PROJECT REPORT

ON PRODUCT AND SERVICES OF VIDEOCONSubmitted in Partial Fulfillment for the award ofDegree of Bachelor of Business AdministrationSUBMITTED TO: SUBMITTED BY:JAGANNATH INTERNATIONAL MANAGEMENT SCHOOLAffiliated To:

GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY

ACKNOWLEDGEMENTSuccess in my endeavor calls for cooperation and guidance from seniors and colleagues. This was simply brought out to me while making this Project.I would like to convey my heartfelt gratitude to Mrs. RAGHUVIR KAUR for the trust she showed in me in assigning me an important and interesting project by sparing time for me from her busy schedule to discuss and clarify various issues connected with this project, for her friendly advice and the motivation she provided me in the completion of the project.It was an enlivening and worthwhile experience to work on Videocon International Ltd.

My Thanks would be incomplete without Thanking Almighty God for his superlative support and blessings.

CERTIFICATION

This is to certify that MOHIT SHARMA has completed his project report entitled products and services of Videocon as a part of partial fulfillment of B.B.A (Gen) programme from JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL, affiliated to Guru Gobind Singh Indraprastha University, under my guidance and his work is original.

Table of ContentsS.No.TOPICSPAGE No.

Executive Summary1

1

1.1

1.2Introduction

>Overview

>Objective223

2Company Profile

History

Customers, Corporate and Videocon

Ambitions and Technology

Success Stories

Visionary Videocon

Landmarks4457111314

3Research Methodology15

4Analysis and Findings16

5Threats of Entrance25

6Distribution Channels34

7Recommendations & Suggestions41

8 Bibliography42

9 Annexure43

VIDEOCONEXECUTIVE SUMMARYI have decided to present PDCS minor Project on Videocon after studying its Product Range and Services. I worked on Refrigrators of Videocon India Ltd.

I have chosen Videocon for many reasons. It is one of the biggest Indian Electrical brands not only in India but also globally. Indeed, Videocon is one of the fastest paced Electrical Products worldwide. Videocon thus posed an exciting opportunity to study a brand that is automatically associated with youth and technology.

I worked on Videocon in order to understand the various aspects of its marketing strategy that has made it the Number 1 MNC of India.I focused on its strategies in Refrigerators in comparison with LG, Samsung, Godrej and Whirlpool.INTRODUCTION1.1 OVERVIEWVideocon Industries Ltd. was one of the initials company that made it to the World. Videocon Electricals captured the initial Indian Electrical market and topped the charts for its products such as Refrigerators, television etc. before other players such as Samsung, Whirlpool etc .entered Indian market. Videocon was one of the first Electronic Company to Collaborate with Japanese Toshiba Ltd as early as 1985.1.2 OBJECTIVEVideocon is a company hard to pass by as it was one of the few Indian Companies to be listed in Fortune 500 beside being initial Indian MNC. With its wide range of electrical product range I choose the one that has kept the Indian cools in enthralling summers Refrigerators. The Hot and Humid weather of the country had made many Korean and Americans countries to walk into Indian market earlier captured by Indian Electronics Giant Videocon. The effect on Videocon and its strategy thus become my area and/or object of study,

COMPANY PROFILEHISTORYA Man of ideas. A man of substance. A man of vision, Shri Nandlal Madhavlal Dhoot, the founder of the Videocon group, completed his education in Ahmednagar, Pune and in Maharashtra, India. A successful sugarcane and cotton grower, he boldly ventured forth and imported machinery from Europe, setting up the Gangapur Sakhar Karkhana (Sugar Mill) in 1955, at a time when the village had no electricity, thereby unleashing an industrial revolution.The die was cast. Over the years, Nandlalji's pioneering spirit found expression in a myriad ways, earning him the well-deserved reputation of the doyen of industrial activity in Marathwada, India.In early 80s, Nandlalji initiated his three sons - Venugopal, Rajkumar and Pradeep into the business. Through a technical tie-up with Toshiba Corporation of Japan, he launched India's first world -class Colour Television: Videocon.Today, Videocon is a household name across the nation - India's No.1 brand of Consumer Electronics and Home Appliances, trusted by over 50 million people to improve their quality of life.Customer, Corporate and Videocon

Corporate Overview

The Videocon Group is committed to create a better quality of life for people and furthering the interests of society, by being a responsible corporate citizen.Creating Happiness

We will bring happiness into every home, offering high quality consumer durables at affordable prices, spreading the culture of convenience, entertainment and comfort, far and wide.Achieving ProgressWe will pursue innovative technologies in the fields of Electronics and Energy, create products and services that will improve the quality of life, realize the goals of the world community and protect the environment.Sustaining GrowthWe will be a source of pride to our business associates by ensuring mutual prosperity and growth through the implementation of forward-looking corporate strategies, aimed at identifying opportunities and responding intelligently to the dynamics of change.Pursuing ExcellenceWe will provide a conducive environment for enabling our employees to develop their potential and make a significant contribution to the Group's success.In 1985, through a technical tie-up with Toshiba Corporation of Japan, Videocon International Limited launched India's first world class Color Television. Today, Videocon International Ltd., the flagship company of the Videocon Group, is India's leading manufacturer of Consumer Electronic products. Fired by a passion for innovation, Videocon has kept pace with the changing face of technology, constantly upgrading its manufacturing facilities to incorporate advanced technology and high standards of quality into its product range, right across the spectrum.

AMBITIONS and TECHNOLOGIES

Technology with a HeartCommitted to giving the consumer the best the world has to offer, Videocon has developed near zero wastage technology which helps reduce manufacturing costs by optimizing material inputs. Coupled with quality-consciousness at every stage, the consumer benefits enormously by getting premium products at affordable prices.The company currently manufactures Colour TVs, Black & White TVs and Audio products. At its modern plant at Chitegaon and Aurangabad, the Company has also undertaken complete backward integration to manufacture all critical and important components of its products, such as Electronic Tuners, FBTs, ATDMs and Deflection Yokes, thereby reducing costs, ensuring quality control and becoming vertically integrated. It has set up a unit at Gandhinagar in Gujarat for manufacturing Black & White TV picture Tubes.The Sound of ExcellenceVideocon produces a sophisticated range of Home Audio Systems, Stereo Radio, Recorders and Personal Stereos, as well as the contemporary international range of Kenwood Digital Hi Fi Systems.First with the BestContinuous upgradation and indigenous manufacturing has been and continues to be an integral part of the company's philosophy. Perceived as an innovator in its field, Videocon has notched up many exciting firsts, by exploring the world's most advanced technologies. In Colour TVs, Videocon was the first Indian Company to introduce Picture-In-Picture, Turbo Sound, Surround Sound, Larger Screen Sizes, the Full Flat Square Tube, Bazooka technology and the Freedom series : affordable high quality range of Colour TVs for the price-conscious consumer.Global AmbitionLooking beyond India, Videocon is now a global player, acknowledged by the world. It is the first Indian company to win the prestigious CE approval for exporting its Colour TV to Europe. Videocon is now entering world market with its operations in the Middle East, Europe, Indonesia and South Africa.Videocon Narmada Glass (VNG): a division of Videocon International Ltd., has the distinction of having set up India's first plant for the manufacture of Glass Shells for Color Television Picture Tubes, in technical collaboration with Techneglas Inc., USA (formerly known as OI-NEG TV Products Inc., USA), world leader in Glass Shell Technology.The projects in 1990, when the then Prime Minister of India, the late Shri Rajiv Gandhi, laid the foundation stone for the project.The Videocon Group, with the objective of backward integration, joined hands with Gujarat Narmada Valley Fertilizers Co. Ltd., (GNFC) for the implementation of this 100% import substitution project, the largest investment (Rs. 450 crores) in electronic component industry in the country. The plant, with an installed annual capacity of 1.7 million Glass Shells for Color Picture Tubes and 0.25 million glass Bulbs for Black & white Picture Tubes and Monochrome Monitor Tubes, is located at Village Chavai, District Bharuch, Gujarat.SUCCESS STORIESThe Heights of SuccessVNG has some remarkable achievements to its credit, starting with the successful absorption of sophisticated technology from Techneglas Inc., USA. The CTV Glass Shells manufactured by VNG are at par with international standards and the Color Picture Tubes made with VNG glass have already received VDE approval. The facilities include a state-of-the-art Tool Room and Mould Shop to manufacture and maintain its mould requirements. Having initially successfully established its 20V, 19V and 13V CTV glass parts, VNG has now developed the 20V 2R the latest models.A Picture Perfect FutureTill 1994, Indian manufacturers of CTV Picture Tubes were importing Glass Shells. VNG's production has replaced these imports, thereby saving almost Rs.200 crores of precious foreign exchange every year.

VNG has now surpassed the norms of performance guaranteed by the collaborator, Techneglas Inc., U.S.A. and is operating the plant with 150% capacity utilization - with efficiencies exceeding international standards. Where fields of sugarcane grow tall and proud. Where bushes of cotton bud blooms. Where tourists flock to the world-famous caves of Ajanta and Ellora.Where India's NO.1 Consumer Electronics and Home Appliances take shape, to take millions of Indians into a better, brighter future.This is Marathwada, India, where the Dhoot family launched Videocon International Limited in 1984, with the avowed purpose of producing world-class Colour Television through a technical tie-up with Toshiba Corporation of Japan. Within a decade, Videocon emerged as India's leading brand of both Colour and Black & White Televisions and continues to dominate this highly competitive market.The leader innovates. The leader forges ahead. The leader breaks new ground. Harnessing the advanced technology, relentlessly pursuing quality to achieve various international standards of Quality Control. Breaking through, time and again, with innovative products for a better life.VISIONARY VIDEOCONProfiles of LeadershipFuturistic Neuro Fuzzy Logic Washing Machines, User-friendly - No-Frost Refrigerators, the very latest music systems. The most sophisticated Colour Television and VCRs. High-Tech Air-conditioners. Videocon today, is a multi-faceted group, with 9 state -of-the-art manufacturing facilities all over India. Highly qualified engineers, trained in Japan, backed by 6500 technical and support staff, work together in close unison to produce India's leading branch of consumer electronic products and home appliances.Leadership through PeopleVideocon lays great emphasis on the training and development of its work force, providing every opportunity for growth and advancement, including training stints overseas.

LANDMARKS

FROM ELECTRONICS TO ENERGY

The Heart of Nation

1995 was a landmark year for Videocon. It clearly reaffirmed its leadership in Color TVs, Black & White TVs, VCRs and VCPs, Washing Machines as well as No-Frost Refrigerators. Then Videocon began to reach out to the core. To industries at the heart of a nation: Petroleum, Power, Construction and Housing. Leading India into the future, with Confidence, with determination, with a commitment to excellence, rooted in the pioneering vision of a path breaker.

RESEARCH METHODOLOGYThe methodology followed by the researcher, during the preparation of the report was collection of data thorough SECONDARY SOURCESWhen an investigator uses the data that has been already collected by others, is called secondary data. The secondary data could be collected from Journals, Reports, and various publications. The advantages of the secondary data can be It is economical, both in terms of money and time spent .The researcher of the report also did the same and collected secondary data from various internet sites like www.Google.co.in and www.yahoo.com and many more. The researcher of the report also visited various libraries for collection of the introduction part.OBJECTIVESTo study about the product and services of Videocon

To study the distribution channel of videocon

ANALYSIS And FINDINGSCOMPARISON WITH OTHER COMPANIESREFRIGERATOR INDUSTRY AT A GLANCE

Refrigerators are being manufactured in India for the last four decades.

Till early nineties only direct cool refrigerators were used in India.

Videocon introduced frost-free refrigerators in 1991.

In 2005-06 the market was as follows:

Segment Price % Market Share

Direct Cooling Low 85%

Frost Free 35-40% more than DC15%

Fig. 1.1Based on the Capacity and price the market was divided as follows in 2005-06

Fig. 1.2Segment Price Capacity % Share

Top >20000 >300 Ltrs 3%

High 15-20000 >230 Ltrs 7%

Medium Upto 15000 165-230 Ltrs 85%

Low