INTRODUCTION TO THE COMPANY

Videocon is the very popular and very reliable company in consumer durable sector. It was established in 1987 by late Mr. Nandlal madhavlal dhoot. In those time it entered in the market with color and B/W Televisions and Washing Machines. The year 1989-1990 saw the advent of Home Entertainment Systems, Electric Motors and AC. Refrigerators and Coolers by Videocon came in the year 1991. In 1995 Videocon entered into the manufacturing of Glass Shells for CRT and in 1996 came with Kitchen Appliances and Crude Oil. In 1998 Videocon ventured into Compressors and Compressor Motors. It took over Philips Color TV plant in 2000 and 3 plants of Electrolux India in 2005. In the same year Videocon acquired Thompson CPT. We can get compete information by going through company's profile.

COMPANY HISTORY

MISSION
To delight & deliver innovative product through ingenious strategy intrepid entrepreneurship, improved technology, insightful marketing and inspired thinking about the future

VISION To bring happiness in every home with global presence offering high quality eproducts to ease & enrich humanlife.

GOAL / OBJECTIVE
To provide a much higher level of service to all those who seek information

ORGANIZATION STRUCTURE CHART

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

MARKETING
PRODUCTS

MARKET SHARE

COMPETITION
Last Price Market Sales Cap. Turnover (Rs. cr.) 12,919.47 221.79 1,650.74 403.35 78.58 475.25 412.10 Net Profit 545.56 -8.60 -38.94 15.86 60.69 16.97 -7.91

Name Videocon Indust PG Electroplast Mirc Electronic Jindal Photo BPL MVL Industries Salora Inter

Total Assets

168.00 5,355.36 175.00 12.60 131.75 15.40 8.90 17.55 287.25 178.61 135.15 75.01 23.43 15.46

21,207.65 113.85 421.95 235.27 434.38 281.06 169.08

BRAND AMBASSADORS

Riteish Deshmukh has now taken a leap into the world of brand endorsements. The actor will now be seen as the brand ambassador of Videocon Mobiles.

Abhishek Bachchan: Videocon d2h, the direct-to-home (DTH) service provider arm of Videocon Group, has brought actor Abhishek Bachchan on-board as its brand
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ambassador. In an event in Mumbai, the company also unveiled its satellite product range, consisting of satellite LCDs, satellite colour televisions, satellite DVDS and satellite box offering DTH services. SHAH RUKH KHAN

LOGO

Well, the two green creatures are Chouw and Mouw. And they are part of the revamp of the logo of Videocon, one of Indias foremost electronics brands. The trademark V of the logo has undergone a green change. Those of you who watch TV would have already seen the commercial that of two green characters intermingling to ultimately form the V of Videocon. But though the animated clip looks kinda cute, creating it was not so simple, if the brain behind the clip, adman Prasoon Joshi, is to be believed. What we ha ve done is divide the logo into two units, and make characters out of them called Chouw and Mouw. Chouw is the kind-hearted one and Mouw the more mischievous one. And together, they send out the message that if you put your heart and mind together, anything can be achieved,

STP ANALYSIS
Segmenting VEDIOCON has segmented its market on the basis of following: 1. Demographic - Income - Occupation 2. Geographic - Tier 1 cities - Tier 2 cities 3. Psychographic - Life style - Personality 4. Behavioral - Value - Benefit sought Targeting VEDIOCON has targeted its market on the basis of the product that they are offering to the consumer. They are targeting: Upper class sement Upper end

They are targeting to those consumer who are more concern of life style product. Their product is more of upper mid class and premium segment, so their target audience are those consumers, who want quality product as the best. Positioning 1. VEDIOCON positioning is to differentiate their products on the basis of technology which appealed to the consumer on the basis of health benefits. 2. Its philosophy is to make peoples lives better, convenient and healthier. 3. Their positioning strategy are technologically intelligent and futuristic. 4. As they are in upper and premium segment, so they are featuring that their brand is young, vibrant and premium.

SWOT ANALYSIS
Strengths High brand awareness. Weaknesses Poor customer service. Opportunities Videocon exploring whole new segments Threats Entrance of global competitors.

Largest distributed manufacturing bases across India.

Weak promotional strategy of CTV. Less focus on unconventional channels Fewer incentives to dealers/retailers

Entry to global markets.

Increasing competition in home market.

Price Player.

Growing semi urban market.

Brand reputation is decreasing. Shifting brand loyalty to other companies

Global Presence.

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FINANCE
BUDGETS PRODUCTION BUDGET FOR 2008-09(Rs.IN CRORE)

Particulars

amount

Sales

3457.00

+ closing stock

221.03

3678.03

Opening stock

217.25

Production for the year 2007-08

3460.78

INTERPRETATION: From the above analysis it is clear that the production in the year 2009 is Rs.. 3460.78 crore. It is derived by adding the closing stock to sales from that deducting the opening stock of raw material. By comparing the production of the current year with the previous year it is known that the production was increased from Rs.2500.36 to Rs.3460.78.

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PRODUCTION BUDGET FOR 2009-10 (RS. IN CRORES)

Particulars

amount

Sales

4316.13

+ closing stock

224.13

4540.26

Opening stock

221.03

Production for the year 2008-09

4319.23

INTERPRETATION: From the above analysis it is clear that the production at in the year 2010 is Rs.. 4319.23 crores. It is derived by adding the closing stock to sales from that deducting the opening stock of raw material. By comparing the production of the current year with the previous year it is known that the production was increased from Rs.3460.78 to Rs.4319.23.

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PRODUCTION BUDGET FOR 2010-11 (RS. IN CRORES)

Particulars

amount

Sales

5051.51

+ closing stock

368.26

5419.77

Opening stock

224.13

Production for the year 2007-08

5195.59

INTERPRETATION: From the above analysis it is clear that the production at in the year 2011 is Rs.. 5195.59 crores. It is derived by adding the closing stock to sales from that deducting the opening stock of raw material. By comparing the production of the current year with the previous year it is known that the production was increased from Rs.4319.23 to Rs.5195.59.

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CASH BUDGET FOR THE YEAR ENDED 2008-09 (RS. IN CRORES)

particulars Opening balance of cash (+) cash receipts 1. Cash sales 2. Receipts from debtors 3. Other income

Amount 27.24

3457.00 2.71 43 3529.95

() cash payments 1. Cash purchases 2.Payment to creditors 3.Wages paid 4. Other expenses Closing balance of cash 2321.3 547.8 452.15 165.76 40.54

INTERPRETATION From the above analysis of cash budget it is known that cash receipts are Rs..3527.55 crores and cash payments are Rs..3487.01crores. It means that cash receipts are more than the cash payments.

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CASH BUDGET FOR THE YEAR ENDED 2009-10 (RS. IN CRORES) particulars Opening balance of cash (+) cash receipts 1. Cash sales 2. Receipts from debtors 3. Other income 4316.13 1.873 75.93 4434.473 () cash payments 1. Cash purchases 2.Payment to cr m,editors 3.Wages paid 4. Other expenses Closing balance of cash 3417.43 283.703 612.27 64.21 56.86 Amount 40.54

INTERPRETATION From the above analysis of cash budget it is known that cash receipts are Rs..4434.473 crores and cash payments are Rs..4377.613 crores. It means that cash receipts are more than the cash payments.

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CASH BUDGET FOR THE YEAR ENDED 2010-11 (RS. IN CRORES)

particulars Opening balance of cash (+) cash receipts 1. Cash sales 2. Receipts from debtors 3. Other income

Amount 56.86

5051.51 3.852 125.066 5237.288

() cash payments 1. Cash purchases 2.Payment to creditors 3.Wages paid 4. Other expenses Closing balance of cash 3762.96 462.172 826.34 105.366 80.45

INTERPRETATION From the above analysis of cash budget it is known that cash receipts are Rs..5237.288 crores and cash payments are Rs..5156.838 crores. It means that cash receipts are more than the cash payments.

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MATERIAL BUDGET FOR THE YEAR 2008-2009 (Rs.. IN CRORES)

PARTICULARS Estimated consumption () Opening stock

AMOUNT (in Crores) 429.50 217.25

212.25

(+) Closing stock

221.03

433.28 ESTIMATED PURCHASES FOR

THE YEAR 2007-2008

INTERPRETATION From the above table it is clear that the estimated purchases for the year 2009 is Rs.. 433.28 crores. It is obtained by deducting the opening stock from and adding the closing stock to the estimated consumption.

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MATERIAL BUDGET FOR THE YEAR 2009-2010 (Rs. IN CRORES)

PARTICULARS Estimated consumption () Opening stock

AMOUNT (in Crores) 479.56 221.03

258.53 224.13 (+) sssClosing stock

ESTIMATED PURCHASES FOR THE YEAR 482.66 2008-2009

INTERPRETATION From the above table it is clear that the estimated purchases for the year 2010 is Rs.. 482.66 crores. It is obtained by deducting the opening stock from and adding the closing stock to the estimated consumption.

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MATERIAL BUDGET FOR THE YEAR 2010-2011 (Rs. IN CRORES)

PARTICULARS Estimated consumption () Opening stock

AMOUNT (in 699.4 Crores) 224.13

475.27 (+) Closing stock 358.26

ESTIMATED PURCHASES FOR 843.53 THE YEAR 2009-2010

INTERPRETATION From the above table it is clear that the estimated purchases for the year 2011 is Rs. 843.53 crores. It is obtained by deducting the opening stock from and adding the closing stock to the estimated consumption.

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HUMAN RESOURCE MANAGEMENT

TOTAL NUMBER OF EMPLOYEES 93,000

DIVISION OF EMPLOYEES
STORE DEPARTMENT:

MANAGER ASSISTANT ACCOUNTS ASSISTANT CLERK

MARKETING DEPARTMENT

MARKETING HEAD

TEAM LEADER

BUSINESS EXECUTIVE
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MANAGEMENT TRAINEE

PRODUCTION DEPARTMENT

PRODUCTION

DISPATCH

FACTORY WAREHOUSE

DIRECT CUSTOMER

RETAIL WAREHOUSE

DISPATCH

COMPENSATION PACKAGE Vediocon gives 200% and 700% of basic salaries to employees Nothing talks like money, and the employees of consumer durables major Vediocon know what that means. The company gives out six bonuses in a year, which work out to between 200% and 700% of basic salary, to all its 4,500-plus employees in India. It strongly believes that this is the best way to reward its employees and drive performance in a cut-throat industry. "The idea is to create a high performance-driven culture. Variable and multiple payouts are significant features to drive motivation of employees and sustain the organisation's pace,". In today's competitive environment, when companies load their employees with non-monetary incentives such as motivational programmes, training and development opportunities, LG still believes in doing it the traditional way with money. The bonuses include two half-yearly performance incentives, a Diwali bonus, a post-Diwali bonus, a Vediocon birthday bonus and a retention bonus. The company paid bonuses even during the slowdown it was growing at 20% in 2008. Its peers chose not to pay bonuses during the period.
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Bonus systems are typically performance-based evaluation systems that drive employees to achieve their targets and take on new challenges to meet organisational goals and targets. "Our bonus system gives a sense of ownership and pride in working with LG India,". At Vediocon, the half-yearly bonuses are paid in January and July every year. The Diwali bonus is paid in the festive season, while the post-Diwali bonus follows towards the year-end. The company celebrates its birthday in May every year, which makes it another month to look forward to. A special retention bonus is paid to employees who have completed two years of service in LG. While some bonuses are based on the company's overall performance, others are based on individual performance. The retention bonus is a maximum of 400% of an employee's basic monthly salary and is paid in three instalments in every consecutive year. Here's how it adds up. New recruits at Vediocon are offered a salary package, which is a fixed salary plus an average bonus or minimum bonus they are likely to earn. For instance, a deputy manager at Vediocon, who earns about Rs 10 lakh (fixed plus average bonus or variable) may take more than Rs 10 lakh home by achieving more than the expected targets. There is no cap on the extent of variable income that one may earn by virtue of being a star performer. So, an employee with a package of Rs 10 lakh may take home even Rs 12-15 lakh. Vediocon claims that up to 70% of its workforce take home more than their fixed salary plus an average bonus amount every year. The incentive system helped the company in excelling in India as it motivated employees on a constant basis, says Verma. "Because the company's overall performance decides an employee's bonus, it created the whole focus around company's business in the eyes of every employee," he says. So, even if an employee was from the HR or accounts department, he would focus on how he could contribute to the main business and help it take forward, he adds.

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RECRUITMENT AND SELECTION PROCESS

I. Written Test II. Technical Interview III. HR Interview Let us discuss the stages in detail : I. Written Test (Online Test) Nowadays, the company has started to conduct online test instead of manual written tests unlike past years. However the pattern is almost similar with three sub sections: a) General Aptitude b) Technical Section and c) Verbal Section a) General Aptitude b) Technical Section c) Verbal Section II. Technical Interview Technical interview could carry questions from your stream of study. Also you can expect questions from C, OOPS, Operating System concepts and Computer Networks. For example you could be asked to name seven network layers and could be asked to brief their functions. III. HR Interview

WELFARE MEASURES
To develop women employees, the company has set up a women development forum at every asset/basin of the company to look after the welfare, improvement in work in conditions, training and development, and redressal of grievances of women employees. Welfare measures Leave fare assistance Education facilities Medical facilities Social security Compensation for accident while on duty Gratuity Contributory provident fund
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Post retirement benefit scheme Housing Advances Rest & recreation Cleanliness Latrines, urinals, wash basins Ventilation and lighting Canteen Drinking water rest rooms Removal of wastes and environment protection kits & liveries Tree plantation Women development forum Vocational education centre for women library Sports

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CONCLUSIONS
From above Literature review and findings we can say that Videocon needs to redesign its marketing strategies and improve its after sales services in order to make a success in India. However if Videocon improves the services, then there are quite good chances of a grand success as Indian air conditioner market is growing very fast. So Videocon has two options: 1. Improve the marketing strategies i.e. advertising, promotions etc. This could certainly help Videocon to penetrate the tough Indian market and to keep the market share entact. 2. Improve after sales service of the Air conditioner. 3. Hence Videocon need to work upon the real factor through Dealer and Retailer for a KAIZEN continuous productivity in these products will make these products more friendly and customized. 4. Hence Videocon will be able to win a major market share 5. between the competitors

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SUGGESTIONS
1. Improve the marketing strategies i.e. advertising, promotion etc. This will surely help Videocon to penetrate the tough Indian market and to keep the market share intact. 2. Attractive schemes must be launched by company in order to attract lower middle class. 3. Increase the number of Engineers in after sales Service department. 4. More promotional campaigns must be started. 5. Number of call centre should be increased. 6. The marketing managers should make better relations with dealers and reputation of the company. 7. Customer considers quality as their first preference, so the company should give more stress on this. 8. The switching of customer from VIDEOCON product to other brand is due to the bed after sell service in shop. 9. The product is well aware and it is on top of mind of customer. So company should always improve services and update their technology. 10. Exhibitions do not help to generate so much sells but they should be conducted regularly. This helps in generating awareness regarding the product in customers, which ultimately helps in sales. Also it is helps in advertising for the new products. Like in this exhibition new LCD was advertised. Company should always focus on service. Display share should be increased where there is less than 50% as 11. Company should try to improve service. No doubt the company products have technically edge over competitors but in long run it may hamper the companys profit.

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12. Company should concentrate more on its major drivers LCD, IT, and GSM. Branding and promotions should be done effectively as it creates a long lasting image in the mind of customers. 13. Company should also cater to the needs of sub dealers as some of the sub dealers have potential of high sales. 14. The company should maintain the sufficient funds for the future allocation of budget. 15. The company should set the initial standard to compare the budgeting performance of the various departments. 16. During the period of the study, purchases were estimated. It helps in estimating the planning stock levels and production requirements.

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BIBLIOGRAPHY
1. www.videoconworld.com 2. www.google.co.in 3. www.videocon.co.in 4. C.R. Kothari, Research Methodology 5. Philip Kotler, Marketing Management

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