Impact of Advertising on Brand Positioning of Videocon- Pooj

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<p>PROJECT REPORTON</p> <p>Critical Study of Advertising Effectiveness and its impact on Brand Positioning of Videocon IndustriesFOR</p> <p>VIDEOCON INDUSTRIES LTD.Aurangabad</p> <p>IN PARTIAL FULFILLMENT OF</p> <p>Autonomous MBA( PGDM )BY</p> <p>Miss POOJA PALOD(2005 2007)</p> <p>GUIDED BY Prof.Yuvraj Lahoti</p> <p>VISHWAKARMA SCHOOL OF BUSINESS MANAGEMENT &amp; RESEARCH, PUNE</p> <p>COLLEGE CERTIFICATE TO WHOM SO EVER IT MAY CONCERNThis is to certify that POOJA PALOD is a bonafide student of VISHWAKARMA SCHOOL OF BUSINESS MANAGEMENT AND RESEARCH. She has successfully carried out her summer project titled Critical Study of Advertising Effectiveness</p> <p>and its impact on Brand Positioning of Videocon Industries at VideoconIndustries Ltd, Aurangabad in the partial fulfillment of Autonomous MBA ( PGDM ), course of VIM.</p> <p>She has worked under our guidance and direction. Her work found to be good and complete in all respect. During the period we found him hardworking, sincere and loyal. We wish her all the best for future.</p> <p>DR. SHARAD L. JOSHI (DIRECTOR)</p> <p>PROF.YUVRAJ LAHOTI (PROJECT GUIDE)</p> <p>VSBMR</p> <p>Page 2 of 72</p> <p>VIDEOCON CERTIFICATE</p> <p>VSBMR</p> <p>Page 3 of 72</p> <p>ACKNOWLEDGEMENTA Project usually falls short of its expectation unless guided by the right person at the right time &amp; good opportunities. Success of a project is an outcome of sincere efforts, channeled in the right direction, efficient supervision and the most valuable professional guidance. This project would not have been completed without the direct and indirect help and guidance of such luminaries. They provide me with the necessary recourses and atmosphere conductive for healthy learning and training.</p> <p>I am indebted to Videocon Industries Ltd for providing me an opportunity to undergo my project with them. I am great full to Chairman and Vice President</p> <p>for giving the opportunity to work with his team of managers at Videocon central marketing office.</p> <p>At the outset I would like to take this opportunity to gratefully acknowledge the kind and patient guidance I have received from my project guide Mr. Sunil Tandon Vice President</p> <p>Marketing and his assistance managers Mr. Murli Mohan ( Manager Central Marketing ) without there critical evaluation and suggestion at every stage of the project, this report could not have reached its present form. In addition, my internal guide Prof.Yuvraj Lahoti has critically evaluated my each step in developing this project report</p> <p>I express my sincere thanks to Prof.Yuvraj Lahoti and Dr. Sharad Joshi, Director, Vishwakarma School of Business Management and Research, Pune, for their valuable advice and guidance. They are always a source of inspiration for me. My thanks are also due to the faculty and non-faculty member of Vishwakarma School of Management and Research, Pune, for their cooperation and support in completion of my project.</p> <p>I would also like to thank all the Respondents who gave some of their valuable time to me. Finally I would like to thank My Family Members and My Friends for their valuable inputs.</p> <p>Miss.Pooja Palod</p> <p>VSBMR</p> <p>Page 4 of 72</p> <p>DeclarationI here by declare that project report on Critical Study of Advertising</p> <p>Effectiveness and its impact on Brand Positioning of Videocon Industries has been carried out by me under the guidance of Prof.Yuvraj Lahoti and Dr.Sharad Joshi, Director Vishwakarma Institute of Management. This work is original and has not been copied and submitted either in part or full for the award of any degree anywhere.</p> <p>Miss.Pooja Palod</p> <p>Date: Place:</p> <p>VSBMR</p> <p>Page 5 of 72</p> <p>INDEX Sr.No.1 2 3 4 5 6 7 8 9 10 11 13 14</p> <p>Section</p> <p>Page No.01 03 04 18 21 22 23 33 35 55 58</p> <p>Executive Summary Introduction Corporate Profile of Videocon Brand Strategies of Videocon Objectives of the Study &amp; Research Design Limitations of the Study Theoretical Background Methodology used for the study Analysis and Interpretation Findings Suggestions Annexure Bibliography</p> <p>VSBMR</p> <p>Page 6 of 72</p> <p>Executive SummaryCritical Study of Advertising Effectiveness and its impact on Brand Positioning of Videocon Industries was the project undertaken as a part of the academic requirement of two year PGDM(Autonomous MBA) degree.</p> <p>The objective of the project was to understand the impact of advertisements on brand positioning of Videocon Industries Ltd as Indian Multinational and also to find out the reach and impact on overall buying behavior of consumers after this positioning. In major part we have tested advertising effectiveness of 4 Videocon advertisements in the sample area and it has been co related by the positioning created after the launch of these advertisements.</p> <p>We have also stressed on brand recalling pattern and buying behavior attribute selections of consumers.</p> <p>The project was carried out from 27-05-2006 to 30-06-06 under the guidance of Mr.Sunil Tandon Vice President-Marketing Videocon Industries.</p> <p>In today s highly competitive world companies are stressing on its brand positioning and also on buying behaviour as Management Guru Dr.C.K.Pralhad says we should be more</p> <p>concerned about our customers and their changing buying preferences then and then only we can serve them better and can create competitive advantage over competitors so we have taken this area for research.</p> <p>In this we have discussed the strategic position and thinking of Videocon on the marketing and branding aspect also as company is on global hiring spree what consumer perceives about Multinational image was major concern to management also so we have discussed this theme initially in depth with the management and they become part of our research.</p> <p>Then we have switched over research needle on Consumers and we got very valuable first hand data which was collected by questionnaire and interpreted by ranking and scaling for relevance and accuracy</p> <p>VSBMR</p> <p>Page 7 of 72</p> <p>The survey was successfully undertaken by interacting with 100 consumers in Aurangabad city through which I have made my conclusion.</p> <p>I found that company is running business with multi brand strategy and because of that they use to concentrate on entire brand basket which in result created sort of negligence on positioning of Videocon name in last years but now they have changed there vision and poured lot of efforts on proper marketing mix to create multinational image and higher recalling and trustworthy image in consumers. And my research finding supports this with relevant data. Consumers are having good image about Videocon still the positioning and distribution pull of major rival is in course so they are still fighting for market share leadership. Also for studying adv effectiveness we have carried out content research and outcome of this was also very positive.</p> <p>In last part I have suggested and recommended some remarks for making promotion effort and branding strategy more effective.</p> <p>VSBMR</p> <p>Page 8 of 72</p> <p>IntroductionWhen you think about Nike, Starbuck, Sony or Videocon, what comes to mind? If you are like most people, it is certain Image, feeling, or impression. This is because a brand is a perception resulting from experience with, and information about, a company or a line of products. What many people fail to understand is that brand lives in the heads and hearts of consumers not on side of a package. This is happening just because increased experience of</p> <p>consumers with increased exposure rate of advertisements in the market. Creating awareness of a brand name and positioning is part of building brand. Customers want to know what to expect from brand and how they will be benefit from using the brand, what the brands stands for etc. but this need arised in market as competition in the market offering is increased by many players. Market place confusion arises from the proliferation of brands and products. Forty years ago, the average grocery shop carried about 40 brands, today that number is increased to 400 and big malls are having more than 4000 brands. This increase in the brands is in all sectors including services and because of it companies are rushing to create increased awareness in the market by various promotional means. Advertising is major way of communicating with consumers in the market. Now consumers are suffering from communication overload and because of it positioning errors also created by the companies now they need to correct it by co coordinating marketing communications and fine tuning message strategies. Advertising effectiveness studies makes brand message more relevant and it also helps in developing effective message strategies. So we have taken this subject as interest in this field and which will help the company to develop and think positively on its advertising strategy and positioning strategy. Consumer durable sector in India is increasing rapidly and many international layers are playing key role in it and Videocon from last year projecting them as Indian multinational and also they want to grab major market share so the need of evaluating their advertising performance become important. So the study with said title taken for the research.</p> <p>VSBMR</p> <p>Page 9 of 72</p> <p>Corporate Profile Of Videocon IndustriesThe 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.</p> <p>Today the group operates through 4 key sectors:</p> <p>Consumer Durables</p> <p>Thomson CPT</p> <p>CRT Glass</p> <p>Oil &amp; Gas</p> <p>Consumer Electronics, Home Appliances &amp; Compressor manufacturing in IndiaWe enjoy a pre-eminent position in terms of sales and customer satisfaction in many of our consumer products like Colour Televisions, Washing Machines, Air Conditioners, Refrigerators, Microwave ovens and many other home appliances, selling them through a Multi-Brand strategy with the largest sales and service network in India. Refrigerator manufacturing is further supported by our in-house compressor manufacturing technology in Bangalore.</p> <p>Display industry and its componentsWith the Thomson acquisition Videocon has emerged as one of the largest Colour Picture tube manufacturers in the world operating in Mexico, Italy, Poland and China, continuing to lead through new innovative technologies like slim CPT, extra slim CPT and High Definition 16:9 formats CPT.</p> <p>Colour Picture Tube GlassVideocon is one of the largest CPT Glass manufacturers in the world with a high level of experience and technical expertise operating through Poland and India. Videocon will leverage on this synergy after the Thomson acquisition to internally source glass for its CPT manufacturing increasing efficiencies and lowering costs.</p> <p>Oil and GasAn important asset for the group is its Ravva oil field with one of the lowest operating costs in the world producing 50,000 barrels of oil per day. The group has ambitious plans for expansion in this sector globally.</p> <p>VSBMR 72</p> <p>Page 10 of</p> <p>Shri Nandlal Madhavlal Dhoot, the founder of the Videocon Group, completed his education in Ahmednagar and Pune. As a next logical step to vertical integration, he boldly took upon an entrepreneurial venture by importing machinery from Europe to set up the Gangapur Sakhar Karkhana (Sugar Mill) in 1955.</p> <p>Through a technical tie up with Toshiba Corporation of Japan, he launched India's first world-class color Television: Videocon. Today, Videocon is household name across the nation- India's No. 1 brand of Consumer Electronics &amp; Home Appliances, trusted by over 50 million people to improve their quality of life.</p> <p>The year 2005 marks a milestone in the history of Videocon with the acquisition of the complete Colour Picture Tube operations of the Thomson group and the Indian operations of AB Electrolux, Sweden. Further subscribing to their faith in Videocon, Thomson and Electrolux bought about 15% and 5% stake respectively in Videocon Industries Ltd., our flagship company having a market capitalization of around USD 2.5 billion.</p> <p>The group today is one of the largest manufacturers of Colour Picture Tubes and Glass shells from state of the art units in Mexico, Italy, Poland, India and China, which form the backbone of many Colour Television manufacturers around the world.</p> <p>Our Oil &amp; Gas operations contribute to India s ever-growing demand for energy and developmental needs. Videocon group is more ready than ever for further expansion and serving to continue spreading happiness to millions of people around the world through its products.</p> <p>VSBMR 72</p> <p>Page 11 of</p> <p>Videocon s Board of Governance</p> <p>VSBMR 72</p> <p>Page 12 of</p> <p>Logo Logic</p> <p>This is the new Videocon symbol. It reiterates the ethos of a company dedicated to maintaining the highest international standards of excellence through quality, technology and innovation. For over a decade now, Videocon has been bringing the latest and very best in Consumer Electronics and Home Appliances. Successfully adapting the best of international technology to suit Indian needs, and crafting it to improve the quality of life satisfied customers will agree. as million of</p> <p>The symbol of Videocon asserts its passion for impact and the two E s on the ethic side represent the wide spectrum of interest raining from Electronic to Energy . Along with the steely glint, this communicates the group's global ambition, its strength, sterling credentials and innovative drive. A symbol that proclaims a paradigm shift. A sign that represents the new force that is Videocon. Thus recapitulating our principle of reaching out and touching the lives of millions of people. Worldwide. A company dedicated to maintaining the highest international standard of excellence though quality, Technology and innovation. For over a decade now, Videocon has brought the latest and very best in consumer electronics and home appliances, successfully adapting the best of international technical to satisfy customer will agree a symbol that proclaim a paradigm shifts a sign that new force that is Videocon. Thus recapitulate our principle out and touching live million of people.</p> <p>VSBMR 72</p> <p>Page 13 of</p> <p>Corporate GovernanceCompany's Philosophy on Code of Governance:The company's philosophy on corporate governance enshrines the goal of achieving the highest levels of transparency, accountability and equity in all spheres of its operations and in all its dealing with the shareholders, employees, the government and other parties. The company believes in the philosophy on code of corporate governance, which provides a structure by which the rights and responsibility of different constituents, such as the board, employees and shareholders are carved out. In carrying out this, it is ensured that the company's objectives are well defined and performance against those objectives are adequately measured and monitored.</p> <p>Social ResponsibilityHospitalIn the memory of our founder Videocon runs a world class hospital with the latest equipments, MRI, CT scan machines run by dedica...</p>