VIDEOCON MOBILE PHONES COMPANY DESCRIPTION: Videocon is an industrial conglomerate with interests based all over India.

TheCompany has manufacturing sites in India as well as China, Poland, Italy andMexico. The company has an annual turnover of US$4.1 billion which makes it oneof the largest consumer electronics companies in India. Videocon has expanded itsoperation globally since 1998 especially in the Middle East.Following its expertise in the consumer electronics, the company has decidedto launch its new line of Mobile phones in India. Videocons venture into the fiercelycompetitive market with global players like Nokia, Samsung, Sony Ericson and otherleading brands will bring some Indian flavor to the market. So far no Indian brand ofcell phone has tasted a phenomenal success in the cell phone industry.

The numberof mobile users around the world is rising dramatically, especially in fast growingmarkets like India. Success in high-growth markets is not only good news forVideocon business, but for people in our country who are discovering the benefits ofmobile communications in their lives and even their livelihoods. Videocon wishes toplay a role in boosting growth by working on a number of fronts with operatorcustomers, local authorities and through the UNICT Taskforce to increase theavailability, affordability, and even usability, of mobile communications in the country.Mobile phone industry is an industry with seamless boundaries which isbringing completely new mobile devices, services and ways of using mobile devicesboth socially and professionally. This is already clear from the phenomenal success of camera phones as well as the growing use of smart phones, not just for makingcalls, but also for computer-like applications such as email, web browsing and musicdownloading. With this increasing demand for new generation devices and servicesand more and more users in growth markets gaining access to mobilecommunications, we now expect the global number of mobile subscriptions to reachthree billion by 2010.While some markets have moved closer to maturity, other high-growthmarkets have also arrived; customer dynamics is shifted as new players arrive andothers move towards consolidation; competition has intensified and began changingface; even the underlying technologies of the business remain in flux, as we movefrom traditional cellular networks to 3G, IP, and alternative access technologies.Considering the current market situation in India where the GSM platformdominates over the CDMA platform the Videocon mobiles would be based on theGSM technology. The company would try to establish itself in the mid range segmentthat is in between INR 2000 INR 10,000. Videocon mobiles would also like to tapsome upper middle class segments by introducing some high end PDA phones forbusiness people that are more affordable than the nearest competitor. The mainemphasis will be on youth and general public.

BUSINESS MISSION: Connecting is about helping people to feel close to what matters. Wherever,whenever, Videocon believes in communicating, sharing, and in the awesomepotential in connecting and focusing on people, and use technology to help peoplefeel close to what matters, then growth will follow. In a world where everyone can beconnected, Videocon will take a very human approach to technology.Videocon is committed to create a better quality of life for the people and furthering the interests of the society. The companys mission is a reflection of continuity and change. Videocon mobiles is poised to delight and deliver beyondexpectation through ingenious strategy, improved technology and innovative anduser friendly mobile phones attracting the masses with an Indian feel. The company is committed to deliver quality handsets suiting the Indian conditions to suit the customers. Videocon mobiles would be put on java platform with customized user interface. The company will try to make the user interface intuitive and responsive which is hassle free in operation and easier to understand by everyone. Apart from the interface the main stress would be on the design of the phone which is distinct and has an aesthetic sense. Videocons

future success depends on delivering great experiences to the customers by creating products and solutions that work seamlessly and areappealing.

MARKETING OBJECTIVE: With the outstanding market potential the objectives on volume and share arenearly limitless for the coming years. Since there is such a huge market that needsthe supply of phones as long as the company has a good brand image the companycan expect that all of its stock should be purchased however setting an initial goal of70 thousand units is not unreasonable and not to cost problematic.This will also establish a decent market share. However the market share ofindividual phones is ever changing as Videocon mobiles is competing with acompany which almost dominates the market share (Nokia,Sony ericsson andSamsung) and image. The Videocon mobiles will try to capture a sizeable marketshare and gradually improve to be in the race with the established players.For sales the marketing objective of the company will be to establishVideocon mobile phones in the market alongside its competitors such as Nokia,Sony Ericson, and Samsung etc. The primary stress of the company would be uponthe mid-range segment since its the most active market segment. Videocon mobile will provide cheaper multimedia phones in this segment with added features at thesame time maintaining the quality and standards to distinguish it from the other mid-range competitors (product differentiation).

Consumer targets are high school,college and graduate students who need one portable multifunction device.Videocon mobiles is also interested in the PDA (business class) phones withtouch-screen and windows mobile OS. The consumer targets would be the middle-upper income professional to coordinate their busy schedules and communicate withcolleagues, friends and family.As india is set to become a 3G nation by the next year, Videoconmobile would like to exploit this technology by manufacturing 3G enabled handsetsboth in the mid-range and its high end line up of cell phones. One of the keybusiness target for the company would be to partner with large cell phone serviceproviders and provide handsets cheaper than their original price in a combo plan ona contract basis (this is hugely popular in the US).

SITUATION ANALYSIS INDUSTRY ANALYSIS TRENDS:By most accounts, India is among the world's fastest-growing markets for mobilephones. The country has some 170 million subscribers and adds 6 million to 7 millionmore each month. (China, in contrast, adds 5 million subscribers, and the U.S. 2million subscribers a month.) Recognizing this potential, several global telecomgiants jumped into the fray when the Indian government first opened up the country'stelecom market to private enterprise in 1994. Among them, one company -- Finland-based Nokia -forged ahead of rivals and today commands a lead position in marketshare for mobile phones (also called "handsets"). In specific segments, such asGSM telephony, Nokia's market share in India is as high as 70% FACTS AND FIGURES: The cell phone industry is one of the fastest growths besides the Internet. Cellphones have gone through a huge change and its market has expanded globally.The current value of Indian tele market is estimated to be over US $10 billion whichis projected to rise to US $54 billion in 2012. The industry is embracing the mobiletechnology in a big way. Four million subscribers are being added every month fromthe past few months, around 18% cell phone users are willing to change theirhandsets. There are close to 350 million mobile service subscribers in the country ascompared to the 30 million PC users!.The GSM subscribers based has crossed the200 million mark this year which is growing at the rate of 11.89%. Huge opportunity

India has second largest market after China. Today 4-5 million new subscribers every month. Indian consumers tend to change their phone very fast

The cell phone market is increasing very fast with todays ever -emerging technology and innovation in improving cell phones. Today, society is living with advance technology and everyone wants to keep pace with the new technologies. Cell phone industry is growing larger because it has become a necessity. Parents are getting mobile phones for their teens because they want to communicate in case of an emergency and the wireless carriers have made it easy to add users to their existing plans . Mobile phones have now become an extension of peoples personalities; many are of the view that mobile define their individuality as well. It has even been found that more Indians are using mobile internet rather than the surfing the net from computer. Indian is going to be 3G enabled next year which is surely going to boost the 3G sales. As the market expands fulfilling the needs of mobile users by providing them attractive services, mobile phones are becoming a new vehicle for reaching out to the mobile generation. The Indian mobile scenario seems to be all set for the next stage-expansion and consolidation. COMPETITORS: The cell phone market is one of the fiercely competitive market in India. With so many cell phone giants such as Nokia, Sony-Ericsson, Samsung , L.G. etc. The road ahead for Videocon in such a situation would not be a cake walk. The closest and most dominant competitor is Nokia.

Competitor Analysis: Nokia: Nokia, a Finnish cell phone giant, has become the world's No.1 makerof cell phones, ahead of rivals such as Motorola, Samsung and others. Thecompany's products are divided primarily between four divisions: mobile phones(wireless voice and data devices for personal and business uses), multimedia (homesatellite systems, and mobile gaming devices), networks (wireless switching andtransmission equipment used in carrier networks), and enterprise solutions (wirelesssystems for businesses).Nokia wants to be the leader in third-generation (3G) wireless networkequipment. The company has slowly becoming the supplier to half of the world'scommercial 3G networks. By doing so, Nokia swims to the top of the wirelessnetwork infrastructure market led by Ericsson. To capture the international market,Nokia rolled out new business and consumer models with color screens worldwide.The company also gained a piece of the Chinese market by delivering a unit ofmodels capable of English and Chinese text recognition to be sold by vendors inChina. Key numbers: Company Type Public (NYSE: NOK; Helsinki: NOK1V) Fiscal Year-End December

2005 Sales (mil.) $40,465.0 1-Year Sales Growth 2.1% 2005 Net Income (mil.)- $4,280.0 1-Year Net Income Growth- (1.5%) 2005 Employees- 58,874 1-Year Employee Growth- 6.1%

Sony-Ericsson: Sony Ericsson, a 50:50 joint venture of Sony Corporation and Ericsson wasestablished in October 2001. Their mission is to establish Sony Ericsson as the mostattractive and innovative global brand in the mobile handset industry.Sony Ericsson Mobile Communications is a global provider of mobile multimediadevices, including feature-rich phones, accessories and PC cards. The productscombine technology with innovative applications for mobile imaging, music,communications and entertainment. The net result is that Sony Ericsson is anenticing brand that creates compelling business opportunities for mobile operatorsand desirable, fun products for end users.Sony Ericsson Mobile Communications was established in 2001 bytelecommunications leader Ericsson and consumer electronics poTheyrhouse SonyCorporation. The company is owned equally by Ericsson and Sony and announcedits first joint products in March 2002.Sony Ericsson products have universal appeal and are different in the key areas ofimaging, music, design and applications. The company has launched products thatmake best use of the major mobile communications technologies, such as the 2Gand 3G platforms, while enhancing its offerings to entry level markets.Sony Ericsson undertakes product research, design and development,manufacturing, marketing, sales, distribution and customer services. Globalmanagement is based in London, and R&D is in STheyden, UK, France,Netherlands, India, Japan, China and the US. The management team is led byPresident Hideki Komiyama, a former senior executive of Sony Europe and one ofthe key players in the growth of Sony in Europe; and Executive Vice-President andHead of Sales Anders Runevad, the former President of Ericsson Brazil.

Samsung: The digital age has brought revolutionary change and opportunity to globalbusiness, and SAMSUNG has responded with advanced techno-logies, competitiveproducts, and constant innovation. From its inception as a small export business in Taegu, Korea, Samsung has grown to become one of the worlds leading electronics companies, specializing in digital appliances

and media, semiconductors, memory and system integration. Today Samsungs innovative and top quality products and processes are world recognized.2008-Samsung takes No. 1 spot in U.S. cellphone market 2006-Unveiled 10M pixelcamera phone . 2005-Released the world's first 7 mega pixel camera phone.2003-SAMSUNG brand value ranked 25th in the world by Interbrand.2002-Launch of Their mobile phones in which the new concept UFB-LCD is introduced , Launched new high-definition TFT-LCD col Their cellular phone. Motorola: Motorola is the No. 2 manufacturer of wireless handsets after global leader Nokia. After a previous reorganization, its remaining operations have been focused in four business segments: connected home solutions; government and enterprise mobility solutions; mobile devices; and networks. The company generates nearly 60% of sales through the manufacture and sales of wireless handsets and related products

SWOT ANALYSIS: STRENGTHS Videocon has largest network of distribution and selling as compared to other mobilephone company in the world. It is backed with the high quality and professional teamin the HRD Dept. The financial aspect is very strong in case of Videocon as it hasmany more profitable business. The product being user friendly and have all theaccessories one want that is why is in great demand by Indian people. Wide rangeof products for all class. The re-sell value of Videocon phones are high compared to other companys product.

Videocons Product are backed with a high quality professional team and could have a huge advantage following its long expertise in R&D in different countries. Videoconhas also a wide range of products and high product quality with global warrantee. WEAKNESS: Videocon has many strengths and some weakness. Some of the weakness includesthe price of the product offered by the company. Some of the products are not userfriendly. Not concern about the lower class f the society people. Not targetingpromotion toward them. The price of the product is the main issue. The servicecenters in India are very few and scare. So after sales service is not good.Videocon has also incurred high chain costs which needs to be reduced. OPPORTUNITIES: Videocon has ample of opportunity to expand its business. With the wide range inproducts, features and different price range for different people, it has an advantage over the competitors around. With the opportunity like Telecom penetration in India being at the peak time, Videocon has an opportunity to increase its sales as well asthe market share. As the standard of living in India has increased the purchasingpower of the people as increased as well, so Videocon has to target right customerat right time to gain the most out of the situation. Need to Increase their presence in the CDMA market, which they are justentering, as well as 3G and Edge. New growth markets where cell phone adoption still has room to go, includingIndia and other countries. Joint venture in technology.

THREATS: Videocon has many threats to tackle to maintain its position as market leader. Thethreats like emerging of other mobile companies in the market.The companies likeNokia , Motorola, Sony Eriksson, Samsung etc. These companies have come to thestand of tough competition with Videocon in the field of Mobile Phones. Threats canbe like providing cheap phones, new features, new style and type, good after salesservice etc. So, Videocon has to keep in mind the growing competition around. Videocon has to make strategies to tackle problems in the present and the nearfuture. The growing demand of WLL network can cause drop in sales for Videocon,as it provides many less CDMA phones to the customer. Looking mainly at the competition that would take away Videocon marketshare. Government legislations that hinder Nokias development as a company (total cost of 3G licensing in Europe is 110 billion euros). Higher import charges. Indian consumer becoming fans of Chinese KIRFY phones is also a bigthreat which has swept a large number of lower middle class segment