is well known for the innovative

    products and services launched by BSky, such as DTH broadcasting in 1989,

    digital satellite broadcasting in 1998, interactive television services in 1999 and

    the SKY+ personal video recorder in 2001. Tata Sky joins an international group

  • 7/31/2019 Logo 11111111111

    38/100

    of DTH businesses that includes platforms as far apart as the UK and Italy in

    Europe, and Mexico and Brazil in Latin America. Tata Sky Ltd is the First Indian

    DTH provider to be awarded the ISO 27001:2005 accreditation, the ultimate

    benchmark for information security. The assessment for the certification was

    conducted by Intertek Systems Certification, the management systems

    registration business unit of Intertek Group plc and is accredited by several

    internationally-recognized accreditation bodies worldwide.

    In October 2008, Tata Sky announced launching of DVR service Tata Sky+

    which allowed 45 hours of recording in a MPEG-4 compatible Set Top Box. The

    remote is provided with playback control keys and is being sold with special

    offers for existing subscribers. Tata Sky was selected as a SUPER BRAND for

    the year 2009-2010 by an independent and voluntary council of experts known

    as Super brands Council. It is the only Indian DTH to have won this distinction.

    Sun DirectSun Direct is a DTH satellite television provider in India, using MPEG-4 digital

    compression technology, transmitting using INSAT 4B at 93.5E. It is the

    country's first MPEG 4 technology DTH service provider. Sun Direct is a DTH

    service in India headquartered in Chennai, Tamil Nadu. Sun Direct TV was

    registered in February 16, 2005. However, the failed launch of INSAT 4C

    resulted in a lack of transponders, delaying the launch. The service was finally

    launched on December 2007 after availability of transponders from INSAT 4CR.

    Because of the lowest pricing of any DTH in India Sun Direct spread rapidly all

    over the country. On December Sun Direct was launched in Mumbai and

    announced its pan India launch. By 2009 it became leading DTH provider with 3

    million subscribers. This makes it 4th largest DTH service provider of India. In

    April 2009 Sun Direct officially launched its High-Definition service in India.

  • 7/31/2019 Logo 11111111111

    39/100

    Sun Direct uses the latest MPEG-4 based technology to increase broadcast

    capacity.

    Sun Direct provide next-generation services in fast-growing and emergingmarkets quickly and efficiently. Sun Direct selected Oracle based on its

    convergent multi-service capabilities and proven real-time scalability allowing

    it to consolidate billing operations, enables powerful new service offerings and

    improves visibility into customer information across services.

    BIG TV

    Reliance BIG TV is a DTH satellite television provider in India based in Navi

    Mumbai, using MPEG-4 digital compression technology, transmitting using

    MEASAT-3 91.5east. It is the 5th DTH service launched in India. Reliance BIG

    TV limited is a part of Reliance Communications Ltd., a subsidiary of Reliance

    Anil Dhirubhai Ambani Group founded by the Late Dhirubhai Ambani, the

    Indian business tycoon and owned by his son Anil Ambani. BIG TV started

    operations from 19 August 2008 with the slogan "TV ho Tho BIG Ho" ("If you

    have a TV, make it BIG"). It currently offers close to 200 channelsand many

    interactive ones, 32 cinema halls (i.e. Pay Per View Cinema Channels) as well as

    many Radio channels. The company plans to increase the number of channels

    in the near future to 400 and begin High Definition (HD) broadcast. It is the first

    Pan-India DTH provider that uses MPEG-4 for broadcasting. There are also

    plans to introduce services like i-Stock, i-News and other such interactive

    services in the future.

  • 7/31/2019 Logo 11111111111

    40/100

    Reliance BIG TV was launched on August 19, 2008 with the sole aim of

    providing the consumer with quality and enriched home entertainment service

    at value-driven pricing. Reliance BIG TV's launch in August was probably the

    biggest roll-out in home entertainment ever and deployed the most advanced

    MPEG4 technology that enabled them to deliver best quality digital audio-

    video to the consumer. It also got prepared for the future when Hi-Definition

    TV will be launched in India because only MPEG4 technology can support HD

    TV and not MPEG2 which is used by the earlier entrants in the DTH industry.

    Reliance BIG TV's retailer network is spread across 100,000 outlets in 6,500

    towns in India. This was literally unheard of in the DTH industry. They had

    effectively out-stripped the competition here. When it came to pricing

    packaging, their introductory offer stood at Rs. 1,490/- with 3 to 6 months of

    free subscription. They also introduced 32 Pay-Per-View Movie Channels, the

    highest by any DTH player.

    Airtel digital TV

    Bharti Airtel Limited is the flagship company of Bharti Enterprises and is

    Indias largest integrated and the first private telecom services provider

    with a footprint in all the 23 telecom circles. As India's leading

    telecommunications company, the Airtel brand has played the role of a

    major catalyst in India's reforms, contributing to its economic resurgence.

    Airtel since its inception has been at the forefront of technology and has

    steered the course of the telecom sector in the country with its world

    class products and services.

  • 7/31/2019 Logo 11111111111

    41/100

    Airtel Digital TV is a DTH (Direct to Home) service from Bharti Airtel. It uses

    MPEG-4 digital compression with DVB-S2 technology, transmitting using INSAT

    4CR 74E

    Airtel digital launched on 8 October, 2008 with a 360 degree mega campaign

    'Come Home to the Magic. Since then it has launched 2 other campaigns: Stars

    come home (March 2009) and DTH Picture Clarity

    (August 2009) has

    increased its channel base to 183+ channels. Airtel digital TV is now amongst

    the fastest growing DTH brands in the country and is available across 5000+

    towns in India. It has also been ranked as the best DTH service by Living

    Digital magazine.

    Airtel chief Sunil Mittal said that Airtel digital TV and other DTH players have a

    bright future in Indian market as the people are getting more attracted

    towards DTH because of its quality and affordability.

    Videocon d2h

    Videocon d2h is a DTH satellite television provider in India based in Mumbai,

    using MPEG-4 with DVB S2 digital compression technology

    Videocon Leasing & Industrial Finance Limited was incorporated on 4th

    September, 1986 as Adhigam Trading Private Limited. In terms of the

    necessary resolutions

  • 7/31/2019 Logo 11111111111

    42/100

    Passed under Sec. 21 of the Companies Act, 1956, the name of the Company

    was changed to Videocon Leasing & Industrial Finance Limited on 14th

    February, 1991. The Company received a fresh certificate of incorporation

    from the Registrar of Companies, Gujarat at Ahmedabad on 14thFebruary,

    1991.

    Videocon d2h launched May 1, 2009. it came with a very good strategy for

    selling both of its electronic products like TVs DVDs along with the new set

    top box. This is offering direct to TV with out any set top box also. Only the

    antenna is enough, it also came with DVD which is connected directly to the TV

    or antenna is connected to DVD which gives a best quality of out put.

  • 7/31/2019 Logo 11111111111

    43/100

    Chapter-

    2

    Product Lines And Consumer Behavior

    Range of products

    Set-Top-Box. Head-Antenna. Cable DVD Remote LCD TV/PLASMA TV/CATHODE RAY TV/LED TV

    Product description

    SET-TOP-BOX:

    The set top box comprises of the MPEG-2 OR MPEG-4 with DVB2 technology.

    Head-antenna:

    Antenna which receives signals directly from satellites,

  • 7/31/2019 Logo 11111111111

    44/100

    Cable:

    Cable connects antenna to the set up box

    DVD:

    One of the recent entrants into DTH industry is vediocon. This came with set

    top box with DVD

    ACCESS CARD:

    The access card is another important thing in the set top box setup

    Where the access card will receive the signals directly from satellite trough

    head top antenna

    LCD TV:

    Some companies are offering the whole set of LCD TV with DTH connection

    Ant in the case of cathode ray tubes and in case of PLASMA

    Remote:

    A compactable remote for both SET UP BOX and TV is used in operating both

    TV and Set top box.

  • 7/31/2019 Logo 11111111111

    45/100

    Complimentary Goods

    LCD TV, DVD, CT TV, Cables, plus box, Ups, Home theaters, sound box, plastic

    and paper which are used for recharge cards.

    Substitutes

    Local Cable Operators, Inter-Net which is bringing many facilities like live TV

    channels, along with the net browsing, Theaters, radio stations, I pods.

    Chapter-

    3

    Growth Of The Industry

    Rate of Growth

  • 7/31/2019 Logo 11111111111

    46/100

    The DTH service market in India has emerged as one of the most lucrative

    markets which have successfully resisted the impacts of the current economic

    slowdown. The slowdown has certainly proved a boon for the Indian DTH

    industry as people have now started to cut on their entertainment expenditure

    and instead of viewing movies at theatres, they are preferring to stay at home

    with their television sets.

    With the Indian economy growing at a GDP growth rate of 7.4%, there is a

    sense of growth prevailing every where. The average Indians disposable

    income and purchasing has risen to never before levels. The industry is

    anticipated to add nearly 5 Lakh subscribers per month during 2009 and the

    numbers are forecasted to surge further at a CAGR of around 30% through

    2012, "Indian DTH Market Forecast to 2012". 20% annual growth is being

    witnessed in the DTH sector in India with over 8.5 million households having

    digital pay-TV.

    A report attributes that the anticipated growth to the efforts of DTH industry

    players who are all trying to lure viewers by cutting down prices as well as

    offering perks even though it translates into loss of Rs 1,600-2,000 on each

    new subscriber acquired by them. They have started to offer a number of

    value-added services such as 'movie on demand', live recording of TV content,

    matrimonial match-making, etc.

    Pattern of Growth

    The big game is all about shaping up grandiose plans to master the winning

    rules to garner as much portion of the Indian DTH pie as possible by a handful

  • 7/31/2019 Logo 11111111111

    47/100

    of players. Since the DTH space denotes big value, akin to the space occupied

    by television and telephony, inter-firm rivalries have thrown up price wars,

    discount schemes, procurement of transponders, ambitious targets for

    improving the subscription base, popular bouquet of channels, set top boxes

    with superior quality of videos, improving content, etc as a desperate means to

    entice the Indian viewer.

    The pattern of growth is very difficult to determine because a business cycle

    takes place in long term. But this industry is having very short period for

    making or observing a business cycle.

    The analysis that can be made is though the economic cycles is not continues

    and it was in boom then when the industry started and now just the economy

    is in recovering stage from the recession. Interesting factor is that all the

    industries are hit seriously buy the rescission but DTH industry has reported

    growth continuously but only it has slowdown the rate of its growth. Now the

    industry is growing at 20% for every annum.

    Growth Determinants

    Demand constraints and SCAR are the factors which effects the growth of the

    industry. Growth determinant and high TV sales increase the chance for more

    sales of set top box which will effect the growth. When the facilities of the

    products increase it acts as a growth determinant.

  • 7/31/2019 Logo 11111111111

    48/100

    The entertainment channels and the news channels players increase the

    growth to opt the DTH. Some of the DTH players are bringing innovative plans

    like live shopping, broad band, and etc will act as growth determinants.

    Chapter-

    4

    Technology Of Production And

    Distribution

    Cost Structure

  • 7/31/2019 Logo 11111111111

    49/100

    The costs incurred by the DTH players is mainly on its technology, satellite dish,

    set top box accessory cards, Ku band transponders in the satellites, customer

    premise equipment(CPE). The launch of satellites is another huge cost which

    the DTH plays shares the transponders. And it costs them much than any thing.

    Another cost incurred is on operating cost.

    Economies of Scale

    Economies of scale may be utilized by any size firm expanding its scale of

    operation. The common ones are purchasing (bulk buying of materials through

    long-term contracts), managerial (increasing the specialization of managers),

    financial (obtaining lower-interest charges when borrowing from banks and

    having access to a greater range of financial instruments), and marketing

    (spreading the cost of advertising over a greater range of output in media

    markets).

    Cost Advantages

    1] Direct customer relationship.

    2] Better storage

    3] Extensive use of resources.

    4] Availability of labour at cheap rates

    Economies of Scope

    An economic theory stating that the average total cost of production decreases

    as a result of increasing the number of different goods produced.

  • 7/31/2019 Logo 11111111111

    50/100

    Often, as the number of products promoted is increased and the DTH players

    used, more people can be reached with each rupee spent. These efficiencies

    do not last, however; at some point, additional advertising expenditure on new

    products will start to be less effective (an example of diseconomies of scope).

    If a sales force is selling several products they can often do so more efficiently

    than if they are selling only one product. The cost of their travel time is

    distributed over a greater revenue base, so cost efficiency improves.

    There can also be synergies between products such that offering a complete

    range of products gives the consumer a more desirable product offering than a

    single product would. Economies of scope can also operate through

    distribution efficiencies. It can be more efficient to ship a range of products to

    any given location than to ship a single type of product to that location.

    Value added

    Many players are using this DTH as the basis and giving many value added

    services to the customers. Some of the players are giving best valued services

    to the customers like Airtel gives live-news, home shopping, live gaming, broad

    band, horoscope, radio, and etc. Tata sky is giving recording for more than 4

    hours, and came with a differential strategy of Tata sky+ with other facilities.

    Big TV is giving live with Big movies, Dish TV is giving live TV on the wheels, and

    many other value additions.

    Logistics

    Logistics is still a nascent and fragmented industry in India. It is estimated that

    while outsourced logistics accounts for 54% of total logistics spending in India,

    organized players have only 10% of the pie.

  • 7/31/2019 Logo 11111111111

    51/100

    DTH industry follows a good logistics which is as similar to the logistics which

    are used buy automobile industry, for the effective management of the DTH

    industry.

    Labour

    Labours are included in every activity of the business, most of the people

    working are not daily labours, they are employed and paid monthly in the form

    of salary. DTH requires skilled labor like management executives,

    administrators, software engineers, sales executives and attorneys.

    Chapter-

    5

    Marketing

    Market segmentation, marketing strategies, marketing practices and

    marketing concepts specific to the industry

    Indian TV channel broadcast 15.7-mn advertisement every year, which totals

    to 362-mn seconds of TV advertisement every year. India currently has over

    400 channels.

    TV viewer ship has declined by 5% since 2001. TV broadcasters are expected

    to go hike in advertisement rate this year by 16-18%. Market segmentation in

  • 7/31/2019 Logo 11111111111

    52/100

    DTH industry mainly concentrates on women who dont like missing their daily

    soap and news more ever women are able to learn English speaking which is a

    very special feature of DTH. DTH also concentrates on children also by

    providing them games, dictionary, some discovery videos specially inbuilt,

    maths, science and social knowledge. It also focuses on old people as it has

    updated videos of various holy and religious places.

    DTH uses different marketing strategies for promotion and sales of its product.

    It gives advertisements with their brand ambassadors which attract customers,

    door to door selling, on the phone selling, discount and offer sales, packages,

    etc

    Marketing practices is a continuous process as the competition keeps

    increasing among the players in the industry. Each player is investing lots of

    money in promoting there brands. Many players are making advertisement

    with movie actor and actress as brand ambassadors for their products because

    DTH is mainly considered with entertainment.

    Some of the companies like Tata sky is having Super Star Amir khan as brand

    ambassador and Airtel is having many film stars like kareena kapoor,

    A.R.Rehaman, saif ali khan, etc. Dish TV is also having Super Star Sharuk khan

    as the brand ambassador.

    Sun direct also uses southern actress for their brand promotion. Marketing

    practices are the decisions taken by the manufacturing company to increase

    sales, expand themselves into many areas etc. Successful marketing practices

    bring sale up, while unsuccessful marketing practices have no impact on sale or

    negatively impact sale.Marketing concepts specific to the industry is primarily

  • 7/31/2019 Logo 11111111111

    53/100

    targeted at a niche segment who buy the TV sets from the electronic retail

    chains.

    Chapter-

    6

    Innovation

    Types of innovation, concepts of innovation relevant to the industry, source of

    innovation, rate of innovation and economies of scale.

    The concept of innovation in DTH industry is INCREMENTAL innovation; every

    thing that is done is due to constant research of many marketing and analysts

    to bring many innovations to the existing products in the DTH industry.

    Incremental innovation is the apt innovation which is suitable and all the DTH

    players are concentrating up on.

    This innovation makes the business to grow continuously and brings

    advantages to the customers using the products and the service.

    There are many sources of innovation for this industry as mentioned in the

    above, the technology and the people are the main sources for the innovation.

    Customers opinions and their needs can be served by providing a service

    which is matching to their needs and requirements. In this days every

    company setups its own R&D in its own company with very intelligent people

    for meeting the expectation op the customer.

  • 7/31/2019 Logo 11111111111

    54/100

    Digital TV, the DTH service from Airtel, has announced Indias first skin

    integration innovation on its EPG screen in partnership with Yahoo. Yahoo

    takes forward its latest brand campaign YOU in this first of its kind

    partnership where an online portal will use DTH as a medium to promote itself.

    The Electronic Programming Guide screen on Airtel digital TV is now

    completely integrated with Yahoo Indias homepage. Customers will find a

    message Fill your home page with all the things that make YOU when they log

    onto to the EPG screen. A prompting Red Button will take them to a

    dedicated landing page that elaborates the offerings on Yahoo Indias new

    home page. The YOU campaign enables users to customized the home page

    as per their liking and empowers them with the choice to integrate social

    applications such as Facebook with their Yahoo homepage. This whole idea

    was conceived by NetworkPlay, right from design elements to execution and

    thanks to Mindshare for buying into the idea and flawlessly helping people

    execute it.

    Tata Teleservices Limited has announced a technological breakthrougha

    first-of-its-kind innovation in India with the launch of TATA Photon TV, a new

    application that allows Tata Photon Plus subscribers to watch live television

    channels on their laptops while on the move, and on their personal computers

    at home and in the office. The Photon TV service is exclusively available to

    Photon Plus users. With its growing popularity, Photon Plus has caught the

    admiration of millions of users across the country, with its high-speed data

    access capabilities and the ease of mobility.

  • 7/31/2019 Logo 11111111111

    55/100

    TATA Photon TV is a personal computer- and laptop-based video-streaming

    application, which allows Tata Photon Plus users to view live TV feed from

    various sports, news, entertainment and regional channels, and to watch

    recorded TV shows from the library (viz Coffee with Karan, Zoom, Pogo, etc),

    movies, music and videos on demand.

    Internet Browsing charges will be charged as per your Photon+ tariff plan and

    it would be applicable while viewing Photon TV. These charges would be over

    and above the subscription charges for the Photon TV. (approximate data

    usage is 1-2MB per Min).

    Rate of innovation in this sector is growing at a faster rate in the recent years

    where as it is not very impressive before this period. The reason for this is the

    fair competition between the all players in this DTH industry. It led to the

    development of new products in this sector which also led to the

    diversification of products as there is abolition of entry of foreign industries

    into Indian industries initially. It also made the industries in this sector to

    establish their own R&D departments for successful product innovations like

    Airtel Live, Vediocon d2h.

    The brand loyalty for each and every company is very high, so there is no need

    of lot of costs to be pored in marketing and promotion of the service and

    product.

    Every function that is performed by the players is a well planned and executed

    properly.

  • 7/31/2019 Logo 11111111111

    56/100

    So in all the areas those players are using the expertise people in the industry

    and performing operations in DTH industry very economically.

    Chapter-7

    Strategies And Competition In The

    Industry

    Competitors, Strategies used in the industry, Porters generic strategies model,

    porters five forces model and analysis using it, element of industry structure,

    porters value chain model analysis, swot analysis, concept of generic value

    chain, concept of growth share market matrix, company position .

    Competitors

    Every company has its own goal, every company wants to achieve and full fill

    its goals, many companies like the big players in the industry wants to grab

    most of the market share. Some of the companies want to achieve 10million

    customer base by 2010 they are Dish TV, Tata sky, Sun direct, BIG TV etc.

    The industrys objective is to achieve 60million customers buy 2012 i.e.,

    nearly 50% of the present existing customers.

    Strategies used in the industry

  • 7/31/2019 Logo 11111111111

    57/100

    Technology transfer is one of strategy used in the industry and it is existence

    for a long time. In recent decades, concerted effort has been made to exploit

    the existing technology to a larger extent by transfer of technology, to

    generate greater economic impetus. It provides opportunity to generate larger

    returns on the investments made in R&D. Its importance lies in its ability to

    stimulate and strengthen the innovation process.

    Porters generic strategies model

    Generic strategies were used initially in the early 1980s, and seem to be even

    more popular today. They outline the three main strategic options open to

    organization that wish to achieve a sustainable competitive advantage.

    The generic strategies are: 1. Cost leadership, 2. Differentiation, and 3. Focus

    1. Cost leadership

  • 7/31/2019 Logo 11111111111

    58/100

    In the case of media products, means they should be offered at a price lower

    than their competitors but with as good benefits, or, the unique benefits the

    media products offer can over-offset the premium.

    2. Differentiation

    Differentiation in DTH refers to when a organization provides unique benefits to the

    users through product innovation. This is to increase the probability of the media users

    to choose the product. A media organization with a target user loyalty can

    concentrate more on how to fully meet the target users needs rather than on

    product cost saving.

    3. Focus

    Focus strategy is also known as a 'niche' strategy. The clutter of ads has now

    spilled out on the number of channel availability due to which people are spoilt

    for choice. Thus Niche channels are the only way to maintain viewer loyalty.

    TATA Photon plus is more niche oriented.

    SWOT Analysis

    STRENGHT

    Growing number of player and competitive advantage.

    Supply creates its own demand.

    Brand name

    Service and flexibility.

  • 7/31/2019 Logo 11111111111

    59/100

    WEAKNESS

    Skilled labour

    Satellite technology

    Signals

    Viewer migration.

    Uncertainty in viewer ship.

    OPPORTUNITY

    Technology

    Distribution

    Innovation

    Value adding

    THREAT

    Economic downturn.

    Climate

    Radio

    Cinema halls

    Broad casting of channels

  • 7/31/2019 Logo 11111111111

    60/100

    New entrants

    Porters five force model

    The five forces which one must consider to analyze any industry are the rivalry

    between the firms within the industry being analyzed, the bargaining power of

    buyers, the bargaining power of suppliers, the threat of substitute products or

    services, and the threat of new entrants (also known as barriers to entry). They

    are also shown in the diagram below. Initially propounded by Harvard Business

    School Professor Michael Porter, the Five Forces framework has been accepted

    as a strategic framework which one can apply to analyze any industry.

    Threat of substitutes

    DTH gives stiff competition from the terrestrial, cable & IPTV. As per the

    industry estimates, there are 130 million TV homes of which 71 million are

    http://www.franteractive.com/strategy/Porter-Barriers-to-Entry.htmlhttp://www.franteractive.com/strategy/Porter-Barriers-to-Entry.html
  • 7/31/2019 Logo 11111111111

    61/100

    served by cable and around 6 million served by DTH with the remaining taken

    by terrestrial transmission. As IPTV is a new entrant there is not much data on

    its subscriber base.

    Bargaining power of suppliers

    DTH industry relies on three major suppliers. Customer premise equipment

    (CPE)

    Comparing of the satellite Dish, Set Top Box with the necessary Access Card,

    the Ku band transponders are obtaining satellites and content. With India set

    to overtake Japan as Asias largest DTH by next year, the bargaining power of

    India DTH operators with CPE suppliers have been steadily increasing.

    Bargaining power of buyers

    With enough operations to choose both from the point of alternate mediums

    like cable, IPTV and terrestrial broadcast and from the point of increasing DTH

    operators, the consumer is at his will to decide. Customers will continue to

    have a high bargaining power until DTH platforms try to differentiate them as

    superior players with better content and clarity.

    Rivalry among existing firms

    With 3 operational players and 4 players in the queue, inter firm rivalry is quite

    high.

  • 7/31/2019 Logo 11111111111

    62/100

    The competition from state owned DD-Direct to private players in negligible

    from the content point of view as the number of channels offered by DD-Direct

    is very limited. However, DD-Direct does not change any monthly subscription

    charges. Between Dish TV is Tata Sky there is an intense rivalry exhibited by

    price war and discount schemes offered to new connections. Being the first

    mover, dish TV had price advantage in both the STB offers superiors DVD

    quality Video to its advanced STB.

    While Dish TV is planning to spend Rs. 850crs over the next 3 years, the rival

    TataSky is willing to spend Rr.2000crs over the medium term. The companies

    have also set ambitious targets with Dish TV aiming to reach 5 million

    subscribers in the next 18 to 20 months while Tata sky aiming to reach

    8million subscribers in the next 18 to 20 months while Tata sky aiming for 8

    million subscribers by 2012.

    Threat of new entrants

    With already 7 players space in the DTH space, threat of new entrants is low.

    There is already enough competition which will discourage new firms to enter

    this business. While getting a licensee is relatively easy, the barriers to entry

    are high when it comes to pricing of CPE and getting the required transponder.

    There is a definite, first mover advantage.

    Analysis of the Industry using Porters value chain model

  • 7/31/2019 Logo 11111111111

    63/100

    Porters value chain analysis is considered with the value analysis of the several

    functions of the DTH industry, it makes to understand the importance of this

    model to develop and add on value to the present features of the industry and

    its functioning.

    Value analysis says that an effective logistics should be undertaken to

    commencement of the business in cost effective way. The most the cost

    effective, the more value is added to the process. It is noting but proper or

    optimal use of the resources present and using the technology. This value

    addition is not only in the logistics, it should be carried in all areas of the

    management, production, distribution and etc. Thus DTH industry can increase

    its value addition to the customers and the features and of industry.

    Concept of growth share matrix (BCG model)

    The BCG GROWTH SHARE MATRIX is a portfolio planning model developed by

    Bruce Henderson of the Boston Consulting Group in the early 1970's. It is

    based on the observation that a company's business units can be classified into

    four categories based on combinations of market growth and market share

    relative to the largest competitor, hence the name growth share.

  • 7/31/2019 Logo 11111111111

    64/100

    Under the BCG GROWTH-SHARE MATRIX, as an industry matures and its

    growth rate declines, a business unit will become either a cash cow or a dog,

    determined solely by whether it had become the market leader during the

    period of high growth. While originally developed as a model for resource

    allocation among the various business units in a corporation, the growth-share

    matrix also can be used for resource allocation among products within a single

    business unit.

    In the DTH industry when the market share is obtained then it is automatically

    treated as the market leader, and also it needs maximum market share to

    extent, when the market is not in incremental state then the growth rate of

    the industry will retain. Again this industry follows all the variables in the all

    areas till the both will come into normal level.

  • 7/31/2019 Logo 11111111111

    65/100

    Chapter-8

    Critical Success Factors

  • 7/31/2019 Logo 11111111111

    66/100

    Appendices

    MEDIUM 2008

    TV 40.7

    PRESS 46.9

    RADIO 3.2

    CINEMA 0.7

    OUTDOOR6.8

    INTERNET 1.7

  • 7/31/2019 Logo 11111111111

    67/100

    GROWTH RATE OF ADVERTISEMENT REVENUE IN DIFFERENT MEDIUM:

    Medium Year of growth in 2008(%)

    TV 22

    Press 18

    Radio 40

    Cinema 50

    Outdoor 14

    Internet 45

    Total 20

  • 7/31/2019 Logo 11111111111

    68/100

    Indian TV channel broadcast 15.7-mn advertisement every year, which totals

    to 362-mn seconds of TV advertisement every year. India currently has over

    400 channels.

    TV viewer ship has declined by 5% since 2001. TV broadcasters are expected

    to go hike in advertisement rate this year by 16-18%.

  • 7/31/2019 Logo 11111111111

    69/100

    MARKETSURVEY AND

    MARKET

    RESEARCH

  • 7/31/2019 Logo 11111111111

    70/100

    How many dealersare dealing with

    Videocon d2h ?

  • 7/31/2019 Logo 11111111111

    71/100

    Yes 55

    No 45

    55%

    45%

    Market share

    yes

    no

  • 7/31/2019 Logo 11111111111

    72/100

    Would you be

    interested in dealing

    with Videocon D2H ?

    Yes 65%

    No 35%

    MayBe

    0%

  • 7/31/2019 Logo 11111111111

    73/100

    Which of the following

    brands is the first

    choice of the customer

    ?

    0

    10

    20

    30

    40

    50

    60

    70

    yes no may be

    Series1

  • 7/31/2019 Logo 11111111111

    74/100

    Videocon

    d2h05%

    Tata Sky 70%

    Dish Tv 10%

    Airtel Digital

    Tv

    15%

    Series1

    Series20

    20

    40

    60

    80

    Videocon

    d2hTata Sky

    Dish TvAirtel

    Digital Tv

    Series1

    Series2

  • 7/31/2019 Logo 11111111111

    75/100

    Which of the following

    brands do you think

    has the best margin ?

    Videocon d2h 05%Tata Sky 40%

    Dish Tv 40%

    Airtel Digital

    Tv

    15%

  • 7/31/2019 Logo 11111111111

    76/100

    Which of the followingbrands has the best

    after sales service ?

    0 10 20 30 40

    Videocon d2h

    Tata Sky

    Dish Tv

    Airted Digital Tv

    Series2

    Series1

  • 7/31/2019 Logo 11111111111

    77/100

    Videocon d2h 0%

    Tata Sky 70%

    Dish Tv 05%

    Airtel Digital

    Tv

    25%

    0

    10

    20

    30

    40

    50

    60

    70

    Videocon

    d2h

    Tata Sky Dish Tv Airtel Digital

    TV

    Series2

    Series1

  • 7/31/2019 Logo 11111111111

    78/100

    Which of the following

    brands do you think

    has the best name in

    DTH service ?

    Videocon d2h 0%

    Tata Sky 74%

    Dish Tv 04%

    Airtel Digital

    Tv

    22%

  • 7/31/2019 Logo 11111111111

    79/100

    What is the perception

    about the brand

    videocon D2H ?

    Series1

    Series20

    0.2

    0.4

    0.6

    0.8

    Videocon d2hTata Sky

    Dish TvAirtel Digital

    Tv

    0%

    74%

    4%22%

    Chart Title

    Series1 Series2

  • 7/31/2019 Logo 11111111111

    80/100

    Very Good 0%

    Good 50%

    Average 30%

    Below

    Average

    20%

    0000

    0

    50

    30

    20

    Market Share

    Very Good Good Average Below Average

  • 7/31/2019 Logo 11111111111

    81/100

    Which of the following

    brands gives you the

    most sales volume in

    DTH service ?

    Videocon d2h 20%

    Tata Sky 30%

    Dish Tv 20%

    Airtel Digital

    Tv

    30%

  • 7/31/2019 Logo 11111111111

    82/100

    Having a good brand

    value in home

    appliances &

    electronics / and best

    0

    5

    10

    15

    20

    25

    30

    35

    Videocon d2h Tata Sky Dish Tv Airtel Digital Tv

    Series1

    Series2

  • 7/31/2019 Logo 11111111111

    83/100

    aesthetics in satellite

    TVs , to what extant

    Videocon d2h will be

    accepted by the

    customer ?Very Good 0%

    Good 45%

    Average 20%

    Below

    Average

    35%

  • 7/31/2019 Logo 11111111111

    84/100

    Is recording featurerequired for customer

    ?

    0

    5

    10

    15

    20

    25

    30

    35

    40

    45

    50

    Very Good Good Average Below Average

    Series2

    Series1

    Yes 15%

  • 7/31/2019 Logo 11111111111

    85/100

    Series1

    0

    10

    20

    30

    40

    50

    60

    70

    Yes NoMay Be

    Series1

    No 70%

    May Be15%

  • 7/31/2019 Logo 11111111111

    86/100

    Feedback of customer

    about brands?

    Videocon D2H

    Very Good 0%

    Good 50%

    Average 30%

    Below

    Average

    20%

  • 7/31/2019 Logo 11111111111

    87/100

    Tata Sky

    Very Good 90%

    0

    10

    20

    30

    40

    50

    60

    Very Good Good Average Below Average

    Series2

    Series1

  • 7/31/2019 Logo 11111111111

    88/100

    Good 10%

    Average 0%

    Below

    Average

    0%

    Very Good

    Good

    Average

    Below Average

  • 7/31/2019 Logo 11111111111

    89/100

    Dish Tv

    Very Good 20%

    Good 75%

    Average 5%

    Below

    Average

    0%

    Series1

    Series20

    10

    20

    3040

    50

    60

    70

    80

    Very GoodGood

    AverageBelow

    Average

    Series1

    Series2

  • 7/31/2019 Logo 11111111111

    90/100

    Airtel Digital Tv

    Very Good 60%

    Good 30%

    Average 10%

    Below

    Average

    0%

  • 7/31/2019 Logo 11111111111

    91/100

    Objectives ofSummer Training

    0

    10

    20

    30

    40

    50

    60

    70

    Very Good Good Average Below Average

    Series2

    Series1

  • 7/31/2019 Logo 11111111111

    92/100

    ~ To make students aware of market where

    exactly

    They have to work (real work situation).

    ~ To create awareness in the students about

    their

    Strength & weakness.~ To take actual feel of the environment in

    which

    Students have to survey

    ~ To observe actual challenges they have to

    face in

    Future in their stream they are adoting

    for(specil

    Isation).

  • 7/31/2019 Logo 11111111111

    93/100

    RECOMMENDATIONN

    & SUGGESTIONS

    a) Videocon holds good value in homeappliances in market thus it gives positive

    result in DTH also.

    b) Videocon d2h should improve its aftersales service so that`s it can hold its

    potential customer & attract more.

  • 7/31/2019 Logo 11111111111

    94/100

    c)Proper advertisement require to createmore awareness in market & customer.

    d) Proper addressability is required forthe product.

  • 7/31/2019 Logo 11111111111

    95/100

    BIBLOGRAPHY

    As we are on end of the project report so in

    completion the project report following references

    are considered

    a)www.google.comb)www.wikepedia.comc)www.yahoo.comd)www.videocon.come)www.videocond2h.com

    http://www.wikepedia.com/http://www.wikepedia.com/http://www.yahoo.com/http://www.videocon.com/http://www.videocon.com/http://www.videocond2h.com/http://www.videocond2h.com/http://www.videocond2h.com/http://www.videocon.com/http://www.yahoo.com/http://www.wikepedia.com/
  • 7/31/2019 Logo 11111111111

    96/100

    Details about Dealers

    ~ Name of the Dealer :- ...

    ~ Address/ Contact no :-...

    ...

    ~ Monthly Turnover :-..

  • 7/31/2019 Logo 11111111111

    97/100

    Dealing in brands :-

    Videocon D2H

    Tata Sky

    Dish TV

    Airtel Digital TV

    ~ Mode of purchage :- a) Direct ..

    b) From distributer ..

    Questionnaire for Dealer

    ~ Are you dealing with Videocon D2H ?

    1) Yes2) No

    ~ Would you be interested in dealing with Videocon D2H ?

    1) Yes2) No3)

    May be

  • 7/31/2019 Logo 11111111111

    98/100

    ~ Which of the following brands is the first choice of the customer ?

    1) Videocon D2H2) Tata Sky3) Dish TV4) Airtel Digital TV

    ~ Which of the following brands do you think has the best margin ?

    1) Videocon D2H

    2) Tata Sky

    3) Dish TV

    4) Airtel Digital TV

    ~ Which of the following brands has the best after sales service ?

    1)

    Videocon D2H2) Tata Sky3) Dish TV4) Airtel Digital TV

    ~ Which of the following brands do you think has the best name in DTHservice ?

    1) Videocon D2H2) Tata Sky3) Dish TV4) Airtel Digital TV

    ~ What is the perception about the brand videocon D2H ?

  • 7/31/2019 Logo 11111111111

    99/100

    1) Very Good2) Good3) Average4) Below Average

    ~ Which of the following brands gives you the most sales volume in DTHservice ?

    1) Videocon D2H2) Tata Sky3) Dish TV4) Airtel Digital TV

    ~ Having a good brand value in home appliances & electronics / and bestaesthetics in satellite TV`s, to what extant Videocon d2h will be accepted by

    the customer ?

    1) Yes2) No3) May be~ Is recording feature required for customer ?

    1) Yes2) No3) May be

    ~ Feedback of customer about brand ?

    Videocon D2H

    1) Very Good2) Good3) Average4) Below Average

  • 7/31/2019 Logo 11111111111

    100/100

    Tata Sky

    1) Very Good2) Good3) Average4) Below Average

    Dish TV

    1) Very Good2) Good3) Average4) Below Average

    Airtel Digital TV

    1) Very Good2) Good3) Average4) Below Average