A Project on Videocon Mobiles

By,Yash Jainani

VIDEOCON

COMPANY DESCRIPTION:Videocon is an industrial conglomerate with interests

based all over India. The company has an annual turnover of US$4.1 billion which makes it one of the largest consumer electronics companies in India. Videocon has expanded its operation globally since 1998 especially in the Middle East .Following its expertise in the consumer electronics, the company has decided to launch its new line of Mobile phones in India.

The group has 17 manufacturing sites in India and plants in China, Poland, Italy and Mexico. It is also the third largest picture tube manufacturer in the world. Today the group operates through four key sectors:

•Consumer electronics•Mobile Phones•DTH

Mobile Market in India

Venture into the fiercely competitive market with players like Nokia, Samsung, Micromax ,Lava and other leading brands will bring some Indian flavour to the market. The number of mobile users around the world is rising dramatically, especially in fast growing markets like India. Success in high-growth markets is not only good news for Videocon business, but for people in our country who are discovering the benefits of mobile communications in their lives and even their livelihoods. This is already clear from the phenomenal success of camera phones as well as the growing use of phones, not just for making calls, but also for computer-like applications such as email, web browsing and music downloading. Considering the current market situation in India where the GSM platform dominates over the CDMA platform the Videocon mobiles is based on the GSM technology. The company has to establish itself in the mid range segment that is in between INR 2000 –INR 7000 The main emphasis will be on youth and general public.

TARGET MARKET:Videocon Industries is eyeing a growth of 35-40% in

terms of value . It plans to achieve the desired growth by introducing new product lines, various offers and revamping its service centres across 20 cities. As the consumer gets conscious about spending money, at present the demand is high for mid segment product line-up . The focus for Videocon Group is rural markets and major growth is going to come from these markets. The group has recognized high Market Potential Value(MPV) and future prospects to strengthen the business operations and reach the consumer .

MAJOR SEGMENT:Major segments are basically those people who belong

to middle and lower middle class families There are so many people who purchase mobiles as it is a kind of basic mode of communication. So, their basic segments are those people who take this electronic product. The basic segment are Rural and Semi Urban area where many people like to buy the electronic product.

Entry level Entry level phones are those phones which are in the range of

Rs. 2500 – Rs. 6500.the phones carry high features within this price range only.

Market Leader

Currently Nokia is a clear leader of the overall Indian mobile handset industry - both in value and volume terms respectively. This is with reference to an article in business today: GfK-Nielsen's Urban data covers 793 cities and towns each with

population more than 50,000, while its All India coverage is of 4,378 cities and towns and 586,000 villages. 

Nokia leads Samsung by 1.4 percentage points in All India market share (31.7 per cent vs. 30.3 per cent) in March 2012. According to the All India data from GfK-Nielsen for March 2012,

http://businesstoday.intoday.in/story/nokia-samsung-phone-war/1/24553.html

OBJECTIVE of the research should be : To study the Quality of the product manufactured by

Videocon mobiles To find out the frequency of purchasing and reasons for

preferring the Videocon mobiles. To study the awareness about Videocon rating in

comparison to the other company's phones. To determine various factors which satisfy the consumers. To study the factors which satisfy the consumers most

about Videocon phones.

SCOPE OF Project About Consumer Behaviour:- It includes the study of what people Buy ,Why they buy , when they

buy, where they buy from, how often they buy, and how often they use it.

Looking forward, the Indian handset market is estimated to grow at a compounded annual growth rate of 10.7 per cent during the period of 2011-17, with total handset volume expected to reach 335 million units by 2017, according to ABI Research, a US-based market intelligence company specializing in global connectivity and emerging technology.

FACTOR AFFECTING SALES:There are many factors, which affects the sales of Videocon. To name a few:

1.Per capita income2.Competitors3.Festival time (like Diwali)

RESEARCH METHODOLOGY

Here both Primary and Secondary data are gathered Primary information are the data that are collected from

the following sources

Survey done in Delhi. Dealer & distributors of Videocon at Delhi. Users & Non-users of Videocon phones in Delhi(60 customers and 25 dealers filled the Questioner)

The secondary data are the information about company and its product that are available on its website or on other source

Market ResearchQuestionnaire(Customer based)

1.Which is the bestselling brand at retail outlet(within the price range of Rs.2500-6000)

According to customers There is touch competition between Samsung ,micromax and nokia

According to an article in The Mobile Indian, New Delhi, July 04, 2012 Nokia is King in the below Rs 5,000 handset market

As Samsung n nokia is having good brand awareness n good product quality at the same time micromax with its competitive price n good quality product with variety is giving tough competition to these two brands in this segment

2.Best selling handset in each categorya.Entry level (Rs.2000 and below): Tough competition among the

domestic brandb.Mid-level (Rs.2000 – Rs.7000):Nokia(The Mobile Indian)c.High end/Smartphones(Rs.7000-and above):Nokia and

Samsung

3.Demographics(Age/sex/income) and psychographic profile(attitude, behaviour) of the buyer?

Age group who buys these segment mobiles are ether youngsters or married men between the age group of 20 to 30 .

Customers try to buy a mobile which have high features n low cost Most of the people are unaware of the price range n the product n

features of the mobiles Videocon mobiles are mainly used as a secondary mobile for

middle class family and as a main mobile for the lower middle class family

Google partnered with IPSOS and the MMA (Mobile Marketing Association) to understand the very behavior and gain a greater insight of purchasing smart phones. The research showed that the usage of phone between the age group of 18- 29 is the highest.

Attributes of Purchasing

Many people decide after taking a demo of the mobile Some take suggestions from frinds,relatives etc. After watching the adds Because of the features of the phone Because of the design(QWERTY/Touch/Bar) Price factor An article in AFAQS on Tuesday, April 26, 2011 says that “Phone

user study shows mobile movement under way” under this it has mentioned :

71% of phone users search because of an ad they’ve seen either online or offline;

82% of phone users notice mobile ads,

4. Features sets that a buyer looks forward to in each category?

OS: AndroidCamera: Minimum 2 MPDesign: Mostly touch or QWERTYWi-Fi: Yes preferred

3G: Yes preferred

Top 5 features phone according to The Mobile Indian are Micromax Superfone Ninja A50 ,Nokia Asha 200,Samsung Chat

527,Motorola Quartz EX212,Nokia C2-03.

5.New launches by the following brands and their response-

Nokia: Lumia 610Samsung: Metro 2252Spice:Flow seriesVideocon: Touch ka tashanMicromax: Aisha

6.Which all brands does customers have in mind when he comes to buy a handset under particular category?

Most people have brands like Nokia ,Samsung ,Micromax in there mind.

7.Does the customer comes pre decided to buy a particular phone or decide over the counter?

Customers have a set of 3 to 4 mobiles in mind before coming to purchase it . then they take a demo of all the mobiles and try some new mobiles suggested by the shopkeeper and to decision

If the Videocon mobiles are present in shops and given a demo about its features then the sales may increase.

8.Which category sells the most at retail outlet and why?

Touch n qwerty design cell phones are more in demand as they are stylish and more convenient

As touch is more for gamming and stylish types and QWERTY is more of a business phone types.

9.How many cell phones have you changed in the last 5 years?

Most of the people using the cell phones in this segment changes their phone 2 to 3 times in 5 years

This shows that avg usage time of a mobile in this segment is 1.5 to 2 years.so there are chances of more sales.

10.Next time would you buy the phone of the same brand?

Yes42%

No25%

Depends on new launch33%

Resopnse

YesNoDepends on new launch

Research Questions(Dealer based)

1.Are u satisfied with Videocon advertisement ?

Satisfied48%

Not satidfied40%

None12%

Dealer Response

SatisfiedNot satidfiedNone

2.Which kind of advertisement would u prefer ?

TV Adds48%

Radio Adds12%

Paper Adds20%

Out-door Adds20%

Dealer Response

TV AddsRadio AddsPaper AddsOut-door Adds

3.Are you satisfied with Videocon product price range ?

Yes80%

No20%

Dealer Response

YesNo

4.Are you satisfied with the after sales service of Videocon

Yes64%

No36%

Dealer Response

YesNo

DATA ANALYSIS & INTERPRETATION

STRENGTH 1.Videocon has excellent brand awareness but fail in case of mobiles. 2.Price of the Videocon is quite satisfactory to the people 3.Better product range

WEAKNESS 1.They need to increase the quality of the product 2.Poor in product body designing as compared to Nokia& Samsung 3. Distribution channel is not proper The mobiles are not available at its own store that is in planet M The dealer themselves don’t uses banners or pamphlets for promotion of

Videocon in there shops.(not much attention given to it)

Observation In The Market

Customers try to buy a mobile which have high features n low cost Videocon mobiles are economic in price No proper advertising or promotion of Videocon is done where as

promotion of other brands like nokia ,Samsung ,spice etc the promotion is done properly

Nokia,Samsung,spice have its own individual showroom in almost all the markets

Not much difference between Chinese n domestic brand mobiles n Videocon mobiles .the advantage of Chinese mobiles is that they have extra speakers or high volume speakers in each mobile where Videocon lack.

Nokia ,Samsung, spice, micromax ,lava,karbon are available in most of the mobile shops in the market

Domestic handset makers such as Micromax, G'Five, Karbonn, Spice, Maxx and Lava, have a strong presence in the Indian market and have kept themselves ahead of many of the big players due to their feature-rich, localized products at much lower price points.

Videocon mobiles are available in very rare mobile shops . on an avg 2 or 3 shops in every market

Videocon mobiles are mainly used as a secondary mobile for middle class family and as a main mobile for the lower middle class family

Most of the people are un aware of the price range n the products n features of the mobiles

Age Group

Google partnered with IPSOS and the MMA (Mobile Marketing Association) to understand the very behavior and gain a greater insight of purchasing smart phones. The usage of phone between the age group of 18- 29 is the highest. The phone is no longer just a means of making calls and sending sms, the survey identifies that people today use their phones to search, follow news, listen to music, connecting with family and friends. However, while some might be tech savvy utilizing their smartphone features to the max, there are many who still use their phones for basic needs. 

Customers Consumer targets are high school ,college and graduate students who

need one portable multifunction device . The consumer targets would be the middle-upper income professional to coordinate their busy schedules and communicate with colleagues, friends and family.

Customers try to buy a mobile which have high features n low cost

Phones have become an integral part of user’s daily lives: Consumers use phones as an extension of their desktop computers and use it as they multi-task.

A comparison of Internet usage on cell phone versus desktop reveals that 56% of phone owners in India prefer accessing Internet multiple times a day through their phones

78% of smartphone owners indulge in searching from their device, 77% of smartphone users in India like listening to music on their

phones 33% enjoy playing games.

From http://www.gstatic.com/ads/research/en/2011_TheMobileMovement.pdf

Features a Mobile Should Have In This Segment:

Internet capabilities through Wi-Fi with a 3G speed High-Resolution Camera. Battery Power is one of the important feature among

subscribers. FM Radio,MP3/MP4 can now be transmitted through a handset. Memory space should be high and removable.

Brands in entry level phones and Competitors of Videocon Mobiles are:

Nokia Samsung Micromax Karbonn Spice Lava Videocon LG Motorola

To gain a competitive edge over the competitors we should know the features of our product as well as the competitors product also.

So here some of the features of Videocon mobiles as well as its competitors

VIDEOCON MOBILES FEATURES•All the cell phones have Bluetooth•Very few of them have Wi-Fi , 3G , Android .•All are dual sim, with one triple sim•Camera : 1.3 ,2 MP(some of them have VGA)• Design : Touch ,Qwerty , Normal•Touch & type , Touch&qwerty designs are missing• Most of the mobiles are in price rang of Rs.2500-Rs.4500•Minimum price of designs :

Touch – Rs.2500-3000Bar – Rs.2500Qwerty- Rs.3000

•Loudspeaker phones available

Nokia

OS: Symbian ,Java Camera – 2,3 MP Most of the mobiles are in price rang of Rs.2500-4000 Phones with Single sim and dual sim both are available Features available: Wi-Fi with 3G , only 3g, only Wi-Fi Design like Touch and type slider also available Phones with Loud speakers are less Minimum price : Wi-Fi with 3G ,single sim,QWERTY design&normal design –

Rs.5800 Wi-Fi qwerty ,normal design, single sim-Rs.3500 3G qwerty , normal design, single sim – Rs.3500

Samsung

OS: JAVA Most of them are single sim cell phones Most of the mobiles are in price rang of Rs.4000-Rs.6000 One touch and type design phone is available Camera –VGA,1.3,2,3 MP No loud speaker phones are available Minimum price :

Wi-Fi with 3G Design(Normal-Rs.4500,Rs.Touch-5000)Wi-Fi with Normal Design –Rs.40003G Normal Design-Rs.3200

Micromax Minimum price :

3G with Normal design-Rs.4500Wi-Fi with Touch&Qwerty Design +dual simRs.4500Wi-Fi with Touch Design+dual sim-Rs.50003G &Wi-Fi with Qwerty design+ dual sim-Rs.37003G &Wi-Fi +Android (OS) and Dual sim +Touch Design-Rs.5000

Not much loud speaker phones available Phones with designs like :Touch&qwerty , Slider&qwerty are available Most of the mobiles are in price rang of Rs.3500-Rs.5000 One phone with feature of gravity sensor also available GSM+CDMA phone available

Spice

Minimum price :Wi-Fi with dual sim and Touch design-Rs.40003G with dual sim and Qwerty design-Rs.5000Wi-Fi &3G with Android(OS) +dual sim and Touch design-

Rs.5200Optical track pad with dual sim and Qwerty Design-Rs.4300Wi-Fi with Android(OS)+ Dual sim and Touch Design-Rs.3500

Most of the mobiles are in price rang of Rs.3500-Rs.5000 OS-Android,JAVA Few loud speaker phones are available Most of the phones are Touch &Qwerty design phones Camera -2,3MP

Karbonn

Only one Wi-Fi phone No 3G phones Touch & type design available Camera – 2 , 3 mp Most of the mobiles are in price rang of Rs.2500 –Rs. 4000 OS – JAVA Minimum price of Wi-Fi phone - Rs.5500

LAVA Android phones are missing OS – JAVA Most of the mobiles are in price rang of Rs.3000-Rs.4500 Loud speaker phones available No 3G phones are there Minimum price :

Wi-Fi +speaker phone with Normal design –Rs.4500Wi-Fi with Double sim+ Normal Design-Rs.5000Wi-Fi with Qwerty design -Rs.4000

LG No loud speaker phones available Most of the mobiles are in price rang of Rs.4000-Rs.6000 Touch & type design Phone are missing Only JAVA OS are available Camera – 1.3,2,3 MP Minimum price :

Wi-Fi with design (QWERTY-Rs.3600,Touch -Rs.5000)Wi-Fi &3G with design

(Normal dual sim-Rs.4400,singlesim Touch-Rs.4400)3G with slider design single sim –Rs.4000

Motorola Minimum price :

Wi-Fi &3G with single sim and Qwerty design – Rs. 6000Wi-Fi with dual sim and Qwerty Design – Rs. 5500

OS: JAVA Loud speaker & Normal designed phone missing Not much phones are available

Sony Not much phones in this price range All are single sim cell phones 3G phones are not available Wi-Fi with design (Qwerty & Touch-Rs.6000) OS: JAVA

3 Top phones priced under Rs 5,000(AFAQS)

Micromax A50Micromax A50 Micromax's clinching factor has more or less always been the price It comes with a voice assistant - just like Apple's Siri - called Aisha 2-megapixel camera This dual SIM phone offers 3G - but only on the first SIM - as well as

Wi-Fi and Bluetooth connectivity Design: Touch screen The memory can be expanded up to 32 GB Price : Rs 4,999

Karbonn A1 Price : Rs 4,500 Touch-screen phone Android 2.2 It comes with a Wi-Fi hotspot 3.2MP camera

Samsung Chat 527Samsung Chat 527 Samsung's Chat A Qwerty phone Comes with the Push Mail service and has pre-loaded apps like Facebook,

Twitter and Gtalk It has optical track pad 2MP camera Price : Rs 4,200

Top 5 feature phones under Rs 5,000 (The Mobile Indian)

Micromax Superfone Ninja A50 Price : Rs 4,915 Featuring Android 2.3 Gingerbread 3G Wi-Fi 2MP dual sim

Nokia Asha 200 Price : Rs 3,950 Dual sim 2MP expandable up to 32gb QWERTY NO Wi-Fi 3G

Nokia C2-03 Price : Rs 3,360 Nokia S40 operating system Expandable up to 32 GB 2 Megapixel Camera Design : Touch n Slide

Samsung Chat 527 Price : Rs 4,200 Samsung's Chat A Qwerty phone Comes with the Push Mail service and has pre-loaded apps like

Facebook, Twitter and Gtalk It has optical track pad 2MP camera

Motorola Quartz EX212 Price : Rs 4,800 2MP camera Design – Flip Dual sim , 16GB expandable memory

Advantages of Videocon mobiles

Mobiles are very economical Dual and triple Sim cell phones are available Speaker phones are available GSM+CDMA phones are available The minimum price range of Touch normal and qwerty design

mobiles gives it an competitive edge

Disadvantages of Videocon Mobiles Not much Wi-Fi and 3G features are available in the phones Quality of the mobiles in not up to mark Mobiles with OS like :Android , Symbian are very few Designs like : Touch&type,Touch &qwerty ,etc. are not available Many of the mobiles have VGA camera

Strengths

•Customers are aware about the Videocon brand•Cheap price•High features phones at low price

Weakness

•Less investment on advertisement on Videocon•Fewer margins to distributor/ dealers•Weak promotional strategy•No exclusive showroom•Not providing good services•No proper distribution channel•Poor availability of products in the market

Opportunity

•Growing semi urban market•Purchasing power of people is increasing day by day, moving into new attractive market

Threats

•Already existing brands•Brand reputation is not good (Quality of the product)•Threat from local brands

SUGGESTION

Better scheme should be offered to retailers. Rate stability is very important. Increase promotion about the mobiles through banners posters

advertisements or Campaign Improve distribution channel so that the product is easily

available to the customers Bring new mobiles with add on features of Wi-Fi and 3G in the

same price range Videocon should open its own individual showroom of mobiles