Videocone Marketing Strategy

Topics: Cathode ray tube, Videocon, Consumer electronics Pages: 20 (5406 words) Published: September 7, 2009


Videocon is a company that was floated by Nandalaji Dhoot in 1986 to launch India’s first superlative colour television in a collaboration with Toshiba Corporation Japan, has now claimed to be a $2.5 billion conglomerate (in market capitalisation). The company has two core activities, which include the manufacturing, assembly, marketing and distribution of consumer electronics and home appliances, and exploration and production of oil and gas. The company presently has seven operating business divisions, in which major divisions are consumer electronics, home appliances, components, etc. Videocon has clearly been at the forefront in delivering low end products and innovative technologies to become a global player.

With sales crossing the $1 billion mark, this home-grown company has not only emerged as a leader, but has thrived in the competition with its multi-brand strategy. The real growth started when in the early ‘90s, the company successfully set up huge manufacturing units. Ingenious marketing strategies led Videocon to undertake businesses in foreign markets within Asia and Europe. In India, Videocon has eleven manufacturing facilities. It is the only manufacturer of glass panels in India. The facility at Bharuch is largest in the world at a single location and the third largest overall. History of the Firm


Vision & Mission

Videocon’s 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.

Organizational Structure of Videocon
Headquarter Office (Videocon)


SWOT Analysis

Internal Analysis
1. Presence of established distribution networks in both urban and rural areas 2. Presence of well-known brands
3. In recent years, organized sector has increased its share in the market vis a vis the unorganized sector. Weaknesses
1. Demand is seasonal and is low during non-festive season
2. Demand is dependent on factors like good monsoons
3. Inadequate infrastructure
4. Purchasing power of consumers is low
Opportunities and Threats
Various opportunities and threats as perceived by the Management are as follows : �� The company has strategically located manufacturing bases domestically, and its subsidiaries internationally. The domestic facilities are widely distributed all over the country and are close to key target markets, thus reducing distribution, transportation and warehousing expenditure. �� The Company has most extensive sales and distribution networks in India. �� The Company has adopted multibrand strategy which is more effective in acquiring a greater aggregate share.and also helps to target different socio-economic market segments with each brand. �� The Company has manufacturing advantages based on mass production and integration of processes. The Company is able to control the production costs effectively on account of Mass production scale, Vertical Integration of manufacturing process, leading positions in the manufacture of glass shells and CPTs. �� The Oil and gas business provides the Company with a stable income stream. The Oil produced by the Company is of very high quality. The Ravva field yields Ravva crude, a premium light crude with a sulphur content below 0.01 per cent. which, therefore is able to command a price amongst the highest in the crude oil market. Ravva crude is priced with reference to Tapis and Minas crude, which is a high priced basket of oils. �� The Videocon Brand is popular in the Domestic Market only. It is yet to establish in full fledge the Brand in International Market. �� The Working Capital Cycles in the Consumer Durables and...
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