Name : AMRISH DOGRA

NAMRATA JAIN
NEHA MALIK
NIDHI ARORA
Section : B
PGDBM : 2006-08

A BRAVE NEW WORLD OF GREAT VIEWING CHOICES

INTRODUCTION
 Introduced in India in September 1959.
 Captured Indian market in 1975 with the launch of SITE to broadcast in six
dispersed states.
 1982 was a landmark with the color transmission of Asian games via INSAT-1A.
 By the end of 1990, there were 22 million cable television households.
 CTV in India witnessed a growth rate of over 13% last year (2005-06).
 Break up of revenue for the entertainment industry
 Demand for CTV over the years

16000

14000

12000

10000 36.6

8000
25.6 27.9
30.2
6000 24.1
24.7
19.6
4000
14.2
13.4 11.3 13.6
12.7
2000 10.6
10.3
8.7
0
1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Series1 1372 1755 2189 2990 3893 4832 5252 5956 7122 7928 9054 10287 11589 12818 14138

The blue bars indicate the demand of television in each year.

The red lines in the graph represent the growth rates.
Key factors driving the demand for colored TV’s

Factors along the Demand side:

Channel explosion.
Rising local language content.
Increase in disposable income.
World cup.
Growing nuclear families.
Increase in standard of living of people.
Consumers priority for owning television sets over other consumer
durables
Reduction in CTV prices in real terms.
Rise in credit facilities from banks and other financial institutions.
Increased Electrification

Factors along the Supply side:

Reduction in price of inputs used in production.

Improvement in technology.
Increase in the number of suppliers of CTV’s.
 Market Share- CTV Players

100
11 13 10 12 Sm a ll( Re g)
90
80 11 12 12
15 Sm a ll( Mu lti)
70 14
Market Share (%)

19 25 28 LG
60 14
50 SAMSUNG
10 16 15
40 13
11 ONIDA
30 18 11 10
7 6 5
20 BPL
10 22 19 21 20 VIL
0
2001-02 2002-03 2003-04( First 9 Jan'04+Feb'04
month)
Market share (Sep 2005)

* All figures in %

Samsung, 14.70
LG, 25.15 Onida, 12.44

Videocon
7.55

Others, 9.85
Philips
Sansui
Sony, 5.39 7.49
Hyundai, 0.76 6.01
Akai, 2.44
Haier, 2.68 Sharp, 2.13 Igo, 3.41

LG is a leader as a single brand

 CTV price trends

35000

30000

25000 14"
20"
20000
price

21"
15000
21" f
10000 29" f

5000

0
2002-03 2003-04 2004-05 2005-06 2006-07
14" 7000 6000 5000 4650 4160
20" 9300 7500 6700 6200 5540
21" 10100 8500 7800 6380 5710
21" f 15000 12000 9300 7800 6950
29" f 32000 25000 18000 15050 12750
year
Flat vs Cur ved share (2005)

* All figures in %

Flat vs Curved Flat vs Curved

Jan ~ Sep 2005 Sep 2005
Flat Flat
38.83% 48.59%

Curved
Curved 51.39%
61.17%

The contribution of fl at i s rapidly increasing because of:

Constant technology improvement leading to new form ats/ sizes

Ri sing di sposabl e incom e and propensi ty to spend
Declining prices
 Trends in the television segment
220

200 196.3
189.4 190.6
7.1
6.1 PJTV
11
180 7.2
170.5 169.9 8.5
PDP
19.9

160 33.7
153.8 LCD
150.6

142.6
141.4 CTV
139
140 134.6
131.9 172.2
164.1
158.8 157.4
151.3
147.3 144.5
120 137.5 139.6 140.5
130.9 133.4

100
'95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06
 Swot Analysis
Strengths Weaknesses

Strong brand name Losing market share to multinationals

Large CTV market share Growing discontent in the organization
Wide distribution network
Strong manufacturing base

Opportunities Threats
Huge market potential with low Competition from strong MNC players
penetration Fall in margins
Increasing rural markets
Growth of cable TV
 CTV is being perceived as a necessity with higher disposable
incomes being spent on lifestyle products.

 Shift in the consumers preference in favor of higher- end,

technologically superior branded products.

 Competitive strategies revolve around strong brand differentiation

and prices.

 Rural market is growing faster than the urban India. The urban
market is a replacement and up gradation market now.

 A positive trend in the plasma and LCD TVs segment is expected in

the near future.

 Color television sets (CTVs) in India is expected to grow at a rate of

12.7% percent this year (2006-07).