VIDEOCON : BRING THE

LEADER HOME
Course Code _ ECON 531 Academic Task _ 2
Faculty Name _ Dr. POOJA KANSRA Presentation Date _ MAY 2 , 2022

NAME REG NO ROLL NO

PAYAL 12101920 RQ2139B49
KOLUGURI SAINATH REDDY 12101928 RQ2139B50
SUPRIYA KUMARI 12101931 RQ2139B51
AYUSH KUMAR PANDEY 12101917 RQ2139B48
• Electronic goods market
• Other major player- Sony; and minor players – Konka and
National Panasonic
• Three dominating electronic products – colour TV, Washing
machines, and refrigerators
• It wants to strengthen its CTVs by largest CTV
manufacturer in the world.
 Growth of
Videocon
 The company has a well defined product line which basically improves its
growth rate in the economy.
 The Videocon has a market share of 40% in colour televisions with installed
capacity of 1.2 million sets per annum.
 The company also has better pricing strategy at PE ratio of 4.16 compared to
other player's which attracts the customer to purchase it's products.
 The company also took decision that it want to expand its product line by
strengthening it's hold on CTV’S
 which will make Videocon international the fifth largest CTV manufacturer in
the world.
 If we look into its financials of three years data it is clear that the company
did well growing year on year.
GROWTH OF VIDEOCON IN 1998-2000
•
 COMPETITORS IN
ELECTRONIC INDUSTRY
MAJOR PLAYERS MINOR PLAYERS
VIDEOCON KONKA
SAMSUNG NATIONAL
PANASONIC
PHILIPS
DAEWOO
MIRC
BPL

THE PRODUCTS THAT DOMINATES THE MARKET ARE COLOUR TELEVISION,

WASHING MACHINE AND REFRIGERATOR
PROFIT AFTER TAX OF VIDEOCON AND ITS
COMPETITORS(%)

40

35

30

25

YEAR
20 1998
1999
2000
15

10

0
VIDEOCON BPL MIRC OTHER
NET SALES OF VIDEOCON AND ITS COMPETITORS(%)

40

35

30

25

YEAR
20 1998
1999
2000
15

10

0
VIDEOCON BPL MIRC OTHER
PRICING STRATEGIES OF VIDEOCON

14" CTV at Rs 6000 a price unattained by other players.

Videocon pricing strategy seems clear from its price earning ratio of
4.16 compared to yet another major player BPL and MIRC electronics.

Videocon launch 29" CTV with internet connectivity and multimedia

combability at Rs 15000.
 THREATS-

Videocon is apprehensive of one of the new entrants Konka of China

Its has shown signs of using strategy like product differentiation.

Company is also planning to diversify in the white goods market of

South Asia, Vietnam and West Asia.

Global diversification can help Videocon for the lower prices in the
home market to fight ‘cheap’ konka products.
CONCLUSION