PRINCIPLES OF MARKETING

TELEVISION INDUSTRY PRESENTED TO:PRESENTED BY:

PROF. ALKA SHARMA ISHAN MAGOTRA- 26KUMUD GOEL- 28

MEHAK ANAND- 30MBA- I (B)

(2015- 2017)

CONTENTS•INTRODUCTION•BPL•SAMSUNG•SONY•LG•MARKETING ANALYSIS OF INDIAN TELEVISION MARKET•CONCLUSION

INTRODUCTION•Television market in India is one of the fastest growing segments of the consumer durable industry.•The industry has witnessed a tremendous transformation, with the consumer preference changing from CRT televisions to flat panel televisions.•The Television market can be categorized into four segments: CRT TVs, LCD TVs, LED TVs, and Plasma TVs. •At present, the Television market is dominated by the LCD TVs segment and its market share will continue to rise till the end of 2018 (as per CEAMA Report). •CEAMA reveals that TV market in India is expected to grow at a robust CAGR of 19% till 2016.

Evolution Of Television

• World's first Mechanical Television:

• First Television Launched:

John Logie Baird FRSE ,Scottish engineer, who innovates the ideas and inventor of the world's first mechanical television.

RCA 630TS, the first mass produced television set look when it was ready to be sold in 1946–1947.

Evolution of Television In IndiaSome of the Old TV sets - famous

brands were: Oscar, Beltek, Webel, Weston, Nelco, Salora, Bestavision or Crown.

These are some of the oldest television brands that first gave Indian consumers a taste of outside world through these TV sets in the 70s and 80s. This is Salora’s Black And White Television.

• Bulky Colour TV Sets (1990s): During the launch of satellite Television & famous TV shows like Humlog and Buniyaad.

• Emergence Of Flat Television:Fully Flat Television started by Sony, BPL and Onida.

• LED/ LCD and Plasma Culture:LCD/LED Television started in 1997 in US but it came to India in 2007.

• Ultra HD or 4K TVs: Ultra high definition television (also known as Super Hi Vision, Ultra HD television, UltraHD, UHDTV, or UHD)

Top Television Brands in India The main key players who are dealing in Indian Market are: Videocon Sony LG Electronics Samsung Philips BPL Sansui Mitashi Intex Onida Electronics; and Others.

Global Market Share of Television Manufacturers (2014)

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

Global Market Share of Television Companies

SWOT ANALYSIS STRENGTH: Presence of established distribution networks in both urban and

rural areas. Presence of well-known brands. In recent years, organized sector has increased its share in the

market .

WEAKNESS: Demand is seasonal and is high during festive season. Low purchasing power of consumer. Poor government spending on Infrastructure

SWOT ANALYSIS OPPORTUNITIES: In India, the penetration level of white goods is lower as

compared to other developing countries. Increase in income levels, i.e., increase in purchasing power of

consumer. Easy Availability of finance.

THREATS: Higher import duties on raw material imposed. Cheap imports from Singapore, China and other Asian countries.

British Physical Laboratory (BPL) is a Private Limited Company as an Indian Electronics Company.

It was founded by TPG Nambiar in 1963 in Palakkad, Kerala, and is headquartered at Bangalore, Karnataka.

Manufactured hermetically sealed precision panel meters for the defense forces.

Nambiar’s Vision was to make BPL Group a “Household Name”.

Core Businesses- Consumer Appliances, Home Entertainment & Health Care.

ABOUT THE BRAND

Product Life-Cycle of BPLProduct development: Sale are zero and the

company’s investment costs are high. In case of BPL it lies from 1963- 1982.Introduction: Introduction is a period of slow sales growth as the product. Profits are nonexistent inthis stage coz of heavy investment cost. BPL introduces itself as a COLOR TV manufacturer in 1982.Growth: Growth is a period of rapid market acceptance and increasing profits. In BPL, it lies from 1985-95.Maturity: Maturity is a period of slowdown in sales growth because the product has achieved acceptance by most potential buyers. In BPL it lies from 1995-2000.Decline: Decline is the period when sales fall off and profits drop. In BPL it has come from 2000 onwards.

Believe in the Best

Happier Living Everyday

Yes….. We are Back !!!

Believe in the Best

Happier Living Everyday

LED TV for all………………Newly Launched- Affordable LED TV @ Rs. 6,999/-

15’’ LED TVLow Cost – Rs. 6,999/-21’’ LED TVLow Cost – Rs. 11,999/-Exchange Old CRT TV

for a discount of 30% and get New BPL -LED TV

Key Highlights & Focus :

It is worth noting that though LCD and LED display flat panel TVs are here in India for almost 9-10 years now, these are yet to catch the market like wild fire. Main Problems People not buying LED/LCD TV-High CostThe use of CRT (Cathode Ray Tube) TVs is refusing to go down.At many places today including shops and house one can spot a small CRT box.

Why ???

To Break this Barrier Has stepped in with its unique Affordable & Cost saving LED TV

Stp of bplSEGMENTING

•Level: Mass Marketing - Same Product to all Consumers.•Geographic: Cities , Semi- Rural Areas.•Demographic: Age group- All Income Group- Middle & Lower Middle Class- Families Family Size- 4 -5 people in a family.•Psychographic: Social Class , Lifestyle, Barber Shops can get one small sized LED TV ( Sports & Movies) ,hospital wards, receptions and tourist buses .•Behavioural: Occasions, Festivals– Tempting Offers, Discounts; World Cup – Contests to win TV’s at discounts. Scratch Card offers at Festivals – Diwali, Christmas etc.

TARGETINGTargeting Strategy or Targeting is the selection of the customers you wish to service.

• Cities & Semi- Rural Areas• Middle & Lower Middle Class- Families

CRT television replacement is a big market opportunity in India and BPL are poised to grow there by launching a small-size model which we believe will trigger 60% growth in television business in 2016.

Bridging the Gap

POSITIONING

To Create an image in the minds of the Target Market for its Product & Brand.

A Product’s Position is how the Potential Buyer see the Product.

Steps :1. Select Competitive Advantage : Low Cost & Affordable.

2. Effective communication to deliver in the Market: Differential Promotional techniques

“ Its not just TV, its BPL”

• Sony• LG• Samsung

Present Scenario:

•High Cost.•Luxurious .•Mostly Large in size.

Low Cost & Affordable Small , Medium, Large Economical .

Offers

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Competitors

SWOT AnalysisSTRENGTH: BPL to build on its strengths like product quality, money value, proposition & presence across .Has good presence in Non- metro cities especially in the South.Strong Regional Brand - - towards large scale.

WEAKNESS: TV market of BPL is Low. Competitors – LG, Samsung, Sony.

OPPORTUNITIES: CRT Market Replacement, Small Sized LED TVs at low cost.THREATS: Any Local Brand , Competitors slashing rates of their LEDs.

• Established in January, 1969• 1970’s: Bet the future on electronics

– laid the groundwork for electronics in Korea– helped the domestic economy grow

• 1980’s: established Semiconductor and Communication corporation

• Early 90’s: Integration and Globalization• Mid-Late 90’s: Implementing new management strategies

HISTORY

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LCDSemiconductor

TelecomSystems

Digital Appliance

s

IT Solutions

Mobile Communicat

ions

LCDDigitalImaging

Visual Display

BUSINESS UNIT

SEGMENTATION Demographic market segmentation of Samsung is age segmentation ; Based on few stages of age such as teenagers, adult and old people. Income segmentation target both high income family and low income family, those have their own power to demand Samsung products. Life style segmentation is a segmentation based on the life style of consumers.

STP OF SAMSUNG

TARGETTING

Those willing to pay the premium pricing for new technology products and are highly involved for a rich entertainment experience.

POSITIONING SAMSUNG CONCEPT STORE

WIDE CARE NETWORK

ACCESS TO SAMSUNG CARE LINE

MARKET MAKING AND CATEGORY CREATION IN SMALL TOWNS

MARKET SHARESamsung eyes 25% market share in Flat TV segment

• Launching seven new range of Flat color televisions for the Indian market Samsung planning to sell two million televisions this year and would launch three new flat TVs.• During January-May, there has been a 71% growth in sales of flat TV, while it had been 558% growth in LCD.• Three Ultra slim models, two Slim Fit models and two Flat television models constitute the new line Flat television lineup, making Samsung’s Slimfit TV lineup the largest in the country .

Samsunng tv dealers in jammu•Ajanta Electronics, Opposite BSF Camp, Main Road, Paloura.•Super Electronics, Muthi.• Surya Sales Corp, Apsara Road, Gandhinagar.•Shree Electronics, Gandhi Nagar.•Shubhangini Electrical System, Main Roop, Roopnagar.•Sapna Electronics & Electricals, Akhnoor Road.

Started in 1946 by Masaru Ibuka and Akio Morita in Japan. Sony’s outstanding technology revolution in TV industry 1960 Sony introduced the first direct television in world, the TV8-301 ,Introduced the smallest and lightest television in 1962.

HISTORY

2009 Sony bought BRAVIA LCD television 2009 Sony’s LCD market increased

Royal Philips Electronics Inc.• Established in Netherland in 1891• Target high-end markets and high-technology• Withdrawal of LCD TVs in North America in 2008

-Continue to sell, but rights owned by a Japanese company until 2013

Sharp Corporation• Sharp manufactures both LCD panels and LCD TVs• Sharps AQUOS TV is it’s most significant product

-Comes from “aqua” and “quality”, meaning image caused by liquid crystal material flow

COMPETITORS

SEGMENTATION

Demographic IncomeAge-teens/youth

GeographicTarget is mostly cities or urban areas.Ranges from small cities to large metropolitan areas.Over 25000 distributors selling sony products.

STP OF SONY

TARGETINGThey catch the niche target segment, understand their requirement, and constantly develop their product to remain competitive in the market. Target those who want to achieve a thrilling and exciting TV experience.

POSITIONINGPoints of Parity Television Mobile phones

Points of Difference Television Bravia technology Monolithic design

Dealers of Sony tv in jammu•NS Enterprises, Gurudwara Road, Gandhi Nagar.•Sony Exclusive Stores, Near Nathu Sweets, Gandhi Nagar.•Bedi Cycle Works, City Chowk, Shalamar.•Shree Electronics, Gandhi Nagar

INTRODUCTION• A multinational company of South Korea that deals in

electronic goods.• Originally established in 1958 as Goldstar.• The second largest manufacturer of television in the

world.• VISION AND MISSION LG’s Vision is to become a worldwide leader in digital

that ensures customer satisfaction through innovative products and superior services.

LG’s mission is to create value for customers, to respect human dignity and to become best in its field.

Marketing mix of lg

•PRODUCT•PLACE•PRICE•PROMOTION

FACTORS FOR SUCCESS OF LG

• WIDE DISTRIBUTION CHANNEL• INNOVATIVE MARKETING STRATEGIES• CORPORATE SOCIAL RESPOSIBILTY• PROMOTIONS

STP of lgSegmentationLG has segmented its market on the basis of following:

DemographicIncomeOccupation

GeographicTier 1 citiesTier 2 cities

PsychographicLife stylePersonality

BehavioralValueBenefit sought

TARGETINGLG has targeted its market on the basis of the product that they are offering to the consumer. They are targeting:

• Upper middle class and premium segment.• More concern for lifestyle product. • Quality product at the best price.• Concern of safety and health issues.

positioningWith the tagline Life’s Good; • LG positioning is to differentiate their products on the basis of

technology which appealed to the consumer on the basis of health benefits (safe).

• Its corporate philosophy to make people lives better, convenient and healthier. Their positioning strategies are technologically intelligent and futuristic. As they are in upper and premium segment, so they are featuring that their brand is young, vibrant and premium.

• They are talking about the value and changing lifestyles in their positioning strategy.

SWOT ANALYSISSTRENGTH•Market leader in home appliances.•Has got manufacturing unit in tax incentive.•Wide range of products to serve all categories.•Widest distribution network in the industry (47 branches, 10000 trade partners).•Good after sales service offered.WEAKNESS•Samsung being its competitor provides similar products.•Consumers compare LG with Samsung its Korean rival not with other global companies.•Lack of expert operators for complex machines due to illiteracy and lack of training in India.

SWOT ANALYSISOPPORTUNITIES• Fast growth of the home appliances market.• Shifting to rural areas, & maintaining control over the

market.• Thus, maintaining control over the market and the highest

share in home appliances market.THREATS• Close competitors like Samsung are compared to it.• Price war with Samsung.• Competition from Indian brand and other foreign brands.

COMPETITORS of lg• LG is an emerging player direct competition with

Samsung, owing to similar user perception. • But especially for LCD television, Sony is the

market leader in LCD TV segment in India.• Some of its other competitors in the world market

are as follows –VideoconBPLPhillips

FUTURE PLANS• LG has a positive perception of India and the Indian

consumer. • Sharp arrow “reason to buy” over “blanket all

approach”.• Focus on low and medium priced products.• Keep marketing “ magnetism” more potent through

aggressive marketing.• LG is making a foray into the e-commerce market in

India and has partnered with various local websites like fabmall.com, rediff.com, indiatimes.com, and indiaplaza.com.

LG DEALERS IN JAMMU• Surya Sales Corp, Apsara Road, Gandhinagar.• Bedi Cycle Works, City Chowk, Shalamar.• Shivangi Electronics, Shop No. 34, South Block,

Bahu Plaza.• Super Electronics, Muthi.• Aman Electronics, Tirath Nagar, Talab Tillo (Also

serves Srinagar).• Mahajan Trading Corporation, KC Plaza Complex.

Marketing analysis of the indian television market

• Current market size is estimated at 13.2 million units.

• LG and Samsung are the dominators with combined share of 42%. Aggressive marketing, product quality and price sensitivity are going to be the key factors controlling the market.

• LCD Television market share is around 6.6% of the total CTV market. Technology and Innovation are most influential factors which would drive this segment. India’s growing upper middle class is projected to be the greatest source of LCD TV purchasing power.

• 32” LCD TV capture the maximum share within the segment.

CONCLUSION• In the past five years, the Indian television industry has

witnessed drastic changes intensity of competition, promotional schemes and deferred payment options.

• The entrenched position of Indian market leaders such as Videocon, BPL and Onida have challenged by MNC’s such as LG, Samsung, Sony, Panasonic, Phillips, and Sharp.

• The changing environment needs fresh thinking to gain cutting edge advantage. Various strategies initiatives have been adopted to leverage on favorable forces and prevent adverse ones.

Major players in the Indian Television Industry are as following and their key strategies are discussed below:

LG Sharp arrow “reason to buy” over “blanket all approach”. Focus on low and medium priced products. Keep marketing “ magnetism” more potent through aggressive

marketing.ONIDA Value for money proposition. Creating strong emotional pull through brand salience. Broad basing product offering. SAMSUNG Create a premium image by emphasizing on global brand. Competitive pricing.

VIDEOCON Leveraging on being an Indian company. Multiple brand strategy. Focusing on dealer/ distributor networks.SANSUI Product differentiation strategy employed with focus on high

technology sound systems. Marketing products with focus towards the youth. Highly competitive pricing.BPL Market segmentation strategy. Sub- branding strategy. Focus on In- store and POS branding.

INTEX Focus on technology and innovation. Leveraging on technological prowess from IT hardware industry. Create round the year impact through marketing.

MITASHI Focus mainly on low product pricing. Creating distribution channels. Primary focus on retailing.