PROJECT REPORT ON AFTER SALES SERVICES OF VIDEOCON COMPANY UNIVERSITY OF MUMBAI FOR ACADEMIC YEAR 2010-2011

PROJECT GUIDE PROF SUMIT

PREPARED AND SUBMITTED BY ADITYA BANSAL (SEMESTERll)

K.P.B HINDUJA COLLEGE OF COMMERCE Charni Road

ACKNOWLEDGEMENT

I, the undersigned would hereby like to thank University of GURU GOBIND INDRAPRASTH for giving me an opportunity to present my skills in the form of this project which will not only prove to be useful for my academic profile but will also prove to be fruitful for my for attaining jobs and also will help me to face the competition in the corporate levels. I would also like to thank Assistant Prof. Sumit for assisting and guiding me in every possible way she could have to prepare this project or else competition of this project would not be possible. I would also like to College of Ideal institute of management and technology for timely availability of books and use of internet which have an important input into completion of this project. Lastly, I would also like to thank my parents for providing all necessary funds which were required of this project.

DECLARATION To, The Principal, [Link] Ideal institute of management, Karkarduma court

Respected Sir, I, the undersigned hereby declare that the project report entitled AFTER SALES SERVICES OF VIDEOCON COMPANY is an original work developed and submitted by me under the guidance of Mr. Sumit. The empirical findings in this report are copied from any report and are true and best of my knowledge. DATE: PLACE: ROLL NO: SEAT NO: ________________ Signature of Student Aditya Bansal

CERTIFICATE This is to certify that MASTER ADITYA BANSAL of Ideal institute of management and technology has successfully completed the project in the academic year 2013-14, as a part of fulfilled of B.B.A (CAM). The information submitted is true and original to the best of my knowledge.

_______________ Signature of Principal Date:

_______________ Signature of project Guide

________________ Signature of External Examiner Ideal institute of management and technology DELHI

INDEX
CHAPTER NO:1) TOPIC INTRODUCTION TO AFTER SALES SERVICES 2) OBJECTIVES OF THE STUDY 3) STUDY OF THE INDUSTRY 4) INTRODUCTION TO VIDEOCON COMPANY 5) 6) VISION & MISSION CORPORATE GOVERANCE FOLLOWED BY THE COMPANY 7) 8) SWOT ANALAYSIS CUSTOMER SATISFACTION 9) AFTER SALES SERVICES OF VIDEOCON COMPANY 10) RESEARCH METHODOLOGY 11) 12) 13) 14) FINDINGS RECOMMENDATIONS CONCLUSION BIBILOGRAPHY 50-51 52-54 55-56 57-58 41-49 38-40 30-32 33-37 23-25 26-29 14-22 12-13 9-11 PAGE-NO 7-8

CHAPTER NO-1 INTRODUCTION TO AFTER SALES SERVICES

INTRODUCTION TO AFTER SALES SERVICES

Every business organization that comes into contact with the customer develops a perception in the mind of the customer. Today, in this Competitive world every organization needs to know the perception in the mind of the customers. In order to gain

mind share or heart share of customers along with the market share is the main lookout for the organizations. Especially in consumer electronics sector, where the Products are more or less same, the only way to leave positive impact On customers mind and to gain competitive advantage is providing Best possible services to the customers. After sales service should be an integral part of any companies sales strategy. A good After Sales service can with its excellence help you gain market share, reduce after-sales related overheads on products and services sold and most important of all key to customer retention. Most customers will not make a repeat purchase or continue with a companys services in case of a bad experience. Many companies underestimate the potential After Sales has for giving you a competitive advantage. Customers expect a high-quality customer service, especially as they focus on getting good value for their money and are willing to spend more with those that deliver the best. According to American Express Customer Service Barometer buying decisions of 89 per cent of consumers are influenced by convenience and 90 per cent of them attach importance to value-for-money propositions, almost 90% of consumers make their purchases based on the quality of after sales customer service.

CHAPTER NO-2 OBJECTIVE OF STUDY

OBJECTIVES OF STUDY

The principal cause behind this project is to know that to what level customers are enjoying and aware of Videocon products offered by the company and what further improvement can be done in future in this area so as to get brand awareness.

Objective: To have an overview of Videocon

To know the reputation of Videocon product in the market

How the consumer preference toward the brand Videocon

The main objective how to increase the reputation of Videocon brand in the market

To understand its competition in business

How Videocon will create a good image in the market

To understand the 4ps used by Videocon in business

To study the attitude and behaviour toward the Videocon company

10

 To calculate the satisfaction level among the customer toward the Videocon company

To compare post Videocon post sales services with other companies

To provides suggestion for improving the Videocon post sales services

11

CHAPTER NO-3 STUDY OF THE INDUSTRY

12

INDUSTRY SCENARIO Before the liberalization of the Indian economy, only a few companies like Kelvinator, Godrej, Allwyn, and Voltas were the major players in the consumer durables market, accounting for no less than 90% of the market. Then, after the liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo, Aiwa came into the picture. Today, these players control the major share of the consumer durables market Consumer durables market is expected to grow at 10-15% in 2007-2008. It is growing very fast because of rise in living standards, easy access to consumer finance, and wide range of choice, as many foreign players are entering in the market Consumer durables are the products whose life expectancy is at least 3 years. These products are hard goods that cannot be used up at once Consumer durables Sector can be classified as follows:1. Consumer Electronics includes VCD/DVD, home theatre, music players, colour televisions (CTVs), cameras, camcorders, portable audio, Hi-Fi, etc 2. White Goods include dishwashers, air conditioners, water heaters, washing machines, refrigerators, vacuum cleaners, kitchen appliances, non-kitchen appliances microwaves, built-in appliances, tumble dryer, personal care products, etc 3. Moulded Luggage includes plastics 4. Clocks and Watches 5. Mobile Phones

13

CHAPTER NO-4 INTRODUCTION TO VIDEOCON COMPANY

14

Brief Profile
A man of ideas, man of substance, man of vision. Shri Nanalal Doot, the founder of the Videocon group, completed his education in Ahmadnagar, Pune in Maharashtra India. A successful sugarcane and cotton grower .he boldly ventured forth and imported machinery from Europe setting up the Gangapur Shakkar Karkhana (Sugar mill) in 1995 at the time when the village had no electricity, there by unleashing an industrial revolution. The die was cast. Over the years, Nandalaji pioneered spirit found expression in the myriad ways, earning him the well-deserved reputation of the industrial activities of Maharathwada, India. In early 80s Nandalal initiated his three sons Venugopal, Rajkumar and Pradeep into the business. Through a technical tie- up with Toshiba Corporation of Japan, he launched Indias first world class colour TelSevision, Videocon Today, Videocon Ltd. Is a households name across the nation Indian No 1 brand of consumer electronics and home appliances, trusted by all over 50 million people to improve their quality of life Corporate Overview The Videocon Ltd. is committed to create a better quality of people and furthering the interest of societies by being a responsible corporate citizen. Creating happiness We will bring the happiness into every home, offering high quality consumers durables at affordable price spreading the culture of convenience, entertainment and comport, far and wide. Achieving Progress. We will pursue the innovative technologies in the field of energy and electronics, create products and services that will improve the quality of life realize the goals of the world community and protect the environment. Sustaining growth We will be a source of pride to our business associates by ensuring mutual prosperity and growth the implementation of forward looking corporate strategies, aimed at identifying the opportunities and responding intelligently to the dynamic of change

15

Perusing excellence We will provide a collective environment for enabling our employees to develop their potential ands makes as significant contribution to the Groups success. In 1985, though a technical tie- up with Toshiba Corporation of Japan, Videocon international limited launched Indias first world-class color television. Today, Videocon International limited, the flag ship company of the Videocon Group, is Indias leading manufacturer of the consumer durables electronics products. Fired by the passion for the innovation, Videocon has kept pace with the changing face of technology, constantly upgrading its manufacturing facilities to incorporate advance technology and high standards of quality into its product range, right across the spectrum. Technology with a Heart Committed to giving the customer the best the world has to offer, Videocon has developed near zero wastage technology, which helps reduce the manufacturing cist by optimizing material inputs. Coupled with quality consciousness at every stage the customer benefits enormously by getting the premium product at the affordable price. The company currently manufactures Colour Televisions, black and White Televisions Audio appliances like music systems, speakers, washing machines etc. .At its modern plant at Citegaon and Aurangabad, the company has also undertaken complete backward integration to manufactures all the critical important components of its product, such as Electronic Tuners, FBTs , ATDMs and Deflection yokes , there by reducing the cost , ensuring quality control and becoming vertically integrated. It has set up a unit at Gandhinagar in Gujarat for manufacturing Black and White Televisions pictures tubes. The Sound of Excellence. Videocon products are of a sophisticated range of Home Audio Systems, Stereo Radio, Recorders and personnel Stereos, as well the contemporary international range of Kenwood digital Hi-Fi Systems. First with the best. Continuous up gradation and indigenous manufacturing has been and continues to be the integral part of the companys s philosophy. Perceived as an innovator in its field, Videocon has notched up many exciting firsts, by exploring the worlds advance technologies. In colour televisions. Videocon is the first company to introduce Picture in Picture, Turbo sound, surround sound, larger screen size, the full flats square tubes, Bazooka technology and the freedom series: affordable high quality range of the products of colour Televisions for the price conscious customers.

16

Global Ambition. Looking beyond India, Videocon is now a global player, acknowledged by the world .it is the first Indian company to win the prestigious CE approval foe exporting its televisions in Europe. Videocon is now entering the world market with its operations in the Middle East, Europe, Indonesia, and South Africa. Videocon Narmada Glass (VNG): a division of Videocon international Group ltd. has the distinction of having set up Indias first plant for the manufacturing of the Glass Shells for Colour television Picture tubes, in technical collaboration with Techneglas Inc., USA (for mainly known as OI-NEG TV Products Inc., USA) world leader in manufacturing the glass Shells Technology. The projects in1990, when the then prime Minister of India, late Shri Rajiv Gandhi, Laid the foundation stone for the project. The Videocon group, with the objectives of backward integration, joined hands with Gujarat Narmada Valley Fertilizers Ltd., (GNFC) for the implementation of its 100%, import substitution project the largest investment 450 crores in the electronic component industry in India. The Plant with the installed annual capacity of 1.7 million gas shells for the colour picture tubes and 0,25 million gas tube bulbs for black and white colour televisions, and Monochrome Monitor Tubes, is located at the Village Chavai, District Bharuch, Gujarat The heights of success. Videocon group has some remarkable achievements to its credit, starting with the successful absorption of sophisticated technology from Techneglas Inc.,USA . The Color television glass shells manufactured by Videocon are with par with the international standards and the picture tube made with VNG glass has already received VDE approval. The facilities include a state-of-the-art tool Room and Mould Shop to manufacture and maintain its mould requirement. Having successfully established its 20 VIDEOCON, 19V, 23V Color televisions glass parts, Videocon has now developed the 20V 2R the latest models. A Picture Perfect Future.:Till 1994 Indian manufactures of the color television picture tubes were improving their glass shells. Videocon group has replaced these imports, thereby saving almost 200 Crores of previous foreign Exchange every year. Videocon group has now surpassed the norms of performance guarantee by the collaborator, Techneglas Incorporation, USA and its operation the plant with 150% capacity utilization- with efficiencies exceeding international standards. Where fields of sugarcane grow tall and proud. Where bushes of cotton bud bloom. Where touristfamous caves of Ajanta and Ellora.

17

Where Indias No.1 Customer electronics and home Appliances take shape, To take Million Into a better, brighter future. This is Marathwada, India where the Doot family launched Videocon International Limited 1984, with the avoid purpose of producing world-class color televisions through the technical tie-up with Toshiba corporation of Japan. Within a decade, Videocon emerged as television and continues to dominate this highly competitive market. The leader innovates. The leader forges ahead. The leader brakes new ground. Harnessing the advance technology, relentlessly pursuing quality to achieve various international standards of Quality control, braking through time and again, with innovative products for a better life. Profile Of Leadership. Futuristic neurons fuzzy logic washing machines, User Fridley-no-frost refrigerator. The very latest music system. the most sophisticated Color television and VCRs. High teck air conditioners, Videocon today is a multi-facilitated group with nine states of the art manufacturing facilities all over India highly qualified engineers trained in Japan backed by 6500 technical and support staff, work together imposed unison to produce Indias leading branch of consumer electronic products and home appliances . Leadership Through People. Videocon lays grate emphasis on the training and development of its work force providing every opportunities for growth and advancement including training stints overseas . From Electronics To Energy- The Heart Of Nation 1995 was a landmark for Videocon . it clearly reformed its leadership in color televisions , Black and White TVs ,VCRs and VCPs washing machines as well as N- Frost Refrigerators ,then Videocon began to reach out to the core. To industries at the hearty of nation petroleum,power,construction and housuing,leading India into the future with confidence ,with determination ,with a commitment to excellence , routed in the pioneering the vision of the path breaker.

18

MAJOR ACHIEVEMENTS OF VIDEOCON INDUSTRIES LTD:

The largest panel production facility in the world under one roof providing very high economies of scale One of the world's largest and most respected CRT glass manufacturers Firing the largest furnace of its kind in the world with a tank size of 3300 sq ft One of the few companies in the world to convert sand to TV one of the largest and most acknowledged CPT manufacturer in the world Manufactured India's first rust-free Washing Machine

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: 1. Consumer durable 2. Thomson CPT 3. CRT glass 4. Oil and gas

19

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 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. Our compressor manufacturing technology in Bangalore further supports refrigerator manufacturing Display industry and its components With 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 format CPT Colour 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 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

20

21

HISTORY
COLOUR & B.W TV WASHING MACHINE

HOME ENTERTAIMENT SYSTEM ELECTRIC MOTORS AC

REFRIGERATORS COOLERS

GLASS SHELLS FOR CRT

KITCHEN APLLAINCES & CRUDE OIL

22

COMPRESSOR COMPRESSOR MOTORS

CHAPTER NO- 5 VISION & MISSION

23

Vision & Mission

Videocons mission: a reflection of continuity and change Videocons mission expression has been crafted to envelope both extant and emerging realities To delight and deliver beyond expectation through ingenious strategy, intrepid entrepreneurship, improved technology, innovative products, insightful marketing and inspired thinking about the future. A breakdown of the statement above reveals a means and end approach, where the end is articulated at the beginning with the means linked to it To delight and deliver beyond expectation: the end This segment not only underlines the importance of the ultimate goal - customer satisfaction (delight) and ultimate target - the customer, but also of intermediate processes and principals, which have contributed to building a robust, dependable Videocon value chain (deliver). As a result of its focus on developing loyal customers and reliable associates, Videocon is able to exceed expectations Through ingenious strategy: the means In the cutthroat world of today, it is only by taking recourse to advance planning and strategy that a business can hope to survive. Although textbook strategy has its uses, reproducing it in verbatim for the real world would be foolish because of the absence of textbook conditions. Thus, there is a need for a bounded rationality, spontaneity and improvisation that is flexible enough for scenarios both imaginable and unimaginable. Videocons ingenious manoeuvres are actually flexi-strategy that abstracts from shifting ground conditions and decides game plans, or sometimes changes the rules of the game

24

Intrepid entrepreneurship: the means An enterprise with the odds stacked against it makes great business sense. This is because higher the obstacles, lower the number of players likely to be active in that field - thus, fetching extraordinary returns. The only requirement is a bold and confident attitude willing to brave the odds. Videocons foray into oil and gas is a bold and intrepid endeavour that arises from immense faith on the surefooted competence of the companys in-house managerial talent Improved technology the means Technology is no more a premium input; it has become the bare minimum in recent years. Rapid advances have only fuelled this phenomenon. Videocon is extremely vigilant in shunting out dated technology and replacing it with the best-in-class offers of the times Innovative products the means Product development, innovation and customisation are the tools Videocon uses to stay ahead of the competition. This is because a continuous stream of innovative products excites the market and enhances brand recall. A strategy that Videocon banks on a lot, especially on the domestic front Insightful marketing the means The market share battle scene has long shifted from technology and processes to the psyche of the customer. This means that those with deeper insights into the elusive mind of the buyer are likely to dominate. Videocon is reinforcing marketing strengths to read better the pulse of the market and help create products that map perfectly into customer preferences Inspired thinking about the future. the means The future is unpredictable, but not doing anything about it is fraught with grave risk. Videocon extrapolates future trends on the basis of current changes in technology and preferences as well as sheer gut feel.

25

CHAPTER NO-6 CORPORATE GOVERNANCE FOLLOWED BY THE COMPANY

26

Company'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 Corporate governance is considered as an important tool for shareholders rotection and maximization of their long -term values. The cardinal principal such as accountability, responsibility, transparency and fair disclosure serve as the means for achieving this R&D The company gives utmost importance to the R & D activities, which are carried out, at in-house R & D center. The company carries on new innovations in product development, cost reduction, quality improvement, process implementations, process controls

27

Future Plans
To strengthen and maintain & its leadership status, the Videocon group has clearly charted out its course for the future. Aggressive development is in full swing at the R & D Centres to bring out state-of-the-art technologies including True Flat, Slim, Extra Slim, Plasma & LCDs, at the earliest. Cost rationalization processes - are in various stages - including rationalizing factories in Europe, increasing automation and improvement of efficiency in China, accessing flass shells from India for international CPT facilities and a lot more - are in various stages of implementation. Internationally all existing client relationships are being strengthened. The cost competitiveness and increase in capacity in Mexico and Polland has opened up big opportunities in the OEM business. Last but not the least, in the domestic market consolidation with multiple brands paves the way for an unassailable lead in the market. In the Oil & Gas business, having all the basic operator capabilities of a prospecting entity, the group is looking to add more explorations and production depth as also oil bearing assets. The group will also get into gas distribution in India siginificantly. Board Of Directors Mr. Venugopal N Dhoot 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)
28

Mr. Johan G Fant (Nominee - AB Electrolux (Publ) ) Mr. B Ravindranath (Nominee - IDBI Limited) Mr. Ajay Saraf (Nominee - ICICI Bank Limited)

ORGANIZATION STRUCTURE CHART OF THE COMPANY

29

CHAPTER NO-7 SWOT ANALYSIS

30

SWOT Analysis
Strengths 1. Videocon has largest distributed capacity manufacturing base across India with 17 Facilities and plant in china, Poland, itally, Mexico. 2. Manufacturing capacity is 1, 40000 units. 3. Videocon has a network of 400 plus service and 85 mobile service vans to give better service to their customers. 4. Tie up with the Matsushita electric company of Japan add to the goodwill of Videocon 5. Customers are aware about Videocons products. 6. Company has good brand name. 7. Strong backward integration 8. Videocon has largest distribution manufacturing based across in India. 9. Large brand basket 10. Multi brand strategy 11. 3rd largest picture tube manufacture in India 12. Cheap price. 13. Globally acceptance. Weaknesses 1. Less investment on advertisement of VideoconCTV 2. Fewer margins to the distributor/dealer. 3. Weak promotional strategy of CTV.

31

4. No proper approach of target customer. [Link] interest unless Effectively managed [Link] technology is losing popularity. [Link] focus on unconventional [Link] basket, which might lead to conflictof 8. Not providing good service. [Link] exclusive show rooms Opportunities 1. Videocon takes over the Electrolux. 2. Videocon buy Thomson color picture tube manufacturing plant. 3. Videocon international is going global. 4. Videocon exploring whole new segment 5. During the climate of Jaipur becomes hotter day by day and coolers do Not fully satisfy the customers requirement. This provides a great Opportunity for ac manufacturers. 6. Growing semi urban market. 7. Industry is in increasing phase. 8. Price has come down; now more and more people are going for it. 9. Due to financial facilities even the medium segment is going for it. 10. Purchasing power of people is increasing day by day. Moving into new attractive market segments. 11. Focused on unconventional channels. 12. Mergers joint venture of strategic alliances. Threats 1. Entrance of global competitor like china. 2. Brand loyalty is more of LG &other company. 3. Market condition like slumps in market. 4. A new competitor in your home market. 5. Competitor has a new innovative substitute product or service. 6. Increased trade barrier. 7. Brand reputation is not good. [Link] in global CPT market especially from integrated players such as LGPhillips, Samsung, and Matsushita is intense

32

CHAPTER NO-8 CUSTOMER SATISFACTION

33

CUSTOMER SATISFACTION
The word satisfaction comes from the Latin word satis (Enough) and faction (to do or make). These words suggest the true meaning of Satisfaction, which is fulfillment. Managerially, fulfillment usually translate to solving problem and satisfy the customer is not enough to produce high level of customer loyalty, business needs to move beyond more satisfaction, to customer delight. The Purpose Of the Business: Peter F. Drucker considered to be one of the leading management gurus in the world, believes that the purpose of business to relate and them retain the satisfied customer. Although the firm has to make the money, Drucker argues that making money is a necessity and does not a purpose. It is in fact, the end result a desirable out come of creating satisfied customer. Theodore Levitt, ha Harward Business professor, who explains by an analogy with human beings, express similar sentiment / all human have to eat to survive, but eating is not-their purpose. Further more making money does not provide a legitimate reason for society and to support the moneymaking enterprise. A society supports businesses as they survey its member by catering to their needs to leave them satisfy. Dissatisfying enough customer and not only will these specific customer stop buying from the firm, but the society at large will condemn the firm and may even panelized it to the point of its extinction. In repose to such messages, co part of the
34

corporate mission and utilizes an understanding of the customer behavior as input to all its marketing plans and decision. Current Market Scenario The Indian customer market is undergoing the transformation-keeping trend with international market the present trend is used as under: Indian market is value for money driven A highly competitive market High potential in the rural market The clear economy range is emerging rural and price conscious customer The market is dominated by Indian companies and MNCs are following suite Techonology is the key driver All players believe in offering sops to customer to woo them Price war ,scheme,discount and trade loading are the market mantra Huge surplus after meeting domestic and export requirement

Current competitive scenario: During the past six years, the market for the customer electronics grows at an average rate of 22% in color television 15 % in [Link] MNCs like samsuang,LG,and Panasonic [Link] the Indian market with wide [Link] after the preneces of the leading international brand in the consumer electronic market it is dominated by Videocon ,BPL,onida etc. The current market share of the top five brands in colour television is as under

Company Videocon BPL Onida

market share 10.5 18.7 11.9

35

Philips Samsung

4.0 7.9

The strategies adopted by the current major players is as under Videocon:-bring home the leader Satisfying the customer needs across the product line and segment but under different brands Toshiba is at the top end, Videocon and Samsung at the middle segment and Akai for the lowest. Products: Color and Black and white televisions, audio, washing machines, Refrigerators, monitors and Kitchen appliances. BPL: - Believe in the best Current brand leader offering diversified product catering to various segment under one umbrella brand leveraging its communicating for the diversified product as reinforcement product quality confidence among the customer. Products: Color and Black and white televisions, audio, washing machines, Refrigerators, monitors and micro wave ovens. LG: - Digitally yours LG is an Korean company following the site in India

Products: Color and Black and white televisions, audio, washing machines, Refrigerators, monitors and micro wave ovens. Samsung: - challenge the limit Decide the umbrella bran by the Korean giant is offering customer probability scheme. Products: Color and Black and white televisions, audio, washing machines, Refrigerators, monitors and microwave, cameras, VCDs DVDs,MP3 etc.

36

EXISTING MARKETING STRATEGY OF VIDEOCON TARGET MARKET: Videocon Industries is eyeing a growth of 35-40% in terms of value for the next fiscal 2010-11. It plans to achieve the desired growth by introducing new product lines, various offers and revamping its service centers across 20 cities. As the consumer gets conscious about spending money with the global meltdown, 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, which are growing at over 22%. The group has recognized high Market Potential Value (MPV) and Market Intensity Index (MII) locations with potential and future prospects to strengthen the business operations and spread consumer reach MAJOR SEGMENT:Major segments are basically those people who plan to make a new home and planning to marry. There are so many people who take electronic product within 5 year and those people who take 6 -7 year. So, their basic segments are those people who take this electronic product. The basic segment on Rural and Semi Urban area where many people like to buy the electronic product.

37

FACTOR AFFECTING SALES:There are many factors, which affects the sales of Videocon. To name a few: 1. Per capita income 2. Competitors 3. Festival time (like diwali, wedding time)

CHAPTER NO-9 AFTER SALES SERVICES OF VIDEOCON

38

After Sales Services of Videocon

Videocon services mission is to support the vision the company becoming the most customer oriented company in the country by building the proactive service organization that continually strobe to create customer satisfaction by internalizing the best practices of customer relationship management Videocon invested 6,500 man-days and Rs 2.6 million to train the employees. Today, Videocon has 280 executive authorized service center 48 service center, (28 direct branches and 20 supervisory branched) 5 call centers. Videocon services employees directly through exclusive franchise network approximately 2500 front line executive for attending for the customer requirement. A Very good and quick sales service not only satisfy the customer having high expectations but also provide him a feeling of satisfaction and thus ensures his loyalty towards the brand. For thus, Videocon must provide a sound facility and faculty for
39

technical training for the dealers to train their service personnel. These training centers must be setup at branch levels to facilitate easiness in providing training. Presently, dealers are not willing to store even the essential spare parts because they dont get any profit on his investment for spare parts. So, by considering spare parts as a product and giving margins on that, the storage of spare parts can be justified to dealers. Though, the after sales service is a backup system for customers and this policy can create such a situation wherein dealers will replace unnecessary parts for increasing profits. But these activities can be restricted by designing a control system for it. Secondly, Videocon serves with the best available quality product, which requires least maintenance so this wont create hefty problems. Moreover the A.C. users are least bothered about the charges incurred in servicing rather he is more concerned with his comfortability. Advanced tools like digital tong tester, digital thermometer, etc. should be provided to the outstanding dealers. Apart from all these things, dealers must be provided with a well-defined catalogue for the quick and proper identification of spare parts.

Comparative study of after Sales Services

40

CHAPTER 1O RESEARCH METHODOLGY

41

RESEARCH METHODOLOGY The study for the research is for the customer behaviour regarding post sales services of all the products with special concern to Videocon Ltd. RESEARCH DESIGN: The research was a study of customers behaviour on post sales services of all the brands with a special reference to Videocon Ltd. a detailed research was conducted so as to collect unbiased information; customer were not told that the survey is being conducted for Videocon. For conducting the research various sources were used to avail the data were as follows: -

42

SOURCES: The main source of data can be categorized into the following two ways: 1. Secondary Data. Secondary Data: Secondary source has been used for collecting the data. This source includes: - Graphical and Statistical data available from Authorised dealer of Videocon company. Sample Area: Mumbai Statistical tool: Pie charts, bar diagrams, histogram etc. are used in representation of data.

AWARENESS ABOUT VIDEOCON, SAMSUNG & LG BY CUSTOMERS

43

From the above pie charts, it is clear that most of the customers (62%) of Videocon came to know about Videocon through TV advertisement as compare to customers of Samsung and LG. As far as print media ad is concerned, only few customers came to know about Videocon through print media ad as compare to customers of Samsung & LG. But no customers of Videocon came to know about Videocon through hoardings and billboards, but few customers came to know about Samsung & LG through hoardings and billboards. Hence, we can infer that Videocon is doing positioning through TV advertisements rather than through print media ad and hoardings and billboards they should more focus on word to mouth marketing because they are weak in this

WHY VIDEOCON, SAMSUNG OR LG?

44

From the above figures, it indicates that people give more preference to price as compare to other attributes (Like Brand & Quality) while buying the Videocon products we observe here that service is not good at Videocon Hence, we can infer that LG & Samsung are strong brand and having more quality than Videocon Also, LG & Samsung products are more expensive than Videocon

HOW DO YOU FEEL AFTER USING THE VIDEOCON TV Excellent Good Fair Poor

45

There is 19% customer who not satisfies with product and feels poor about the t.v Company has to find out all the reason and should work on [Link] company dont attract old customer this will become a big threat for company

Q1: Which brand do you prefer to buy when electronic goods are concerned? (a) Videocon -11% (b) Samsung 22% (c) LG 20% (d) Whirlpool 9% (e) BPL 6%

46

Majority of the total population thinks apart from the companies listed, they generally prefer SONY as a brand when buying of electronic goods are concerned, Videocon is third best choice for the customer Q2 Are you satisfied with the products, which are launched by Videocon Ltd.? Yes - 100% No 0% All the people are satisfied with the products of Videocon Q3: Do you agree that the product of Videocon bears the latest technology products? Yes 95% No 5% Majority of the people thinks that the product of Videocon bears the latest technology products Q4: Are your dealer provides Post sales services? Yes 100% No 0% All the companys dealers provide post sales services to their customers Q5 : Are you satisfied with the post sales services provided by your dealer? Yes 36% No 64% Many of the customers are not happy with the post sales services provided with their dealers Q6: How prompt is your post-sales service after lodging the complaints to the company? Prompt 20% Average 36% Poor 44%

47

More than one third of the customer says there is no promptness in solving the complaints. They had to be chased now and then for fixing the problem. Q7: Which Company do you think has the best after sales service network (nearness of its dealers & service centers around your locality)? (a)Videocon 20% (b) BPL 10% (c) LG - 16% (d) Samsung 40% (e) Whirlpool 14% 40% of the customer says Samsung have the best after sales network here Videocon grabs second place. Q8: Which company gives you best after sales services? (Rank on a scale of 5) 1 is Excellent 2 is satisfactory 3 is Average 4 is Poor (a) Videocon - 38% (b) Samsung 22% (c) LG 12% (d) Whirlpool 16% (e) BPL 12% After aggregate calculation we see that Videocon comes forward and becomes the company, which provides best after sales service Q9: Which Company provides you the best after sales warranty? (i) (ii) (iii) (iv) (v) Videocon 49% BPL 7% LG 12% Samsung 23% Whirlpool 9%

48

Videocon is chosen by most of the people when after sales warranty is concerned. Samsung comes second, followed by LG, Whirlpool and BPL. Q10: Does the replace parts work efficiently? Yes 100% No 0 % All the people say that the replace parts work efficiently and rather they also provided the information that the replaced part do have some time warranty on it. Q11: What is the attitude of the complaints handler towards you? (a) Sensitive 6% (b) Indifferent 94% Majority of the people says that attitude of the complaints handler towards them is indifferent Q12: Are you satisfied with the workmanship provided by which of the company? Videocon - 36% Whirlpool - 11 % Samsung - 29% LG - 9% BPL - 15% Majority of the people satisfied with the workmanship provided by Videocon, Samsung grabs the second position. Q13: Do you face any problem from which of the service providers? Videocon - 13% Whirlpool - 10 % Samsung - 6% LG - 33% BPL - 38% BPL tops the charts when the people face problem from their service providers. Lest problem is faced from the Samsung service providers Q14: What do you think that which Company will dominate the others in the case of product reliability is concerned? (Rank accordingly) Videocon - 15% BPL - 2% Whirlpool - 12 % LG - 26% Samsung - 45%

49

Q15: Rank the below mentioned companies accordingly to there image in the market? Videocon - 20% Samsung - 40% LG - 26% Whirlpool - 12 % BPL - 2% Again Samsung dominate all its rivals when image if the company in the market is concerned. Videocon grabs third position.

50

CHAPTER NO -11 FINDINGS OF THE SURVEY

FINDINGS
Majority of the total population prefer SONY as a brand when buying of electronic goods are concerned all the people are satisfied with the products of Videocon. Majority of the people thinks that the product of Videocon bears the latest technology products. All the companys dealers provide post sales services to their customers. Many of the customers are not happy with the post sales services provided with their dealers

51

 More than one third of the customer says there is no promptness in solving the complaints. They had to be chased now and then for fixing the problem. 40% of the customer says Samsung have the best after sales network here Videocon grabs second place. Videocon is the company that provides best after sales services. Most of the people think that Videocon is the company that provides good after sales warranty. All the people say that the replace parts work efficiently as good as the original parts. Majority of the people says that attitude of the complaints handler towards them is indifferent. Majority of the people satisfied with the workmanship provided by Videocon, Samsung grabs the second position. Lest problem is faced from the Samsung service providers Samsung Dominates when the case of product reliability is concerned

52

CHAPTER NO-12 RECOMMENDATIONS

RECOMMENDATIONS
Price : CTV/ LCD. : The prices are little bit higher as per as there are some unique features but it is very difficult to compete with huge giants like LG, Samsung, Voltas etc. are found tougher sometimes. Sales Promotion:Promotion Schemes:

53

Incentives to the customers should be given to attract them, like a free gift in the way of credit cards, inter cards, executive watches; membership of executive clubs, camera, mobile phones, etc. was purchase of television. The unit wise incentives can be given, like worth of gifts should be increased depending upon the increase in the number of units purchased. For examples, for purchase of two air-conditioners a pair of Ray Ban Sun Glasses can be given, for three or more units, a music system can be given and likewise free foreign tours on five televisions or more. Handsome Discount or free gift on a joint purchase of television, audios or refrigerators along with a television. can be given to the customers. It will help the company to make the customer totally Videocon products oriented, thus paving way for other Videocon products in that house. The existing actual loyal customers are motivated through promotion schemes, like if any existing customer helps in bringing a demand of television, he/she can be awarded by a gift television, being a luxury service based and costly product, people generally discuss with other television. users before buying. Thus their involvement in buying a brand and the product is very high. This gift will be like fixed discount in % for buying any Videocon Product once in a year. Interdealer competitions are always there, so there must be restrictions/punishment for not to sale beyond the point and best dealer award should be given so it further motivate the dealers.

Advertisement: Electronic Media has a very effective reach in each and every potential household, but Videocon is not using this media. Videocon must have very effective and attractive T.V. and radio advertisements, so that all the family members can be acquainted with the special features of Videocon A.C.s. This is necessary because the decision of purchasing any high involvement product has the pre purchase consent of all the family members. Print Media has a widespread reach to the customers and it makes a good impact on them when they read advertisements in newspapers and magazines, so there must be frequent advertisements in magazines and local newspapers on corporate level.

54

Combined Ads consisting of names and addresses of all the dealers of Maharashtra should be given, because people of small towns have a tendency to buy the television. from bigger towns, in spite the existence of dealer in their own town. The advertisements should be of bigger size and more attractive with some unique features. And at least one colorful advertisement must be given in the newspaper in a month at the time of season. Contact Building : Videocon must arrange timely get-together for building contacts with higher officials of the corporate and government, which will help in developing and strengthening their brand loyalty towards Videocon.

55

CHAPTER NO-13 CONCLUSION

CONCLUSION
Relating to Customers : 1. Many customers do not believe that Videocon is using the Rotary Compressor of such reputed brands like Matsushita, Mitsubishi, Hitachi & Toshiba since it is not written or printed on the cartoon.

56

2. Frequency of sales staff of Videocon in Mumbai city is quite satisfactory as compared to previous years to get more and more market show from MNCs. 3. Quality of product was appreciated on an average by majority of the customers and dealers its a great mileage among MNCs. 4. Availability of Product is good. So diversification chances are negligible.

5. Pricing of Flat CRT TVs is quite competitive but in case of LCD TVs; it is very good because the competitor prices are quite higher. 6. Attractiveness of Schemes is on an average in Videocon for Customers. No A.C. ads are there in magazines and very few are there in newspapers at Local or National level, although Videocon Ads for other products are very frequent in National or Regional level papers. 7. Demonstration & Product information are on an average in Videocon for Customers. There are very few or can say no hoardings in Mumbai City, the absence of which results in less motivation in dealers to rise their a123 sale. 8. Existing product range in Videocon is quite good so the Customers have a good scope of choice while selecting a particular model with latest features & aesthetics. 9. 10. The system of Annual Maintenance Contract (AMC) is average in Videocon. The credit facility is average in Videocon.

After sales service is found good here so it increases brand loyalty.

57

CHAPTERNO-14 BIBLIOGRAPHY

BIBLIOGRAPHY
Philip Kotler for Marketing Management NIS Study Material for Marketing Management NIS Study Material for Marketing Research

58

[Link] [Link] [Link] [Link]

59