OBJECTIVES

OBJECTIVES

Analyze the Marketing strength of BPLCTV in terms of Product, Price, Place,

Promoting and Packaging

Identifying potential market for launching new product and increasing sales of
existing ones

Conduct dealers survey in Delhi to fine out how to increase sales

Find out the cause for BPL declining performance in 14 CTV

Elicit feed back on product performance

Determine relative quality perception of BPL brand

Establish decision-marking criteria.

RESEARCH
METHODOLOGY

RESEARCH METHODOLOGY
STAGE I
A list of the 65 authorized dealers in Delhi was taken from the Branch Sales office of
BPL (Ashok Bhavan, Nehru Place, New Delhi). Out of this 25 dealers were not
cooperative and were unwilling to answer the questionnaire or gave incomplete
questionnaire, which could not be incorporated in the analysis. Thus the actual sample
was 40 dealers. The technique used to collect information was both by personal and
telephonic interview in order to acquire feedback from the dealers.

STAGE II
To know the brand awareness, consumer perception about BPLs and their satisfaction
level, the consumer personal survey was undertaking which was based on non disguised
structure questionnaire of 100 consumers. Out of this 20 questionnaires were incomplete
and could not be incorporate in the analysis, the consumers were surveyed randomly from
different areas of Delhi

Limitation

Perceived sensitivity of information like sale and annual, thus rendering those
questionnaire incomplete an hence turnover led to refusal of answering of certain
questions by some dealers could not be incorporate in the analysis

Due to limited time available consumer survey could not be undertaken for intended 200
consumers and thus had to be limited to 100.

MEHODOLOGY
Information Regarding the organization marketing strategies has been obtained through
a)

Primary Source

b)

Secondary Source

Primary Source
Marking personal, public relation personal, showroom managers of the concerned
organization were approached to obtain information about the concern subject

Secondary Source

Internet

CII Library

Ph.D. Library

Articles from - Business Today, Business India, A&Ms, Business Worlds

Newspaper Articles from-Indian observers, Brand Equality, Economic Times

Brochures
Based on the information obtained from the above source concept were developed on
which analysis was made.
The rise of the Replacement Market has fueled growth, not just in the TV industry, but
also in other areas.

Production of consumer Electronics Products

(Qty. in Lakh No)
Item

2004

2005

2006

B & W TV

60

61

61

CTV

19

27

33

COMPANY PROFILE

COMPANY PROFILE
BRITISH PHYSICAL LABORATARIES LTD
BPL Limited is the Flagship Company of the 2600 Crores. BPL Group is Indias largest
consumer electronics conglomerate. The group has a long-standing strategic alliance with
Sanyo (Japan) for a variety of consumer durable. BPL Limited has a principal presence in
the manufacture and the sale of Color TV sets. The company also produces black and
white TV sets, alkaline batteries and gas tables
BPL Ltd. launched into business in 2004 with the manufactures of hermetically sealed
precision panel meters in Palakkad. Today BPL is a broadly diversified business
organization, active in most sectors of the economy. BPL is competing with the world
foremost companies, moving aggressively to capture foreign market and increase global
market share. In 1970, with technical collaboration with Siemens and ITT, BPL began
manufacturing professional grade relays and switches and later expanded into
manufacture of power line carrier communication equipment for the government of India.
In 1982, BPL group grew steadily in the field of medical instrumentation, communication
and power system largely due for a reputed in-house R&D facility and components
development center for in-house requirement. BPL witnessed a new era in 1982-83 with
groups entry into Consumer Electronics and with formal technical collaboration with
Sanyo Electric Company, Japan. Since then the growth has been phenomenal with sales
turnover nearing US$800 Million in 2005 to US$1000 in 2006. BPL is the clear leader in
the domestic market with about 27% market share in the CTV segment and also controls
about 60% market for the critical components including color picture tubes in Consumer
Electronics. BPL is also Indias leading exporter of color TVS with a contribution of
more than 60% of the domestic audio market and are also emerging as the fastest growing
consumer company with refrigerators and washing machine. BPL is concentrating in
eight product areas such as computers, communication, components, instrumentation
(industrial medical and measurement) office automation, consumer electronics, home
appliances and refrigeration.

To combat corroborative pressure, the company launched the latest models knight market
and went in for heavy advertising to maintain its leadership in the market for a quality
product company from its earlier image equipment company.
Sensing the consumer electronics industry is going to be fiercely, competitive in the years
to come and growth rate will show down, BPL is diversified itself into other industries
like power and cell phone networks. Both of this unrelated diversifications for the group,
and group resource are stretched to the limit as both the segment entail heavy investment.
BPL is the largest exporter of consumer electronics products to Japan, USA, UK and
Middle East. In India, BPL has a customer base of over 18 million people.
BPL adds value to its businesses by continues innovation in the creation of new brands
and concept, by being the first with the latest and most exciting technologies at the best
prices, by offering expert comprehensive service, by continually improving the efficiency
operation and by selecting the best people for its businesses. BPL has Customer Units, 21
Customer Interface Units and 28 manufacturing units in India. It has over 3000 dealers
and 300 exclusive outlets throughout the country . BPL shares a long lasting relationship
with its partners, Sanyo, Toshiba, Denon, Loewe, AT& T and France Telecom
BPL is committed to achieve a leadership position in all it business group through
utilization of the best and most appropriate technologies, applying the finest
manufacturing disciplines and most efficiently marketing high quality products and
service, to consistently give customers the best for their money.

OBTECTIVE OF THE COMPANY

To ensure customers confidence through product quality, efficient marketing and

effective service

To continually enhance Companys worth to its shareholders and investors through

sound investment and profitable operation.

To demonstrate a real concern for its employees and to constantly improve the quality
and value of their job and career advancement
8

To be a good corporate who contributes positively to its community by protecting the

environment and working for public welfare.

To respect the laws, rules and customers of the land and to ensure that the conduct of
all company activities will always be to the highest ethical standards.

To identify and determine suitable marketing strategic for boosting up the market
share of CTV, particularly for BPL Ltd

To make a detailed study of the CTV, in terms of its existing market size and future
market potential.

SUMMARY ABOUT THE COMPANY

The present trend of corporate adaptation (take-over) and marriages (mergers) seems to
be sort sighted and would only handle the immediate threats of competitions i.e. intracountry. In a global perspective, inter country and international competitiveness would be
developed

only

through

of

inner

strength

that

comes

through

successful

commercialization of R&D effort and building up of the market share

BPL the homegrown consumer electronics leader has grown with reviving its existing
marketing strategy from time. It is one of the Indian Companies, which has been able to
hold their own against the TNC onslaught. The explanation of why BPL continues to lead
the thoughtful Indian customer. But it is a fact that countrys Top Color Television
manufacturer have seen their collective market share shrink.
The present is an effort to formulate strategy to boost up the market share for CTVs for
BPL Ltd. Therefore is a greater awareness in our country now, however, in order to face
the challenge ahead it become absolutely necessary to understand the implication of
building market share.
In the fiercely competitive world of today information and inherent knowledge play a key
part in determination the competitive edge over others. Hence, it is important that the
ambitious Organization should keep their information as updated as possible. The present
endeavor is a modest attempt in this regard.
9

CURRENT MARKETING PLAN OF BPL LTD

The group has always been as an electronic engineering group, unlike many of its
competitors. Today we make everything from the cabinet to the electronic tuner itself and
buy the picture tubes from Indian supplier. This in itself is seen as a transition of BPL
from an engineering group to more diversified group dealing right from achieved with
tremendous success. The BPL group is lot shy, introverted, but excited about the quality
of its products. It is not suppressing plan that over the past years, the group has quietly set
in motion a wide ranging, strategic plan to established itself as the undisputed leader a
stunning array of new products washing machines, vacuum cleaners, refrigerators,
microwaves, oven. In audio, it has widened its range dramatically. Soon to come, gas
stoves with built in lighters, mixer-grinders, and mineral water machine. In just 10 years,
sales have zoomed from Rs. 19 crores to Rs.100 crores. BPL in the field of color TVs
has left behind old time rivals Videocon & ONIDA black. In audio segment the sales of
BPL is second only to PHILIPS who is the market leader. In VCRs and VCPs, BPL
SANYO was the market leader with a 21.4percent share of Indian made machines. In
B&W TVs, BPL is fifth, but leads in 20-inch sets, the only segments it was present in till
last year. In color TV component, the group has 65 percent of the market for electronics
tunes, fly back transformers and deflection yokes, supplying too many of its competitors.
In medical electronic, it has 80 percent of the electronic tunes, fly back transformers and
deflection yokes, supplying to a many of its competitors. In medical electronics, it has 80
percent of the electrocardiogram market and 50-60 percent of the ICU monitors market.
In the Epbaxs, the group has the largest user base in the country. Some conservative
which now to a large extent has been able shed its image to largely because of the
involvement of BIG B in the advertisement which in itself was seen as mega coup or
event
Smoother the competition with range it keeps both the consumer and dealer happy. It uses
the top-of-the-line product to gain attention. The rub-off on the range down the line will
work wonders. Finally, get BPL product to occupy every corner of the target household.
If this means sometimes getting into product categories, which arent profitability
immediately, so be it. Its a price worth paying. BPL has also running dealer promotion
scheme but not to the extent their competitors indulge instead by believe more on
10

advertising due to the fact that if the promotional spend crores and that means they are
cutting their brand in the long run. So for, dealers they look at high margins trouble free
performance so the customer wont hassle him and a constant flow of new product on all
factors BPL has got its act together. BPLs range strategy work on two levels, at the first
one, the group is pushing into every consumer durable category in an attempt to crate anall encompassing umbrella brand munch like those of leading Japanese companies. It is
selecting dealer showrooms at price location across the country and turning them into
BPL Galleries that stock and display only and all BPL products. The main objective of
the BPL Galleries is to show the public the width of BPLs product range, build corporate
image and sales. The second level of BPLs range strategy is most obvious in the Rs1,000
crore audio market. The one with Rs 1500-3000 stereo portable segment (popularly
known as two-in-ones) will become the largest segment volume wise overtaking mono
portable. BPL is trying to compete with PHILIPS its nearest competitor with range and
line-filling product as it not only keeps the consumer a choice and the dealer happy. In
the CDs market BPL plans to challenge PHILIPS by being hi-tech, trendy and the
medium of future. They introduced models right from 50 watts to 1000 watts in the
market, by calling the BPL CD range as

DIGITAL GENERATION
The BPL group is slowly moving away from its core areas of entertainment electronics
and consumer durable. But not all its diversification has been successful. It was this same
tenacity that helped the BPL group floats a high-technology company in a very short
time. BPL Mobile, one of the two cellular phone operators in the four Indian metro-Modi
with Telstra, Max with Hutchinson, etc have tagged along overseas partners in their
new ventures. But BPL Mobile and simultaneous diversifications into the power skills of
its the BPL groups attempt to move away from the highly competitive entertainment
electronics sector, its mainstay all-long. They have entered power sector because of its
high entry barriers for smaller players. Since telecom and power are high turnover areas
our dependence on entertainment electronic will reduce but it very gradual. The various
companies are in six main areas of operation entertainment electronics, appliance,
telecom, power, electronics and TV components and international operation. Form a

11

turnover of Rs. 2,282 crore in 1995-96 the BPL Group had targeted sales of Rs.5,000
crore at the end of the decade which it successfully achieved.

12

INDUSTRY PROFILE

13

COLOR TV INDUSTRY PROFILE

The industry analysis or industry, which grows phenomenally in a short period of about
10 years, does affect, the cycle and the culture of the society. All of a sudden, the
emergence of a wide variety in the hardware and the software is sure to influence viewing
thinking and living in the society and that is what has happened. Today, the TV has
become a device, which has changed generation, both young and old.
TV perhaps is a most powerful media today in India. The socio-economic impact of this
media in a country like India is tremendous. Television started to pro life-rate, Indian
homes in the last 2-decade. This was largely due to the increase in the disposable income
of the middle-class supported by expanding transmission to remote areas. The extensive
use of the media as a powerful toll for entertainment, information and education by other
channels has added impact to this growth.
Since the launch of CTVs in India during 1982 with Asia games, throughout the 80s the
Indian TV market is found to be dominated by handful of payers like Weston, Crown
bush and the other government owned companies
The CTV industry for the fast expansion of TV industry has been the channel
expansion from 2 to 40 in less than 3 years. The popularity of the channels boosted the
TV industry.
The economic revival in the early years of this decade gave the people money to buy, the
Idiot Box. The sudden change in the demand for the B^W by weaker section of the
society brought in new players in the industry. The big 3 companies in the emerging
market were

BPL

Videocon

ONIDA

14

The 3 have been clearing from time the leadership of the market. These 3 soon contracted
more than 60% of the TV market in the country. During this period, other brand like
Philips and Optonica also thrived in the market shares ranging in the single digit
In fact, the on set of the 90s- brought about such frenzied activity that there was no clear
picture of who is the leader in India. The 2 man rivals Videocon an ONIDA, held
positions, which contrasted sharply with BPLs. Videocon was on the low price, value for
money Spaot and ONIDA was selling status symbols in the following years, on
parameters exclusively, BPL stole ONIDAs long premium mantle.
There was perception that Videocon is known mainly for its low price. In order to dispel
it, Videocon launched its top of use 21 inch Bazooka as expensive product priced at over
is Rs.22000
Purchase of the CTVs recorded an expansion of over 29.5% 1.35 million in 2002-03 to
1.75 mm set in 2003-04. The growth decelerated in 2004-05 with purchases estimated at
around 1.9 mm sets only. This would still yield a growth rate of 9%
The competition has been holing up. Exchange Schemes, free gifts, price off and other
incentives are some of the promotional tools deployed by the produces, which certainly
have made the market vibrant. A major factor contributing to growth was the availability
of consumer financing scheme
And now THE NEW SCENARIO with a new market profile: The entrenched position of
the Indian market leaders in CTVs Videocon, BPL and ONIDA has been challenged the
MNCs such as

Akai

Panasonic

Sony

Samsung

Sony and Sharp

15

INDUSTRY AND MARKET OVERVIEW

CONSUMER DURABLE
The growth in consumer durable in India represents an important fact its transition to
modernity. Economic growth and the gradual rise in disposable income, changes in
lifestyle caused by growing urbanization, benefits of technology and the demand for new
and better product have been the primary drivers of growth for the durable industry in
India

MARKET CHARACATERISTICS
Demand Determinants
The total demand for any category in durable comes from
1. New users buying for the first time
2. Existing owners buying a second unit of the same from 3 source
3. Replacement by trading in/scrapping and buying a better, new product
In India, the major component of growth has been from new users buying for the first
time. During most of the nineties, there was a lower sale of white goods as compared to
Color Television. However, Indian households tend to prolong the life of Application and
hence the rate of replacement demand is still low in comparison with developed countries

Affordable Product
Affordable products with basic features account for a major share of the market. For
instance in Refrigerators, Direct Cool model represent over 75% and in Washing
Machine, Semi-automatic models over 80% of total market. In contrast, Frost free and
fully automatic categories account for the bulk of the market developed countries.

16

 Affordable Product
Affordable product with basic feature, account for a major share of the market. For
instance in Refrigerators, Direct Cool models represent over 75% and in Washing
Machine, Semi-automatic models over 80% of total market. In contrast, Frost Free and
fully automatic categories account for the bulk of the market in develop countries

Consumer Finance

Consumer fiance has become a major demand for consumer durable as it reduces the
effective income level at which acquiring a consumer durable become possible. The
recent reduction in interest rates an the plenthora of Zero percent offers have led to a
significant increase in the purchases, using consumer finance option

Price Trends

Demand for consumer durable is sensitive to prices. There had been a consistent drop in
retail price over the years of most categories like Color Television, Refrigerators and
Washing Machines, brought about by reduction in excise and customs duty and increased
competition. However in the last year, the price drop has evened out due to increase in
Sales tax in several states, as result of tax rationalization efforts.

Technology

The time interval between introduction of new technology in international and Indian
market has been narrowing. The trend in Television is towards digitalization and
increased use of embedded software for delivering easier customer interfaces and better
features. Television displays are moving from conventional pictures tubes to new
technologies like Flat screen, LCD and Plasma.

17

SWOT ANALYSIS OF THE C.T.V INDUSTRY

STRENGTHS

90% Manufacturing Bases BPL Ltd. has acquired four CTV manufacturing facilities
in the country on lease basis. This takes companys CTV manufacturing capacity 2
million units existing 1.2 million

Units are located in:

Bangalore
Chennai
Delhi
Palakkad
BPL also acquired Uptron facility

Brand Awareness

BPL never lost the mind game, according to A&M annual survey BPL IS Indias first
most admired consumer durable firm. Trisys and independent research agency has
valued the BPL brand at Rs 1,102 crore

Maximum dealers networking in India almost 400 authorized dealers, which give it
price control & maximum reach. Collaboration with worlds best manufactures which
upgrade it technology when market demand

65% of Indias CTV Industry depends on BPL for equipment

Second Largest Exporter of CTV after Sony after but still commands 14 & 17 CTV
Exports.

18

S.NO

COMPANY

EXPORT SHARE

CTV Sets

Sony

34.5%

55292

BPL

23.16%

37132

Videocon

19.52%

31277

Dixon

16.34%

26171

Note: BPL WAS No 1 last at 58% export share

BPL is adorned with internationally acclaimed quality standard

The BPL group has reported whopping 32% rise in volume in CTV for the period
April 2004 to Dec. 2006 according to latest ORG Report

With this BPL has maintained its No.1 Position with an over all market share of
23.2% last year

Despite the domestic market getting fragmented due to stiff competition. In four out
of five segment of CTV (20, 21, 29) BPL is No.1

The vigorous growth of the satellite TV and the choice own available to the consumer
is a point of strength for the industry

India can become an excellent base for consumer electronics manufacture because the
liberal policies of the government have attracted leading multinational from Japan,
Korea etc, to come and set up business in India either on 100% equity basis or joint
venture, Government is also considering further liberalization and the question of
permitting private TV and radio operators to set up their own station

One such a decision is taken will be greater choice for the Indian consumer and
thereby greater opportunity for marketing of consumer electronics products

Developed distribution infrastructure

19

WEAKNESSES

Considered as premium brand so middle class people think it is unaffordable

Non Existence of BPL in CTV exports in following categories:

20 CTV
21 CTV
25 CTV
29 CTV

Although BPL protects its No. 1 Position in Domestic CTV market but is regularly
losing market share

Dec2004

Dec 2005

Dec 2006

22%

20.2%

19.7%

BPL slipped to No.2

Our market penetration is still very low, whereas China with comparable levels of

14 CTV

income boasts 18 million Color TV sets alone, we are hardly at the level of 4 million

Narrow product range, low sustenance capability

High import contest

Small domestic market hence long productions capacities lying under utilized

Low qualities resulting in exports prices being non competitive

Additional fiance not available for WC from Indias Banks

20

OPPORTUNITIES

Potential market for CTV sets in India is vast as CTV penetration in the country is
one of the lowest, 43 person per 100 population possess a TV set

66% of CTV revenue seen coming from rural areas, BPL can upon this

Indias rapidly growing middle class segment

Growing replacement market

Multiple TV homes increasing

TV Veopar Journal states, greater export potential for CTV in Singapore (currently
81% export share), followed by UAE (18%), China & Malaysia

The increasing presence of multinational in India for manufacturing be it Samsung

Goldster, Panasonic, Sony, provided an opportunity for upgrading the quality of
manufacture in the country

Growing market, increasing export opportunities

THREATS

Kabir Mulchandani picked up AIWA over Akai since AIWA is producing kits 10% to
15% lower prices than Akai, Hence armed up for low-price in CTV 14 Rs. 5950, 20
Rs11400

China largest TV manufacture KONKA ready to host the red flag over Indias CTV
Market, KONKA entered the CTV arena last year

Kabir Mulchandani s marketing Sales & Distribution tie up with HHEA (Hitachi
Home Electronics Asia) to initially market three model 21, 29, & 33

Patent right on On Screen Display and Menu Display a major road block for BPL
exports to Germany, USA & Italy
21

Existing MNCs Samsung, AIWA, LG and Philips continuously raising their share
while BPL despite of increasing sales losing its market share

The Indian domestic manufacturing industry is facing the problem of the brand names
from abroad and this is an area anxiety.

Alliances Lead Players

Company

Share

Videocon

21

Toshiba, Japan

22

BPL

22

Sanyo, Japan
ONIDA

14

JVC Japan
Philips

10

Baron International

10

Akai, Japan
Panasonic

Samsung

Sony

* Leading Brand
Bazooka ONIDA, Videocon, BPL, Turbo, Tough, Panasonic, Samsung, Akai, Philips,
Sony, Salora, Golden Eye, Philivision, Dyanora, Sharp, Bush, Thomson Budgetline

22

MARKETING
STRATEGIES & MIX

23

MARKETING STRATEGIES
Broadly it can be started that BPL Ltd. Stand by closely reviewing its existing marketing
strategies
1. The first and the foremost information is that CTVs more than 90% sales are
controlled by the 21 inch CTV taking into consideration all categories of CTV. This
means company should focus mainly on the production of 21 inch CTV
2. One of the most important is that customers look for quality with reasonable price
while purchasing a CTV and slight importance is given to the companys reputation
whether or not the company is offering freebies and gifts.
3. Dealers, retailers, sub-dealers are also vital to be due to be given due importance. It is
also necessary to understand the dealers, retailers, and sub-dealers because they are
one of the important people who can push the sales of the company. It was found that
dealers mainly want that the company should give them credit facilities and discount.
4.

BPL is the overall winner in its category. The rivals of the BPL are LG and
Samsung which are coming up like anything

5. As dealers are also the controllers of the sales to some extent. One of the important
information is the most the dealers ask the customers to wait and assure him the
delivery if the particular brand is not available. Few of them advice the customers for
other brand. The company should improve their physical distribution system and
assure the availability of different models in the showroom.
6. Most interesting information is that almost all the brand is having best selling models
supported with different reason. The customer relates BPL with quality and brand
name, which is good indication. But the company should strengthen their R&D
efforts to develop models having USP (Unique Selling Proposition)
7. On the basic of the information of the retailers, it can be concludes that promptness
towards the complaints is also very important, many of the global players like
Thomson, LG, Samsung have already build up the impression in the mind of the
24

customers that very prompt towards the complaints. It should be done in the mind that
this aspect be should not be overlooked.
8. The name of the TV set should be such that it appeals the customers that it has been
specially designed for them.
9. One important aspect of hooking local Indian customers is by redesigning the TV sets
to appeal to local needs i.e. developing a unit would have on screen displays in the
vernacular languages of Hindi, Tamil and Bengali. The logic is that the Indian
customers who are unfamiliar with English would still be able to use the TV without
feeling intimidated.
10. It was found that still Indian customers are price sensitive but simultaneously they are
willing to pay more if he sees value i.e. not necessarily true that cheap products do
well.
11. Information reveals that Korean companies run their dealerships differently. Market
studies revealed that transparency between companies and dealers or dealers and
customers was low and companies had no time to sort this issue. For Example, all
companies come out with new schemes for dealers every month for special
promotions. Special margins are made available on air conditioners and refrigerators
in the winter. But Videocon and BPL, which have large portfolio or products,
operated as many as half-a-dozen schemes at any given time. For dealers who have
to keep track of 150 different models, additional work was not easily manageable.
There are examples of dealers who have not reconciled these accounts for as long as
two years. Others have just lost money.
So, it is suggested that SAP network should be used to keep track of all dealers,
traders and ensure that dealers accounts are reconciled every quarter.
12. It was found that mostly every CTV player knew more or less what customers are
looking for and they readily incorporate those features in their products. Example,
when Videocon found that Indian sought big audio output in TVs it launched the
successful Bazooka range. Philips launched aggressively priced 21-inch model with
200-Watts output especially for India. But the companies could be successful in such
25

fiercely competitive market when they offer unique features that could justify the
additional cost and more important be of real use the consumers. Examples, to stand
out Koreans had gone for such strategy and were successful LGs Golden Eye TV in
an additional to all the features that other premiums products boast off- Graphic
Equalizers Channel Memory System, Turbo Search adjust the TV picture
automatically to the light conditions in the room.
13. BPL and Videocon pride themselves on being available at the highest number of
outlets in market. Sometimes that means two (or more) dealers in the same area, a
factor, which can lead to price wars at the dealers, end and creates doubts about a
brand pricing policy. This is one of the most important information and the company
should take certain actions to check this problem.

26

MARKETING MIX THE 5PS

1. PRODUCT ANALYSIS CTVS
Color television account for 37% of all TV sets sold in India, 21 CTV is the largest
selling product in CTVs. At present the market is in a growth stage and currently there is
a boom in the market. BPL is producing expected products which have set of attributes
and conditions that buyers normally expect and agree to, when they purchase a product.
In this category, BPL offers features such as 100 programs (channels), Cable readiness,
Bass expander, child locking and host of others. But of late, it has started making
augmented products that meets the customers desires beyond their expectations. The up
gradation of product quality is through digitalization and accordingly the company is
coming out with a range of high end digital products like digital camera, digital home
theater systems and digital versatile disc player. In the television industry, it is the
product, which drives the brand.

BPL is launching new products to widen its product

mix. BPL is lengthening its product line of CTVs by adding more items within the lines
present range.
BPL has also introduced the concept of line featuring by promoting low-end promotional
models to serve as traffic builders to attract new buyers. It plans to concentrate on
producing higher margin items only. As has been the case worldwide, the 21 version has
been gaining ground and this year, in fact has established it with maximum sales among
all sizes.
The other big factor in the 21 segment is the gradual shift to the F&FST (full and flat
square tube), which allows for better viewing. India is expected to go the way of the rest
of the world, which prefers F&FST. MNCs have been promoting F&FST in a big way
because the margins are higher there. Even as more consumers are willing to write out
big cheques for feature packed TV sets, enormous potential is crystallizing below. In the
market called India, the best and the obsolete products both can sell side by side in
substantial numbers.

27

Model
14 Portable
KSR
KDR
KBR
KTE
20 CTV
EBR
LVR
LXR
LCR
21 Flat & Full Square Tube
FQR
FXR
FHR
FTR
FWR
FYR
25 Large Screen
BQR
BXR
BZR
29 Large Screen
NPR
NQR

2. PRICING
The demand for CTV is sensitive to its pricing. With a little reduction in prices the
demand shoots up rapidly. The major barrier to penetration and market expansion has
been the high price in relation to purchasing power of an average Indian. In order to price
open and expand the market, manufactures are bout to adopt strategies to lower prices.
BPL has been affected by price cuts of its competitors with its market share falling to
28

22% at present. Within the new price paradigm a brand such BPL would continue to
command a premium over other brands, due to a higher perceived quality and the brand
values it enjoy. BPL went for quite a few promotional schemes last year. Regularly
dropping prices create dissatisfaction among the consumers who have brought the same
CTV Model earlier.
CTVs value and price are currently perceived in 30/70 ratios, which means that Indian
consumers still go for the lower version, or at least a majority of them. BPL has prices its
products in such a way that it can cater to all category of buyers. The company has been
very aggressive in its pricing which has led a sales strategy of receiving 100% advance
payment from in its dealers and giving its dealers and giving its dealers a margin of about
10% on the MRP. Though the effective margin received by the dealers is effectively the
lowest for BPL CTVs, yet it given them higher turnover, which ultimately leads to
higher, profits. Recently three successful pricing strategies which received over
whelming consumer response were:

Financing at 0% rate of interest

No profits No loss sale scheme for its best dealers in Delhi

Attractive price reduction due to in-house development of some components

CTV industry is witnessing a general trend lower price. New CTV sets come cheap,
thanks to exchange meals and easy finance offered by leasing CTV manufactures. Pricing
of CTVs is done more value perceived by the and less on cost plus markup basis
BPL is trying to reduce costs as a result of concentration effort by the companys
designers, engineers and vendors to reduce them. It is using optional features pricing,
special event pricing and low financing as forms as forms of promotional pricing. The
BPL brand commands a premium position in consumer durables. But, if it has to climb up
the volume, leader, it has to step down the price-ladder since it is the middle class
segments that have the potential for growth.

29

Size

Price (Rs)

14

700-10000

20

10000-12000

21

25

29

13000-20000
20000-30000
35000-45000

3. PLACE
Needles to say that competitive scenario in the CTV Market intense. Infect the industry is
gradually becoming over crowed and competition is cut-throat
So in present marketing situation BPL to become CTV leader has three marketing
strategies (3M) available to deals upon

I-M

Marketing in Traditional Area (Urban But with

new marketing perspective.

II-M

Marketing in Rural Area.

III-M

Marketing in Overseas (Exports)

30

Although earlier, BPL had placed itself as marketing leader in I-M & III-M, but recently
it has lost its leadership in export.
Also it is striving to maintain its supreme position in urban market, since its market share
has reduced to 19.7% in December 2006 as compared to 22% in December 2005.

I-M MARKETING IN URBAN

BPL

LG

Videocon

Sony

T-Series

ONIDA

Thompson

Sharp

Samsung

Panasonic

Philips

Akai

Aiwa

Daewoo

In current situation around 15 CTV manufacturers are fighting cutthroat competition in

urban market. As out of 15-listed CTV manufacturer 74% (11) are MNCs with a total
54.7% (Dec06) market coverage.
And in initial phase of their marketing strategies (Top to bottom) they always prefer to
cater in large density cities/towns.

Thus making the urban market congested and

operating at thin margins, by working at large volumes and low price.

Even BPL is striving to maintain its supreme position since despite of rise in sales
volumes to 63,800 in 2006 from 55,400 CTV sets in 2005.
Its market share reduced to 19.7% in Dec06 from 22% in Dec05.

II-M MARKETING IN RURAL WHY GO RURAL?

31

 Urban Market is over crowded with domestic as well as MNC players and saturated
urban demand made the profit margin thin.
60% CTV revenues seen coming from rural areas in 2006 which is almost 30% at
present (FICCI)
Increased rural income resulted in growing consumerism
Pioneer is the first & maximum beneficiary
You do otherwise some other will do, as Philips & LG started to look upon Rural
Segment
Analysis: Over the past twenty years there has been a great increase in television viewer
ship in rural areas as compared to urban areas.

III-M MARKETING IN OVERSEAS (EXPORTS)

Worldwide CTV Demand over the years
Analysis: Huge potential for BPLs, CTV Export

32

THE PARADIGM SHIFT

The Transition of TV viewer ship from urban to rural, which makes it evident that rural
percentage, has suppressed the urban. Hence hey are the better prospects to target.
It is evident from the above pie charts pie charts the relative importance of the rural
market for CTV manufactures (BPL) is raising.
Geographical distribution of T.V. viewer ship in urban and rural India.
Analysis:
TV viewer ship is high in North, West & South India Rural areas so they are better
prospects for the sale of CTV.

4. PROMOTION
The beginning of 2006 did not present an exciting picture of CTV manufacture, with poor
counter sales and the economy witnessing a slow down in many key segments. Thus
manufacturers had to stimulate demand and wake up latent desires. With more than 15
brands competing in the same market place, and with very little differential between one
brand and the other. Companies resorted to various tactics to attract the attention of the
consumers.
Free gifts, attractive exchange offers for old TVs sets, money back offers and zero
percent finance schemes have become handy tactics to push up sales with each company
outdoing the other in giving free gifts and discounts.
The market registered a dramatic increase in size last year; BPL has also introduced some
exciting offers to attract the customers, like:
Real Discounts
Exchange offers
Installment schemes
33

The increasing competition in color television industry has forced the marketers to go for
innovative promotion schemes. The total amount to be spend on advertising and
promotion by BPL in Rs. 120 crore this year, it spend Rs. 110 crore in 2005.
BPL relies more on consumer pull type of promotional strategy. The effectiveness i.e.,
balances of push Vs pull tends to vary across regions in India. In consumer electronics
industry, the north and west are seen to respond more to push and east and south are
comparatively brand loyal. As competition heightens, companies are being compelled to
continually widen their product range. Their investment in tools, used to make dies and
kits of CTVs, are rising, BPL launched four to five models each year. They have five
tools and each tool costs Rs 5 crore to set up. The brand building activity has become
important for all the companies and this basically to keep them selves updated with
consumers perception of a particular brand.
BPL has around 160 exclusive showrooms at prime locations across the country called
BPL galleries hat stock and display only BPL products. The main objective of BPL
galleries is to show the public the width of BPLs product range, build corporate image
and sales.
BPL has announced end of its multi-crore association with Amitabh Bachcan in 1999
since his popularity is on a down swing in TV commercials and media campaigns,
especially in metros and urban centers. Currently BPL is using Amitabh Bachcan only for
its rural marketing campaigns. BPL will also exit from niche programs like BPL, Oye, the
popular Hindi film song countdown show on Channel V de to the fact that it has been
unable to qualitatively differentiate from competition and retain edge in this genre of
programming. It is trying to build an emotional bond with consumers. It moved to
establish a bond with the younger generation the key to future market lay in typing the
brand in inextricably with entertainment. The commercial inspired by the blockbuster
movie, Home Alone evoked sympathies (thanks to the kid) and warmed its way inside
every familys heart BPL is projecting itself as a company many advertising
entertainment products.
BPL has decided to capitalize on Indias near-religious fever for the game and get into
cricket-related sponsorship in a big way in the Cricket World Cup this year. BPL has also
34

launched its Player of the Wheel program for international cricketers on which it is
spending Rs 2.56 crore. The last cricket world cup in February 1996 saw TV sales surge
in India. With the increased coverage of cricket on TV, the popularity of the game is
expected to grow even further in the country.

Competitors
Samsung has announced that it would significantly increase its advertisement and
promotion spending and has focus on new promotions during the Cricket World Cup and
during Diwali. Also LG electronics was declared the official supplier of consumer
electronics and home appliance products for the 1999 cricket world cup in England with a
sponsorship amount of $15 million. Philips is also focusing on brand building riding on
the back of the youthful image tem and offering the latest technology products at
competitive prices. Akai is offering various exchange schemes to boost its sales. In last 2
years it had come out with more than 11 such schemes.

5. PACKAGING
Undoubtedly, BPL is considered as top brand and is positioning is basically based on
following categories:
Attractive Looks
World Class Products
Attractive Advertisement
Analysis:
BPL is declining in its positioning strategies, where as LG is regularly gaining growth.

35

FINDINGS
&
CONCLUSIONS

36

FINDINGS & CONCLUSIONS

PRODUCT CTV
BPL the market leader in CTV with 19.2% Market Share in Dec 99 but erosion in
market share from 22% Dec 98.
In screen size BPL enjoys No. 1 in 20, 21, 25 & 29 but slipped in No. 2 in 14
BPL is major exporter of CTV after Sony (T.V. Veopar Journal)
BPL mainly exports 14 & 17 CVT but absolute non-existence in 20, 21, 25 & 29

PRICE
BPL adopted and currently working on skimming pricing strategy in CTVs. Most of the
middle class segments considered it A brand suitable for upper class segment.

PLACE
Commands leading position in urban sector but no serious efforts are made to cash upon
untapped huge potential demand in Rural Sector, especially demand for Small Size CTV.

PROMOTION
BPL advertisement expenditure and brand association largely executed on CTVs.

Dealers Survey
Most of BPLs authorized dealers keep other competitive brands (LG, Philips, Aiwa etc),
which hamper BPL sales.
South Delhi and Central and East Delhi performing well as compare to North and West
Delhi.
60%-authorized dealers are not satisfied with current inventory level, mostly from North
West Delhi.
37

If dealers margin in increased sales volume will increased to 10% or more

Dealers are more susceptive to foreign trip as reward for performance credit or
commission.

POSITIONING
Mind share as well as heart share of BPL, CTV is very high as compared to other
products.
Large chunk of people stimulated to purchase BPL product by Advertisement and
discount schemes.
Most demanded feature
When switch over from more channel to another sound should be same
Colored plastic cabinet of CTV
100 or more programs
Child lock
Hi-fi surround system
On the basis of the study it can be stated hat it is the right time for the CTV makers to
battle it out for the viewers choice. If you are in the CTV industry watch out, its going
to be full-fledged war in the years to come with dire consequences for some.
Information provided by the respondents reveals that after seven consecutive years of
phenomenal growth the growth in the CTV market this year could fall.
The industry has grown too fast, much faster than most other durables and for too long,
and the factor that made it possible is running out of steam. Post 1992 a host of factors
impacting T.V. demand were unleashed, including the proliferation of satellite channels,
entry of the lots of global manufacture and brands and a fall in CTV prices. But the
impact of these factors is now weakening. The companies and dealers would be forced to
38

dump at exorbitant costs to themselves and it would mark the beginning of the shakeout
in the fiercely competitive industry with some 15 major brands.
The companies which carry momentum into the current year are such as LG and
Samsung those who are on revival mode from low base volumes such as Panasonic is
likely to increase their absolute volumes. If Videocon, which has been in deep slumber,
wakes up, its still has enough clout to increase its volumes. The message is quite clear.
All those who wage war will succeed those who stand on the sidelines will fall.

39

FINDINGS I
DEALERS SURVEY IN DELHI
Ref. Q. 1: Average CTVs sold per dealer in Dec. 06.
Product Territory

CTV

SD

35

WD

15

C&E

36

WD

20

Total

106

Findings:
SD & C & E Delhi evolved as major in BPL sales volume in Dec. 06

Ref. Q. 2: What was the break up of unit sold (Av. Sale per dealer)?
40

Model Size Territory

14

20

21

25

29

South Delhi

13

10

North Delhi

Central & East

10

14

West Delhi

10

Total

24

35

34

22.6%

33%

32%

8.4%

4%

Percentage

The break up of unit sold (average sale per dealer)

Findings:
65% market share of BPL CTV sale is captured by 20 & 21 CTV.

Ref. Q. 3: Which other brand do you keep in your show room?

Findings:
Since most of BPL dealers also keep other competition brands in their show room, which
gives consumers, an option to choose other brands hence hampered BPL sales.

Ref. Q. 4: What do you think about the margin given by the company?

41

Capacity Territory

Very good

Average

Low

SD

ND

C&E

WD

Total

10

24

Percentage

15

25

60

Findings:
60% Dealers are not satisfied with margin given by BPL in comparison to competitors.
And if margin is increased, most dealers confirm to increase 10% or more sales of BPL
products.

Ref. Q. 5: Do you think company should force all its dealers to sell its products at
fixed price?
Findings:
Theres negligible controversy (7%) among BPL dealers in terms of Price Off given by
the co-company.
So BPL should not force its dealers to sell its products at fixed price.

Ref. Q. 6: Are you satisfied with the current inventory level?

Capacity territory
SD

42

ND

C&E

WD

Total

18

12

60%

40%

Percentage

Findings:
60% dealers are satisfied with current inventory level.
From non satisfied dealers 75% belong to ND & WD and they demand of more frequent
supply.

Ref. Q. 6: Are you satisfied with the current inventory level?

Findings:
60% of the dealers are unsatisfied with the current inventory level.
Out of this 60% of unsatisfied dealers 41.7% are from North Delhi and 33.3% are from
West Delhi.

43

Ref. Q. 7: According to you who of the following factors will result in increase in sale
of BPL products from your counter?

Factor

Increase

Training

Faster

More

Better

Better

Territory

margin

your sales

(order to

frequent

after sales

adv. &

though

person of

delivery)

contract

service

publicity

uniform

BPL

process

by

pricing

products

company
sale
person

SD

--

--

--

ND

--

--

--

--

C&E

--

--

--

WD

--

--

--

--

Total

--

--

16

23.3%

--

--

6.7%

16.7%

53.3%

Percentage
Findings:

Mostly dealers (53.3%) voted for advertising & publicity as best factors for increase in
sale of BPL products.
Ref. Q. 8: BPL reward system for dealers is good enough to motivate them.
Findings:
Those 13% who are not satisfied with reward of BPL, most of them demanding for
foreign trips related to any event like cricket match, tennis match, etc.

44

FINDINGS II
CONSUMER SURVEY IN DELHI
Ref. Q. 1: According to you which are the top two brands in following consumer
durables?
CTV
Sony

68

BPL

62

Videocon

18

Akai

LG

Samsung

12

Findings:
Mind Share (i.e., name the first company that comes to mind)
IN CTV, Sony and BPL is the two top of the mind brands.
Heart Share (i.e., Name of the company from which you would prefer to buy product)
IN CTV, 39% responded for BPL

45

Ref. Q. 2: Which of the following stimulus motivate you to purchase consumer

durable products?

Category

Discount

Exchange offer

Advertisement

Response

29

43

Percentage

36.2%

10%

53.8%

Findings:
Very few people (10%) are stimulated by exchange offers, since they have purchased
CTV, W/M or Refs few years ago or they are the first time purchaser of these products.
More emphasis should be given to attract prospects on advertisements and discount

Ref. Q. 3: Previous purchase decision of BPL products was influenced by

Category

Dealers

Past

Neighbors

Wife

Childrens

Warranty

advice

Experience

Advice

pursuance

Pursuance

Response

18

20

25

Percentage

23

25

10

30

Findings:
Only 23% consumers confirmed that they were motivated by dealers.
Now, if dealers advice and past experience are kept apart, rest 77% consumers can be
directly persuaded by BPL through increased advertisement expenditure and warranty
period.
Ref. Q. 4: Satisfaction level of consumer.
46

Fully satisfied

Partially

Unsatisfied

satisfied
After

sales

Strongly
unsatisfied

7 (8.8%)

23 (28.8%)

49 (61.2%)

1 (1.2%)

Quality

58 (72.5%)

22 (27.5%)

Life of products

59 (73.8%)

12 (15%)

9 (11.2%)

35 (43.8%)

39 (48.8%)

6 (7.4%)

73 (91.2%)

7 (8.8%)

service
percentage

percentage
Value

for

money
percentage
Features
Findings:
Mostly, 62.4% consumers are unsatisfied with BPLs after sales services.
100% consumers are satisfied with quality of BPLs products (fully and partially).
88.8% are satisfied with life of BPLs products.
92.6 consider it as value for money brand.
10% consumer are satisfied with BPLs products features (fully and partially)

Ref. Q. 5: Problems Faced with BPL products.

Findings:
Around 60% of consumes are unsatisfied with BPLs after sales services.

CONCLUSIONS
47

Potential Market
Small Size CTV (14) particularly in rural market.

How to increase sales (found out by dealers survey)

Emphasize on 20 & 21 (TV since they are the most selling sizes)

How to increase sales (found out by consumes survey)

In order to increase sales of CTVs emphasis should be given on heavy advertisement
expenditure and discount offer. Also dependable warranty should be given to the
consumer for purchased product. After sales service should be given more emphasis and
improved.

Causes for declining performance of BPL in:

14: CTV
Intensive price war in 14 CTV market segment particularly launched by Aiwa which is
offering 10 to 15% lower prices to the consumer. Also BPL is emphasizing on exports of
14 CTV and overlooking the national market.

Feedback on product performance from consumers:

Most consumers are satisfied with quality of BPLs products, life of Balsa product and
BPLs products features. They also consider it a value for money brand. Most consumers
are unsatisfied with after sales service though.

Relative quality perception of BPL brand in:

In CTVs quality perception of BPLs product is quite good with consumers.

The year 2005-2006 was one of exciting developments at BPL

48

True, there was an overall slowdown in consumer off-takes and the market sentiment was
not at its best. Brown and white goods growths were flat, if not negative in certain cases,
even in the wake of increasing competition. Despite these odds, BPL maintained its
leadership position by listening to its customers, anticipating market trends, keeping pace
with technology and strengthening its brand and product portfolios.
In addition to being the most trusted, preferred and powerful brand in our
businesses, BPLs other significant milestones were:
The No. 1 color television brand with the highest overall market share and the
leader across all screen size segments
The only single brand to cross sales of 1 million color televisions (for the second
consecutive year)
The no. 1 exporter in consumer electronics, registering a 53 growth in exports
The BPL brand is a most valuable asset and a source of competitive advantage in todays
marketplace. It id defined and articulated a powerful brand vision for BPL to stand for
Excitement. Everyone wants BPL to be he most exciting brand in the business. Driven
by the values of offering the best technology, style innovation and customer delight. This
brand vision will be the mantra to guide the business. The management and employees of
BPL are committed to devising winning strategies backed by smart operations, for
consolidating and growing the leadership in the coming years. People at BPL, recognize
the immense challenges both operational and strategies, that they face. It will be an
endeavor to meet the challenges that the men and women of BPL would be successful in
achieving the goals.

49

RECOMMENDATIONS

50

RECOMMENDATIONS

BPL should focus on the three new areas namely telecom, alkaline batteries and
color monitors besides the existing line of CTVs washing machines, audio system
and refrigerators with product development, innovations, etc.

The up-gradation of product quality through digitalization where the focus of

consumer electronics is heading towards

Identifying niche markets and segments

Increase investments in research and development (now only 0.35% of sales are
used for R & D purpose)

Indian companies like BPL have numerous schemes running for its dealers at the
same time, creating huge accounting problems for these dealers like credit notes
which are now pending for six month. The BPL can streamline dealer networks
and increase efficiency and transparency.

Better monitor and control systems for their supply logistics

Move from price cutting measures to price bundling offers especially for their
high end products.

Thus for BPL what will make a difference is the attitude of its brands. Therefore
what is needed first is strong planning backed by competitive pricing and
marketing strategies with a focus on brand differentiation.

51

BIBLIOGRAPHY

52

BIBLIOGRAPHY
Article The Marketing Guide to Entry Barriers, Business Today
Elcina News Nov, 2006.
Article, Indian Television Industry, Elcina News, Oct-Nov 06.
Articles, Clash of the titans, The Observer of Business & Politics
Articles, Selling the Idiot Box, The Observer
Article, Buying the Right TV, The Observers
Article, The Golden Industry, The Observer
Article, Videocon- Cover Report, Business World
Article, Videocon Spreading Winder, A & M
Article, BPL at a Glance, Annual Report 2005-2006, BPL
Marketing Management by Philips Kotler.

53

ANNEXURES

54

ANNEXURE I
DEALER QUESTIONNAIRE
Q. 1: How many units did you sell in Dec05 (give in no.)?
CTV
Q. 2: What was the breakup (no. of units sold in each model)?
CTV
14 model
20 model
21 model
25 model
29 model
Q. 3: Which other brands do you keep in you showroom (please tick)?
LG

Videocon

AKAI

AIWA

Samsung

SONY

Q. 4: What do you think about the margin given by the company?

1. Very Good

2. Average

55

3. Low

Q. 5: Do you think company should force all its dealers to sell its product at fixed price?
Y

or

Q. 6: Are you satisfied with the current inventory level?

Y

or

Q. 7: According to you which of the following factor will result in increase in sale BPL
product from you counter?
(Give 1-for Best Factor, 2-for Average factor, 3-for Poor factor)
Increase margin through uniform pricing
Training your sales person on BPL product features
Faster (order to delivery) process
More frequent contact by company sales personal
Better after sales service
Better advertising publicity

Q. 8: Is BPLs reward system for dealers good enough to motivate you?

Agree

or

Disagree

Signature of Interviewee
Name :

Signature of Interviewer

_____________________________________
56

Address:

_____________________________________

ANNEXURE II
CUSTOMER QUESTIONNAIRE
Personal Information
Name

___________________________________

Address

___________________________________

Tel. No.

___________________________________

Q. 1: According to your which are the top two brands in following consumer durables?
CTV
Sony

BPL

Videocon

Akai

LG

Samsung

Panasonic

Aiwa

Q. 2: which of the following stimulus motivate you to purchase consumer durable

products? (Please tick any one)
Discount Offer

Exchange Offer

Advertising & Publicity

57

Q. 3: Your previous purchase decision of BPL products was influenced by:

Dealer advice

Past Experience

Neighbor Advice

Wife Pursuance

Warranty

Children Pursuance

Q. 4: What is your satisfaction level (on give parameters) for BPL Product
currently used by you? (Please tick under appropriate column)

After

Fully

Partially

satisfied

satisfied

Unsatisfied

Strongly
unsatisfied

sales

service
Quality
Life

of

product
Value

of

money
Features

Q. 5: What are the problems (if any) faced in the current BPL product owned by you? (If
any):
_______________________________________
_______________________________________

Signature of Interviewee

Signature of Interviewer
58