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gautam vediocon


									                                       Videocon International Ltd.

Name of the unit        :-   Videocon International Ltd.

Office address          :-   Auto Cars Compound,
                             Adalat Road,
                             Aurangaad – 431 005.
                             Maharshtra, India.
                             Tel. No. 91-240-2320250
                             Fax. No. 91-240-2333740.

Corporate Office        :-   171, Mital court,
                             C wing, 17th Floor,
                             Nariman Point,
                             Mumbai – 400 021.
                             Maharashtra, India.
                             Tel. No. 91-22-2873822
                             Fax. No. 91-22-2873258

Established year        :-   1986-87

Size of the organization:-   Large Scale Industry

Form of organization :-      Public Limited.

Web Site                :-

                                       Videocon International Ltd.

Name of the sub. co.    :-    Videocon International Ltd.
                              Videocon Appliances Ltd.
                               (Subsidiary of Videocon Int.)
                               Kitchen Appliances Ltd.
                              Aka India lTd.
                              Matsushita India Ltd.
                             Videocon Petrochemicals Ltd.

Number of dealers       :-    4DealersRajkot.

Number of Plazas        :-    1, (Vishal Enterprise, Rajkot)

No. of service Center   :-    3 (Rajkot)
                              (Videocon Customer)
                              (Ankur Refrigerator)
                              (Vinayak Services)

No. of Warehouses       :-    1 ( Out of Octroi Limit)

Product line            :-    Colour TVs.
                              VCDs & DVDs
                              Air Conditioners
                              Washing machines

                                   Videocon International Ltd.


Sr.                   Particular                    Page
No.                                                 No.
 1    Introduction.                                  4
2     History & development.                          6
3     Growth of Videocon.                             9
4     Promoters and other information.                11
5     Size o unit & type of organization.             14
6     Product of the company.                         15

                                        Videocon International Ltd.


     Marketing is often dynamic, challenging and
rewarding. It can also be frustrating and even disappointing.
But it is never dull. It is the part of organization where ‘the
rubber meets road’- the place where an organizations ideas,
planning and execution are given the avoid test of market
acceptance or rejection.

      Marketing job is to convert essential needs into
profitable opportunities marketing consists of all activities
by which a company adopts itself to its environment
relatively and profitability.

    Before few years ago there was no need for marketing
because there was no competition in market and so as
compared to supply of product there was more
advertisement. So there was no used of marketing the

     “Marketing is the process of planning, executing, the
competition, pricing, promotion and distribution of ideas,
goods and services to create exchange that satisfy
individuals and organization goals.”
                             - According to Philip Kotler

      Marketing management includes management of
demand, promotion, price and place mew means
distribution channel management etc. promotion includes
advertising, publicity, sales promotion and personnel
selling etc. price includes strategies of products, place
includes management of distributions network it s cost, its
effectiveness ad efficiency etc.
                                     Videocon International Ltd.

     In today’s era at each and every step any scale of
business needs marketing tools for marketing their business
fresh and smooth as well as under providing business life
cycle. In today’s consumers marketing serves as a doctor
for patient.

                                        Videocon International Ltd.


      Videocon is no. 1 in consumer electronic and home
appliances company in India. The company was started by
the late shree Nandlal Madhavlal Dhoot, a man of ideas, a
ma of substances a man of vision who was responsibility
for setting up at string the way to the top with his talents ad
will power.

     He first has sugar mill in Maratha wada region in the
year 1955, the sugar crushing business grow but he found
searching for someway to reach out directly to consumer.

     Though he took opportunity to establish at
Aurangabad, the leadership of Bajaj Auto in 1972. by 1980,
he saw a huge changes in the field of electronic in India.
Though a technical tie up Toshiba Corporation of Japan, he
launched India’s first world-class colour Television.

     Videocon today, Videocon is a house holds mane
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.

     Videocons is today’s fastest growing. It was started
1986-87 at that time its business was Rs. 60 Cr. And today
it has crossed the amount of Rs. 5000 Cr. Ad with 3

                                      Videocon International Ltd.

     The Dhoot Brothers, promoters of Videocon, leads the
success of the company to its surgery of being market
friendly Videocon are amin innovators in the house hold
appliances industries, Videocon as notched up many
exciting first, 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. Also it has very recently launched Internet
television for growing children in the growing trend.

      The company has invested Rs. 52 crores in molding
shops to meet their entire requirements of cabinets for
television, audio, VCR and tubes. For washing machine, t
has also invested RS. 22 crores in component producing
facilities to make fly back, transformers and turners and
another Rs. 16 crores t make Black & White picture tubes,
Add a glass sheets projects wit G.N.F.C. (Gujarat Narmada
Fertilizers Company) and Videocon will be fully integrated
entertainment electronically groups.

      Videocon has invested 400 crores in Banglore in
Applicom India Limited to build up the world-class

     The company is still developing with great speed like
today its turnover is more than Rs. 5000 Cr. Like this the
progress is smoothly going on ad it breaks the old record by
establishing new record.

                                      Videocon International Ltd.

     Whatever the heart desires, Videocon makes and that
is why, when you bring home Videocon quality you bring
home happiness for the family.

      Videocon group companies have won prestigious
approvals and certifications from Indian and abroad. These
include the approvals from the VDE testing and
Certification Institute, Germany, the British Standards, The
CE approval form exporting to Europe and the ISO 9002

                                     Videocon International Ltd.


     We have now entered into the world of 21st century.
This new century has put before us many new challenges,
which we have to readily accept. It has also created many
innovations, which might have been unimaginable of
unbelievable for people with the changed.
     Looking ahead Videocon is India’s largest consumer.
Electronics & home Appliances Company, with increasing
investment in diversified business.
      Production of colour & lack & white TV.
      Setting of Aurangabad plan &production of washing
      Production of Adios Products.
      Production of VCR, VCP, electronic motors.
      Production of electronic turners blasting moldings,
       electorate capacitor B/W picture tubs & Air
      Production of refrigerator & Play back Transforms.
      Setting up of Videocon Narmada Glass (VNG)
       world leader in Glass shell Technology Having
       initially successfully established its 20V, 19V and
       13V CTV Glass parts, VNG has now developed the
       20V 2-R the latest models.
      Production of mixtures. Water purifier and fans.
      It has just launched is disk washers model VA1200
       for cleaning of utensils and dishes.
      Introduction of new technology and double window
       dynamic wide.

                                  Videocon International Ltd.

   Internet Television
   Videocon Petroleum Ltd. The flame of self-reliance.
   The biggest advertisement event of the year is
    coming to India & Videocon has become the official
    co-sponsor of ad-Asia 2003 the conclave that being
    together the most brilliant minds in the field of
    marketing & advertising.
   It had launched 20 new products in last Diwali.
   Videocon group companies won prestigious
    approvals and certification from India and abroad.
    This includes the approvals fro the VDE testing and
    certification institute, Germany, the British
    standards, the C.E. approaches for exporting to
    Europe and the ISO 9002 certification.

                              Videocon International Ltd.


   Promoters :-
         Late Nandlal M. Dhoot
         Shri Venugopal N. Dhoot
         Shri Rajkumar N. Dhoot
         Shri PradipKumar N. Dhoot

   Bankers :-
         Central Bank of India
         Bank of India
         Panjab National Bank
         Times Bank Limited
         Industrial Bank Ltd.
         UTI Bankt Ltd.
         State Bank of India

   Auditors :-
             Khandelwa Jain & Co.
             Charered Accountants,
             12-B, Baldoto Bhavan,
             117, Maharshi Lauve Road,
             Opp. Charchgate Railway Station,
             Mumbai – 400 020.

             Kadam & Co.
             Chartered Accountants,
             Ahmednagar College Road,
             Kothi near Badve Petrol Pump,
             Ahmednagar – 414 001.

                               Videocon International Ltd.

   Regd. Office & Working Division:-
            Auto Cars Compound,
            Adalat Road,
            Aurangaad – 431 005.
            Maharshtra, India.

   Corporate Office :-
            171, Mital court, C wing, 17th Floor,
            Nariman Point,
            Mumbai – 400 021.
            Maharashtra, India.

   Delhi Office :-
             Jhandewalan Extn.
             New Delhi – 110 055.

   Major Production Center :-
            Videocon Production Ltd.,
            Aurangabad-Paithan Road,
            Village Chitegaon,
            Dist. Aurangabad, India.
            Tel. 91-2431-51501
            Fax. 91-2431-41451.

   Videocon International Ltd. :-
            B/119, Electronic, GIDC,
            Gandhinagar – 382 028.
            Gujarat, India.
            Tel. 91-2712-25647
            Fax 91-2712-21199

                               Videocon International Ltd.

   Videocon Appliances Ltd
            Videocon Production Ltd.,
            Aurangabad-Paithan Road,
            Village Chitegaon,
            Dist. Aurangabad, India.
            Tel. 91-240-331462
            Fax 91-2431-41482

   Videocon Narmda Electronics Ltd.
            Village Chavaj Tal,
            Dist. Bharuch, Gujarat, India.
            Tel. 91-2642-33186
            Fax 91-2642-41965

   Videocon VCR Ltd
            Aurangabad Beed Road, Bhalgaon,
            Dist. Aurangabad, Maharashtra.
            Tel. 91-240-2644510
            Fax 91-240-2644505.

                                   Videocon International Ltd.


         Size of Unit :-
               Videocon International Ltd. investment is
more than 20 Corers so we can say that it is large-scale

        Type of Organization :-
             Videocon International Ltd. is a “Public
Limited Company”.

                                      Videocon International Ltd.


     The product is the most important converser by which
any firm can prove its efficiency and insertion of quality.
Product is a symbol of the business firm. It is center point
around which all the activities of the business i.e.,
marketing, finance, production etc. are woven without a
product noting to sell, nothing to price, and nothing to run
business. Product is an engine of the vehicle of the
company for providing consumer satisfaction.

     Videocon is engaged in the production of electronic
and home appliance.

     They produce colour Televisions, Internet television,
Washing machine, Refrigerators, Air conditioners, Video
cassette players, Video cassette recorder, B/W television,
Audios, Disk washers, Power inverters, Tran chiller, Hi-
tech products as well as no frost refrigerators.

                                   Videocon International Ltd.


Sr.                   Particular                    Page
No.                                                 No.
 1    Introduction.                                  17
2     Organization Structure.                         18
3     Marketing Competitiveness.                      19
4     Channel of Distribution.                        20
5     Market of Product.                              21
6     Market Research.                                22
7     Branding & Slogen.                              23
8     Marketing Mix.                                  24

                                      Videocon International Ltd.


     “Marketing is a social and managerial process through
which individual and groups can obtain what they need and
want through creating offering and exchanging product of
value with others.”
                                            -Philip Kotler

     Marketing is comprehensive term marketing is a
management function to plan promote and deliver product
to the customers. A successful marketing strategy has better
marketing tools by which the firm may overcome existing
competition. We have to be strong either on one front as all
other fronts, which create a demand for our products. At
any time there may be no advertisement adequate and
marketing management must find ways to deal with
marketing different demand status.

     Videocon International Ltd. has a marketing
department branches in several cities like, Rajkot,
Ahmedabad, Baroda and Mumbai etc. all marketing
decisions are taken from these branches.

                                        Videocon International Ltd.


     The main aim of marketing department is to translate
consumers demand in to physical product or service. It
helps whole organization. It knows demand of consumers
through marketing channels. The organization of marketing
department is depended on structure of marketing

     The marketing department of Videocon is in Mumbai
& branches of marketing department are distributed I
several cities.

    Te organization chart of marketing department of
Videocon as follows;


VP            VP                VP                     VP
Sales       Marketing           Sales               Production
           CE                                  HA

                                     Videocon International Ltd.


     Videocon today is a household name across he nation.
India’s No.1 brand of colour TVs, audio system,
VCR/VCP, Washing machine, refrigerator and air

    Videocon is having so many competitors in the field of
each product. The competitors like Sony, BPL, LG, Aiwa,
Onida and Samsung.

     I have noted from my survey that Videocon is better
than other companies than consumers demand more than
other company’s product.

                                     Videocon International Ltd.


     With the competition of production the next problem
faced by the producer is to sell the goods to targeted
consumers. There are always links between producers nad
consumers. The way through which the goods fallow from
producers to consumers is called channel of distribution.
Marketing channels are sets of interdependent organization
involve in the process of making product or service
available for use of consumption.

     Marketing channel decision is among the most critical
decision. Once a firm chooses a marketing channel, it must
be usefully remain for a substantial period. Most producers
sell their goods through wholesalers, retailers or agents,
which forms a part of a marketing channel. They must
choose the chipset channel because it is very risky.

     There are two types of channel of distribution channel
is Videocon which are as follows;

    Distributor/Dealers           Direct Dealers

       Sub Dealer                  Consumers


                                     Videocon International Ltd.

              MARKET OF PRODUCT

     The main product of Videocon International Ltd. is a
television and home appliance.

     Now a day Videocon sell over five and half million
consumers in electronic products and more than two million
are in home appliances. The entire product is designed
taking in to consideration the customer’s advice, their
convenience, entertainment, and comfort etc. it has over of
the market.

    In short Videocon has both domestic and international

                                      Videocon International Ltd.


     Beside the internal report of marketing executives, the
management often focused study of specific problem and
opportunities for better marketing activities. The
management often was to face the problem related with
marketing like, pricing decision, promotion decision,
market segmentation etc. These problems look to be the
decreased the marketing and therefore, the exact sure is

     In marketing research the marketing is the doctor to
care all these decease.

    We can find its systematic meaning from its definition
shown below;

     “Marketing research is the systematic design,
collection analysis and reporting of data and finding
relevant to a specific market situation facing the company.

     Videocon International Ltd. carried out their research
work in regular interval, personally when there is
fluctuation sales of any product of the company, some
times the company also carried out research work to know
the view of the people about the new introduced product of
the                                              company.

                                     Videocon International Ltd.


     The word “BRAND” is a comprehensiveterm. A brand
is a name, term, symbol or design to identify the goods or
services of one sellers or group of seleers and difertiate
them rom their competitors.

    The Videocon International Ltd. uses the brand name
Vediocon, forits each and eery product.

     Soe slognen are used in branding and trading the
slogan with right meanng attracts the consumer to purchase
theparticular ptrodut.

    Videocon International Ltd. has slogan as follows;

   Bring Home the Leader.

   We Love Wining, We Love Videocon.

   India Today the World Tomorrow.

   Right Movement for Right Time.

   Technology for Health and Pleasure.

   Expect More from Videocon.

   Agge, Subse Agge Videocon.

                                      Videocon International Ltd.

                MARKETING MIX

      (A) PRODUCT :-
                Product is an engine of vehicle of the
company for providing consumer satisfaction. The product
is most important conversion by which any firm can prove
its efficiency indentation of quality product is a symbol of
the business firm. Product is center point around which all
the activity of the business i.e. finance, marketing,
production, etc. are woven without a product nothing to
sell, nothing to price, nothing to run a business.

         Videocon has divided its product in to three parts;

      Consumer electronics.
      Home appliances.
      Business electronics (New Products).

  They produce colour television, washing machines, video
cassette player, refrigerators, audio disk washer, power
inverter, air-conditioners, and Internet television.

   The important products among these are television,
refrigerators and washing machines.

                                       Videocon International Ltd.

     (B) PRICE :-
               Price is the matter of vital important to both
the sellers and the buyers in the market place without
pricing they can not be marketing only when a buyer and a
seller agree on price we can have exchange of goods or

     Videocon gives more important to prices. They set the
price as much as possible as low so that middle class and
poor class people can also purchase their product.

      This company has three objectives in price wise:-
product, quality and leadership. This company gets success
in all these objectives.

     The price policy of Videocon is formulated keeping in
my mind he fact that majority of Videocon consumers
belong to upper class and upper middle class family.
Therefore, the pricing policy if formulated in such a way
that it is affordable by all classes of people and it not a
burden on their income. The top management of the
company formulates all policies.

                                       Videocon International Ltd.

      (C) PLACE :-
                The place mix decision, the decision of
location also plays a critical ole for retailer should locate
enough stress in easy city to gain promotion and
distribution economics. The place includes channels of
distribution, coverage, inventory, transport, warehousing.

     Distribution channel means the channel by which
finished product is reached from producers to consumer or
users. It is the channel through which goods are made as
smoothly as possible.

      Videocon International Ltd. has two level channel of
distribution of different products. Videocon has a network
of over 4000 dealers.

      The chart of channel of distribution used by company
is as under;

                                      Videocon International Ltd.

     (D) PROMOTION:-
                Promotion is the process of marketing
communication involving information, persuasion and
influence. Promotion has three major purpose, if
communicates marketing information to consumers users
and retailers. The promotion mix includes the following :

                  Sales promotion
                  Advertising
                  Sales force
                  Publicity
                  Direct marketing

      Videocon as different promotion policy for different
product for different tools of promotion like sales
promotion, advertising, sales force, publicity, direct
marketing. Marketing department of the company defines
this policy.

                                    Videocon International Ltd.


Sr.                   Particular                     Page
No.                                                  No.
 1    Introduction.                                   29
2     Meaning and Classification.                      31
3     Advertisement Components.                        33
4     Major Advertisement Decision.                    34

            Mission.                                  35
            Money                                     40
            Message                                   46
            Media                                     54
            Measurement                               61

                                       Videocon International Ltd.


     Advertising is a from of mass communication it is paid
for by a sponsor who wants to communicate about his
product or service to his customer.

Advertising can be defined as :-
          “Mass paid communication of goods, services or
ideas by an identified sponsor.”

     It communicates some special information about
product to people. However, advertising is only one
element of the promotion mix. It is often consumer special
performance in the overall marketing mix design. Also
advertising has now a day’s become a part of commercial
like. Hence, advertising is the most effective tool for
reminding and communicating the mass people.

     Advertising involves the uses of such media as
magazines and newspapers, outdoor, posters, signs, radio,
television, catalogues, directories, pamphlets, direct
marketing etc.

     As far as the advertising management of Videocon
International Ltd. is concerned there is no doubt that, it is
adequately and continuously managed with considerable
efforts in very accurate directions.

      Videocon advertising is effective and attractive and
perhaps it is the factors by which it has been really able to
generate and create good demand and a reputed name in the
field of electronic and home appliances.
                                   Videocon International Ltd.

      Thus, advertisement may also be viewed as social
institution as an art from as an instrument of business
management as field of employment and profession.

                                     Videocon International Ltd.


    1. Meaning :-
         The word advertising originates from a Latin
word “Advertise” which means “To turn To” the dictionary
meaning of the term is “To give public notice or to
announce publicity”.

     “Advertising is any paid form of non-personal
presentation and promotion of ideas, goods or services by
an identified sponsor.”

    It is paid communication because the advertiser has to
pay for the space or time in which his advertisement

     Advertisement has main purposes the real purpose of
advertising is only one, to sell a product, a service or an
idea through effective communication. Advertisement has
other purposes as well as like long term buildups of
corporate image, buildup board loyalty, information
dissemination about a sale, service or event, promote the
morale of sales persons and dealers etc.

                                      Videocon International Ltd.

     2. Classification :-
          The Layman is inclined to view, all advertisement
as being much the same yet, no advertisement situation are
exactly alike. Different companies produce different
products and want to motivate and attract different kinds of
customer groups. So, obviously advertising campaign
would be different.

     The following classification outlines the broad scope
of these differences;

        National Advertising
        Retail Advertising
        Industrial Advertising
        Trade Advertising
        Professional Advertising

     Videocon International Ltd. as well as Videocon group
of companies produces consumer goods, so that they use to
advertise, Nation wide advertising to the ultimate
consumer’s and target market for response of “Buy our

                                         Videocon International Ltd.


     Any advertisement, we see or hear has not been just
prepared easily effortlessly but it is the product of a series
of investigation strategic plans, practical decisions, the final
advertised campaign. Therefore, any advertisement mainly
involves following;

      Research components :-
         To research consumers like & dislike towards the
product or services and than to advertise the product into
the market.

       Strategic components :-
          Strategic plans in firms of objectives market
declination, setting the appropriation developing, creating
strategy and media plans.

       Practical component :-
          Practical component involves decision in regard
to budget expenditure and buying media scheduling and
advertisement constructions including advertisement copy,
layout, and production.

                                     Videocon International Ltd.


     The main goal of any advertisement is to wake a
proper response from the prospective group of people for
whom it is meant. Hence, in creating advertisement
programme-marketing manager must always start by
identifying the target markets and buyer motive. Than, they
can proceed to make the 5 major decisions in developing
advertisement programme, famously knows as 5Ms.

    What are the advertising objectives? (Mission)
    How much can be spent?               (Money)
    What message should be send?         (Message)
    What media should be used?           (Media)
    How result should be evaluated? (Measurement)

     The Videocon International Ltd. handles all these 5Ms
very much carefully and in a specific manner.

                            Videocon International Ltd.

1. Mission.

   What are the objectives ?
          Objectives of Advertising.
          Qualities of Advertising.

                                       Videocon International Ltd.


      It is said that advertisement is nothing but a way of
sharing something effectively, i.e. to say about the product,
its features, significant etc. so that consumer become ready
and willing to purchase the product. The objectives of
advertisement are listed under following heads;

         Preparing Ground For New Product:-
               It is natural that new product needs
advertisement because potential customers have never used
such product earlier. Therefore, advertisement prepares a
ground for that product.

         Creation of Demand:-
              It is universally accepted fact that
advertisement has always been able to generate and create
demand to the largest extant and it is one of the prime

         Reminding Customers:-
               Advertisement is having immersed capacity
to remind the customers and memorized him about the
product and its other features. Now a day, in a cutthroat
competition customer is always flooded with many
products and innumerable players. Advertisement creates
import on his mind hence, it is necessary that our
advertisement gets repeated and reminds him so that it will
ultimately be able to enhance the demand for our goods,
services and ideas.

                                       Videocon International Ltd.

         Facing Competition;-
               Competition exist in all types of business
and no better weapon can be used in this competition batter
other than advertisement. So, in order to inform and
pursued our potential and existing customers in his
cutthroat competition. Advertisement is always important

         Enhancing Reputation:-
               It is wrongly believed that advertisement is
necessary only in starting period of product but
advertisement is continues process. Advertisement that is
prepared smartly and efficiently and in a proper system
withy up to date change can create and generate the
goodwill of the company.

         Changing Attitude and Belief of the Customers:-
                It is fact that prime objective of all
advertising is to change habits and mind set of customers.
So a well prepared advertisement considering innumerable
factors and eliminate in a specified manner can help to
change the attitude and belief f the customers group in large
and individually.

     In India, Videocon group of company is the market
leader in the electronic field and the market share of each
product is also high, the main objective of advertisement of
company is to maintain current demand stage and stimulate
more brand usage.

                                       Videocon International Ltd.


     After setting, the objective of advertising the
advertiser must have some distinctive qualities, which
become helpful in fulfillment of objectives, which are as

      Public Presentation:-
          Advertising is a highly public mode of
communication. Its public nature confers kind of legitimacy
on the product and suggest a standardize offering. Because
many people receive the same message, buyers know that
their motives for purchasing the product will be publicly

       Pervasiveness:-
          Advertising is pervasive medium that permits the
seller to repeat a message much time. It also allows the
buyers to receive and compare the message of various
competitors. Large-scale advertising by a seller says
something positive about the seller’s size, popularity and

       Amplified Expressiveness :-
           Advertising     provides     opportunities     for
dramatizing the company and colour. Sometimes however,
the tool’s at expressiveness many dilute or distract from the

                                       Videocon International Ltd.

       Impersonality :-
          Advertising cannot be as compel as accompany
sales representative. The audience does not feel obligated to
pay attention or responded. Advertisement is able to carry
on only monologue, not a dialogue, with the audience.

    In Videocon group of companies all these qualities are
maintained in their advertisement.

                              Videocon International Ltd.

2. Money
   How Much Can Be Spend ?
   How To Spend ?
   Where to Spend ?
            Introduction
            Area of Decision
            Factor Affecting Advertising Budget.
            Administration and Control.
            0% Interest

                                      Videocon International Ltd.


     After determining advertising objective, the company
can proceed to establish its advertisement budget for each
product or for all products. The role of advertising is to
increase the product’s demand curve. The company wants
to spend the amount required to achieve the sales good. But
how does it know that it is spending the right amount ?

     In advertising the principle instrument used in
performing these functions is the advertisement budget. In a
sense, the entire administrative process reviewing past
operation, controlling on going operation and planning a
head center on the budget. Budgeting encourages previous
planning. It helps to keep expenditure with in
predetermined limits.

                                     Videocon International Ltd.

             AREAS OF DECISION

     An advertising budget encompasses two areas of

      The total amount of rupees to be spend for
       advertisement is termed as appropriation.
      Now these rupees will be spend.

     Videocon group of companies has spend Rs. 38 Cr.
And today it has reached to 5000 Cr. Approximately in
advertisement media. By now the company had estimated
Rs. 565 Cr. Approximately for this purpose, which includes
new product launching, creation of new market and
increase in market of each product, which they produce.

     Therefore, we may say that Videocon take good step
and spend money at high level to advertise, its product and
handle if properly.

                                      Videocon International Ltd.


    Generally, the following factors must be considered by
most of the companies while preparing the advertising

         Stage in Product Life Cycle :-
                New product typically receive large
advertising budget to build awareness and to gain consumer
trail. Established brands usually supported with Lowe
budget as ration to sales.

        Market Share and Consumer Base :-
               High market share brands usually require
less advertising expenditure as percentage of sales to
maintain their share. To build share by increasing market
mix or market share require large advertisement budget.

         Competition and Cluster :-
              In a market, with a large number of
competition and high advertisement spending a brand must
advertise more heavily to the heard above the noise not
directly competitive to the brand creates a need for heavier

         Advertising Frequency :-
              The number of repetitions needed to put
across the brand’s message to consumers also determines
the advertisement budget.

                                      Videocon International Ltd.

         Product Substitutability :-
                Brands in a commodity clad require heavy
advertising to establish a differential image. Advertisement
is also important when brand can offer unique physical
benefits or feature.

         Size of Budget:-
               Amount of money to be spend in
advertisement is of vital concern to the company and to the
agency chosen to serve the company.

     Above noted all factors are taken in to consideration
by advertisement department of Videocon. But in present
stage of competition in India for electronic goods they give
more weight age to competition and cluster, so they
advertise its product more frequently and prepare budget on
that ground.

                                       Videocon International Ltd.


      A successful budget system requires constant and
careful check on all expenditures; care must be taken to see
that advertisement practice does not run counter to the plans
worked out carefully and systematically and incorporated
into the budget. This will require periodic checking of
expenditure especially for such items as stores, display
special sampling campaigns, conversion expenditure and
similar items that are not subject to specific contracts.

     In Videocon complete and systematic record are kept.
Such records consist of total amount appropriated for
advertisement and complete detail and listing of how this is
to be expended. Not only the amount for the anticipated
expenditures for each items are also recorded.

      In Videocon control and administration budgets
maintain by proper checking of sales result by products and
by sells territories. Based on these cheeks the budget is
changed to harmonized will the philosophy, which directed
its creation.

                                      Videocon International Ltd.

                   0% INTEREST

     It is well known act that the problem of money arises.
Is prevailing everywhere. In addition, in this trend the
demand and wants o the customers are ulti9mate when one
demand is satisfy the other demand is emerges.

    The most common demand of most of the customer is
about electronics and home appliances.

      For easy consumption of desired product by
customers. The Videocon has given very attractive scheme
i.e. to provide its product in the installment basis at 0%

     For these purpose, total management decided the price
of the product, which are given on the installment basis at
0% interest. The company not only has to see the benefit of
the customer but also keep in mind that there should be no
loss out of such schema. In addition, they have to achieve
or reach the target so decided by them while designing such

     To decide the price and target of sales volume out of
such scheme is not an easy task but Videocon does this with
more effectively and efficiently.

     The finance provided in Rajkot by ICICI, Bajaj
Finance and GE countrywide. The interest for these finance
may very with a change in scheme, installments provided
amount is it depends on financial institution from where the
finance is taken.
                               Videocon International Ltd.

3. Messages
   What To Say ?
   How To Say Logically ?
   How To Say It Symbolically ?
   Who Should Say It ?

             Introduction
             Advertising Copy
             Advertising Appeal
             Advertising Layout
             Slogan

                                       Videocon International Ltd.


     Having defined the desired audience support, the
company moves to develop an effective message, well
designed message should gain attention, hold interest
around desire and generate action (AIDA Model) in
practice, few messages take the consumer all the way from
awareness through purchaser but the AIDA framework
suggests the desirable qualities.

     Formulating the message will require solving,

     a)   Advertising Copy
     b)   Advertising Appeal
     c)   Advertising Layout
     d)   Slogan

     Each advertisement of the company indicates accuracy
and perfection about all discussed point. Its structure format
and highly attractive and most effective. In addition,
company chooses the super star models for punching a new
product with blast.

    Thus, Videocon has selected today’s super star
Shahrukh Khan for launching its new product, i.e., Internet

                                       Videocon International Ltd.

              ADVERTISING COPY

     Advertising copy covers all items appearing in an
advertisement the written words, pictures, design, label and
logo, it is prepared by an expert copywriter. It is a written
or spoken material of advertisement communication and
includes the headline name and address of the advertiser as
well as the text of the message. Advertising copy is a
creative business, demanding a lot of imagination and
foresight. Thus, advertising copy should be in simple, easily
understandable attractive and persuasive language.

     In Videocon the message formation has given more
weight age as for format of message is one of the most
important part in advertisement. It is suggested by the
experts, which are appointed by company and finalized
after taking opinion of the head of the advertisement
department and president of marketing.

                                       Videocon International Ltd.


     The communication has to figure out what to say to
the target audience to produce the desire response. His
process has been variously called the appeal theme, Idea or
unique selling proposition. It amounts to formulating some
kind of benefit motivation, identification or reason why the
audience should think about the product in short, it
represents the specific point of view or idea to be stressed
in the advertisement.

      The three types of appeal are,

       Rational appeals to the consumers self interest.
        They show that the product will produce the
        claimed benefit.
       Emotional appeals attempt to stir up some negative
        or positive emotion that will motivate purchase.
        Communicators have worked with fear, guilt and
        same appeal and getting people. Communicator also
        uses positive emotional appeals such as humor,
        love, pride and joy.
       Moral appeals are directed to the audience’s senses
        of what is right and proper.

     Videocon group of companies mostly used to
advertisement their product with positive emotional
appeals. Some time they also use rational and moral appeal
for special advertise.

                                         Videocon International Ltd.


    An advertisement layout is a sub part of advertising
copy. Advertising layout deals with proper and attractive
physical arrangement for the best presentation of the
message or sales communication.

     In preparing the layout of an advertisement, such care
should be taken to ensure that it makes a proper appeal.
And it should be designed to provide a logical, clear,
unified present at in of the advertising message. It also must
be ensure that various element of the layout are properly
balanced. These elements are;

     1.   Headline :-
                The headline comes first. It must be in fresh
wording. If, it is well worded, people will be stimulated
who read he message. So, it should e clear, simple, short
and attractive to hold the attention of the customer.

     2.    Illustration :-
                 Illustrations are in the form of line drawings,
cartoons, pictures, symbol, photographs for creating
interest, attracting attention and desire. Illustration is the
best and most effective way of communicating of ideas at a

                                        Videocon International Ltd.

     3.   Colour :-
               Colour is an important ingredient of
advertisement, colour gives a great pleasure to eyes and
also help to gain an attention, these are most popular colors
like blue, red, green, black and yellow used in
advertisement. Each colour has an individual significance
in communication of ideas.

     4.   Body Copy and Text:-
                It is the advertisement message. It is called
the heart of advertising copy. It is the sales talk performing
AIDA function of salesmanship. It will point out selling
point of the product where it can be secured what is its
price, how it is to be used. It gives all essential information
as well as guidance to the prospect.

                                      Videocon International Ltd.


     A good phase used and repeated often in
advertisement becomes a slogan. It should be original and
remember able. And a slogan should be short, simple and
rhythmic enough to be catchy.

    As far as Videocon International Ltd. is concerned, it
produces such a fabulous and alluring advertisement after
emplacing on each element.

    For headlines, it always uses fresh and meaning full
combination of wordings.

    For illustration, it uses the alphabet E on either side,
which represents “Electronics to Energy”.

     For colour, mostly it uses Blue colour to have an
instant attention of viewers.

    For slogan, it has meaningful and masterly slogans,

        Bring Home The Leader
        We Love Winning, We Love Videocon
        India Today The World Tomorrow
        Right Movement for Right Time
        ‘V’ Are The Future
        Technology For Health & Pleasure

                               Videocon International Ltd.

4.    Media
    How To Communicate ?
    Selecting The Media

             Introduction
             Selection Of Specific Media
             Media Scheduling

                                       Videocon International Ltd.


    One of the most vital decisions in the developing n
advertising strategy is the selection of media to be
employed. A good selection of advertisement leads
organization towards success. Because it is indeed a vehicle
by which an advertiser or manufacturers convey their
message to large group of customers regarding particular

     Selecting media is a tough task because not only it is a
choice making exercise but also because it has to operate in
the area of the psychology where nothing can be decided
accurately. Each of the mass media has specific
characteristics, potentials and liabilities that must be taken
into consideration on one hand and the prospective type of
group segment of customers on the other had when
selecting a medium for advertising effort.

                                        Videocon International Ltd.


     The term media is plural for medium. In advertising
term medium is channel of communication such as,
Newspapers, Magazines and Vehicles for currying, the
sales message of advertising to the customer.

     The advertising media may be direct or indirect. Direct
method of advertising refers to such methods used by which
he could establish a direct contract with the perspective
consumers. Indirect method of advertising is the use of a
hired agency spreading the information, mostly media are

     Videocon International Ltd. make selection of media
on following bases;

          Target audience media habits
          Media spread and effectiveness
          Message
          Lost
          Frequency
          Product

      The main types of media exploited by Videocon are,

      1.     Print media
      2.     Out door advertising media
      3.     Direct mailing advertising media
      4.     Audio visual advertising media

                                       Videocon International Ltd.

      1.  Print Media
               Advertising in the print media is the oldest
and the largest on terms of advertising. The advertising
spend more money on print media that any other media. In
print media, there are two types of media, which are given
as under,
        NEWS PAPER
                Newspaper is widely needed by the people
in cities. The newspapers have their circulating in almost all
language. Therefore, the large number of people reads the
advertising message given in newspaper. So that, the
advertising message in it reaches to large number of people.
Newspaper advertising is easy to prepare and newspaper
are a relatively inexpensive medium.
     The Videocon International Ltd. uses newspaper
advertisement media. They are giving there advertising in
various newspapers namely Times of India, Gujarat
Samachar, Sandesh, Indian Express and Economic Times
                Magazines are the second publication
medium available to an advertiser. The magazines are
published weekly, fortnightly, monthly etc. the newspaper
advertising has a very short life but the magazines
advertisement has longer life because magazines are to e
read again and again so they leave a lasting effects on
minds of people. The magazine advertisement creates
prestige, reputation and image of quality.
    The Videocon International Ltd. uses magazine
advertisement in many magazines as Chitralekha, India
Today, Divya Bhaskar etc.
                                       Videocon International Ltd.

      2.  Out doors Advertising Media
               Out door advertising is the oldest from of
advertising. Today’s outdoor media of advertising are
nothing but a retirement of the ancient method of delivering
message to a large group of people. Outdoor media include
outdoor advertising in several forms such as posters, wall
painting, boarding, dealer’s board, sign board, electric sigh,
highway advertising.
      3.    Direct Mailing Advertising Media
                 This method is direct in its approach
therefore; it referred to as “Direct Advertising” by this
method the advertising message is directly addressed to the
prospective customer. In this media, we find written
message to the potential buyer. Direct mail advertising
media only take variable forms such as the booklets,
leaflets, folders catalogs and gift articles.
      4. Broadcasting Advertising Media
               In broadcasting advertising media, there
coverage is very wide. This is very effective advertising
media and it is gaining popularity in our country. There are
mainly two medium of broadcasting media,
               The radio advertising is broadcasted in
almost all places. This media has become very popular in
village or urban area. The advertisement through the media
is given to keep in mind the general and special interest of
people. This media is very economical and advertising
message reaches to the customers.
      Videocon International Ltd. does not give regularly
their advertisement on radio compare to the T.V.

                                      Videocon International Ltd.

                This is another broadcasting media in the
last useful of decades, the television is a home and family
media. The media covers most of people and reaches very
lastly. To television in national, network the advertisers
reach to the national market. The message is more effective
and impressive especially in the colour television, which
had added new dimension television advertising.

     Through this media, the qualities and characteristic of
the product can be well explained. It provides a scientific
ambition of features of screened, sight and option that not
other medium has been able to provide.

                                     Videocon International Ltd.


    All the advertising expenses prove worthless the
advertising of products is not given on a proper time; here
the media scheduling is essential for the effectiveness of

    The company uses various scheduling for its particular
product usually known as Macro scheduling and Micro

    1.   Micro Scheduling
              The company has to decide how to schedule
the advertisement in relation to seasonal and business

    2.     Macro Scheduling
               The macro scheduling problems calls for
allocating expenditure advertisement within a short period
to obtain the maximum impact.

    Both of these are very carefully handle in Videocon
and proper allocation is made for both with respect to
advertisement budget by advertisement department.

                               Videocon International Ltd.

5.     Measurement
    What Should Be The Result ?

              Introduction
              Aspects Touching Measurement

                                       Videocon International Ltd.


     Good planning and control of advertisement is largely
depending upon the measurement of advertising
effectiveness. By measurement, they can know that which
advertisement and what elements of various advertisement
get the best response, what position produces to better
results, what medium pulls better, which type of media
proved effective in particular region etc. and by these
company can wrap up, how well a whole advertising
campaign is progressing.

     Really, how will a particular advertisement or
campaign performs is largely determine by the knowledge
and skill of the people preparing it. People who are
sensitive to the measuring situation and proficient in the art
of communication are more likely to produce effective

      So, Videocon, the principal reasons for testing all, to
avoid costly mistakes, to predict the relative strength of
alternative strategy and tackles and to increase the
efficiency of advertisement.

                                       Videocon International Ltd.


     Measurement of advertisement is done through
following four questions,
     (1) What to test ?
               Most measurement of advertisement
effectiveness is of an applied nature dealing with specific
ads and campaigns. Many company develop an
advertisement campaigns, put it into the national market
and then evaluate its effectiveness.
     A    Communication Research
                Communication effects research seeks to
determine whether an advertisement is communication
effectively, called copy testing.
     Videocon use to direct rating method for advertising
presenting. They ask directly to consumers and dealers to
rank alternative ads. These ratings are usual to evaluate ads
attention read through cognitive effective and behavior
     Videocon in also interested in measuring the overall
communicating impact of a completed ads campaigns. They
generally measure that what extent did the ads campaigns
increase brand awareness, state brand preference.
     B    Sales Effect Research
               Communication effect         research Helps
Company to access ads communication        but it reveals the
impact on sales. It is generally harder    to measure, than
communication effect. Because sales are    affected by many
factors besides advertising.

                                      Videocon International Ltd.

     Videocon is only interested in finding our whether
they are over spending or under spending on advertising.
To last research, they found that they are using more TV
advertisement as they previously used.

     Therefore, we may cay that Videocon is striving to
measure the sales effect of advertisement expenditure
instead of setting only of communication effect research.

     (2) When to Test ?
                Testing is appropriate at any stage of
advertisement process. In the planning stage, it may be used
to test the efficiency of alternative appeals or themes. To
the execution stage, it may be a matter of presentation. The
quality control stage, advertisement may be tested for
standard of performance. Campaigns may be taste after they
have run to determine what results are achieved.

      So, the stage of current competition of Indian
Electronics World, Videocon is used to advertising
effectiveness continentally, mostly two or three times in a

      (3) How to Test ?
               There is no single best way to test. In a
sense, every test is an experiment to measure the
relationship between advertisement variables on the
stimulus side and changes in pre-disposition and other
relevant behaviors on the response side.

                                     Videocon International Ltd.

     (4) Where to Test ?
              Where is the test to e administrated? In a
laboratory or in the field ? How responses are obtains?
Forced or voluntary.

     Videocon generally test and effectiveness in field as
well as in laboratory because of to overcome from the
limitation of both the method.

     They generally test their advertisement effectiveness
on the following criteria,

        Validity
        Reliability
        Relevance

     In short, we may say that in Videocon advertisement
effectiveness testing is done very systematically and it
helps to minimize the cost, to increase in sales and to
increase in brand awareness and as well as in company’s

                                     Videocon International Ltd.


     Marketing research can be defined as objective and
systematic collection recording and analysis of data
relevant to marketing problems of a business in order to
develop an appropriate information base for decision-
making in the marketing area.

     “Marketing research is the systematic gathering,
recording and analyzing of data about problems relating to
the marketing of goods and services.”
                     - American Marketing Association

                                       Videocon International Ltd.


     To determines objective is first in the planning process
once target is decided the ways are easily found out. The
following are the major objectives of this research study :-

 To find out consumer awareness about various brand.
 To study the preferences and perception of customers
  regarding various brands.
 To find out influence on buying decision process.
 To find out price consciousness of customers.
 Customer’s satisfaction regarding product and
 To study on brad loyal and brands.
 To focus attention on a particular market segment with
  tailor made marketing campaign.

                                           Videocon International Ltd.

Q-1.    How much consumers are ready to pay for 29
inch Conventional TV ?

 Option (Price)        Consumers response            Percentage

  15000-18000                  44                         44%
  19000-21000                  22                         22%
  22000-25000                  23                         23%
  Above 25000                  11                         11%
     Total                     100                       100%
                                                       Above 25000
         Consumers response   Percentage

    Conclusion :
                   I find out that most of the consumer is
ready to pay 15000 to 18000 for 29 inch conventional TV.
The actual price of it is Rs. Between 19000 to 21000 so
company should reduce the price to attract the consumers.

                                       Videocon International Ltd.

Q-2.     How much consumer are ready to pay 29 inch
Flat TV ?

 Option (Price)        Consumers response        Percentage

  19000-21000                  46                     46%
  22000-25000                  25                     25%
  25000-29000                  20                     20%
  29000-31000                   9                     9%
     Total                     100                   100%
         Consumers response   Percentage

     Conclusion :
                   From the above graph I find out that
most of the consumers are read to pay Rs. 19000to 21000
for 29 inch Flat TV but its not like that no body is ready to
pay high price. But if company reduces its price than they
can cover more market.

                                                Videocon International Ltd.

Q-3.         Which brand do consumer prefer ?

       Option             Consumers response              Percentage
                          (No. Of consumers)
       Videocon                    28                          28%
        Philips                     6                          6%
         Sony                      23                          23%
          LG                       20                          20%
         BPL                       20                          20%
        Others                     13                          13%
        Total                     100                         100%
        50                                                      Sony
        40                                                      LG
        30                                                      BPL
         0                                                      Total
             Consumers response         Percentage
              (No. Of consumers)

       Conclusion :
                  From above graph I find out that
consumer prefer 28% Videocon, 6% Philips, 23% Sony,
20% BPL, 20% LG and 13% other. So, consumer prefers
Videocon to the other brand, but difference is less so
company has to concentrate it. The main competitors o the
company is Sony and others like; LG, BPL etc.

                                             Videocon International Ltd.

Q-4.         Why would consumer like buying 29 inch TV ?

       Option             Consumers response           Percentage
                          (No. Of consumers)
    Prestige                       10                       10%
    Upgrade                        14                       14%
  Good viewing                     64                       64%
     Others                       12                        12%
     Total                        100                      100%
        50                                              Upgrade
        40                                              Good viewing
        30                                              Experience
        20                                              Others
                Consumers       Percentage
             response (No. Of

       Conclusion :
                     From the above graph I find out that
most of people want to buy 29 inch TV because of good
viewing experience so we can say that company should take
care of this and accordingly launch the product.

                                           Videocon International Ltd.

Q-5.     Which features do consumer prefer from 29
inch TV ?

     Option              Consumers response          Percentage
                         (No. Of consumers)
Picture-in-picture                20                      20%
 Sound wattage                    35                      35%
 High resolution                  35                      35%
      Looks                        10                      10%
      Total                        100                    100%
      80                                          Picture-in-picture
      60                                          Sound wattage
      40                                          High resolution
      30                                          picture
      20                                          Looks
              Consumers       Percentage          Total
           response (No. Of

    Conclusion :
                     From the above graph I find out that
consumer prefer sound wattage and high-resolution picture
from 29 inch TV. So company has to concentrate on these
two features to attract consumer.

                                           Videocon International Ltd.

Q-6.     How much price will consumer be able to pay
for projection TV ?

     Option             Consumers response           Percentage
                        (No. Of consumers)
 75000-100000                    60                       60%
 100000-120000                   21                       21%
 120000-150000                   11                       11%
 Above 150000                     8                       8%
     Total                      100                      100%
      60                                             75000-100000
      50                                             100000-120000
      20                                             Above 150000
      10                                             Total
              Consumers       Percentage
           response (No. Of

    Conclusion :
                    From the above graph I find out that
consumer are ready to pay 75,000 to 1,00,000 that means
fewer prices for projection TV. But I also find 21% people
who are ready to pay 1,00,000 to 1,20,000.

                                      Videocon International Ltd.

Q.7.    Which brand TV do you have ? Which brand
TV do you want to replace ?
     From this question I find out that they are many brad
which consumer prefers like VIDEOCON, SANSUI,
THOMSON, SONY, ONIDA etc. but most people have
VIDEOCON and they want to replace VIDEOCON only.
BPL and SONY are also most demanded brands and they
are giving great competition.

Q.8.    What size TV do you have? Which size TV do
you want to replace ?
     From the viewpoint of my survey I find that every
people have 21 inch TV and they want to replace 29 inch.
So, company concentrate on the requirement of people why
they prefer this size TV and accordingly pay attention on

Q.9.     Your opinion about high – end TV
     I find out that people prefer TV up to 29 inch not more
than that because they give more important to size at house
and after their hobbies for big size TV.
Q.10.    Your opinion about VIDEOCON
     From my survey I find out that everyone prefers
VIDEOCON but they want more quality less price and also
they feel that company provides less after sales services.
So, company’s product is good and quality is also good but
company has t concentrate on after sale service, which is
the most important point from the present scenario.

                                       Videocon International Ltd.


     Channels of distributions indicate routs or pathways
through which goods and services flow or move from
producers to consumers. Generally, producers in today’s
market do not sell the goods directly to final consumers.
However, there is always a market intermediary between
them. These intermediaries may be retailers, distributors,
dealers etc.

      Videocon International Ltd. also sell its product with
the help of dealers. Videocon has over 4000 dealers
covering almost each and every part of India. Dealers of
Videocon are found in metropolitan cities, small cities and
in towns with maximum number of customers who want
qualitative products. Videocon can keep a large market
share because of the help of dealers. With the help of
dealers, they can satisfy their aims, objectives and targets.
Dealers of Videocon group give a good mouth word of their
product and provide after sales services. Dealers are given
returns for their extraordinary services. They are provided
with rewards at time and percentage on profit margin.
Dealers who make maximum sales are awarded with big
gifts etc.

    I have also visited with Videocon dealers as a part of
my project report. In this regard, I found good response
from dealer like Business Center, Rajkot.

     Many of the dealers of Videocon does not sell only
one brand product but they are also engaged in sale of other
company’s product like BPL, Onida, LG, etc.
                                       Videocon International Ltd.

     Thus, by making the survey through dealers, we can
find the Videocon International Ltd., really stand at the 1st
place on at the top place all over India.

                                        Videocon International Ltd.


      Viewing Videocon International Ltd. from every
angle, it can be conclude that over all the unit is progressing
god because Videocon International Ltd. has provided
excellent quality of product due to sophisticated
technology, computer used and highly qualified technical
staff. By this way, they can able to create a good demand
for their product and satisfy the consumer.

    As far as advertisement is concerned, this company’s
advertising department is effective and they spend lot of
money for the advertisement and attract the customer.

     It can be said that credit of success of the company
goes to the management as well as workers and employee
that Videocon International Ltd. has bring bright future.

    In short, its grip on every aspect of the business is tight
which helps it in fight every uncertainty. It is continues to
do well, sure its future will be full of success.

                                Videocon International Ltd.


Marketing Management             - Philip Kotler

Advertising Management           - Philip Kotler


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