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Videocon Dth

BRAND AUDIT: VIDEOCON DTH 2011 GROUP 1 MAUNIL RITU ROHAN SHOIB SIDDHARTH VARSHA 10/25/2011 TABLE OF CONTENTS Contents BRAND INVENTORY2 HISTORY2 PORTFOLIO OF VIDEOCON PRODUCTS3 BRAND ELEMENTS FOR DTH4 VIDEOCON DTH PRICING, MARKETING AND DISTRIBUTION6 BRAND EXPLORATORY10 CUSTOMER KNOWLEDGE10 SOURCES OF BRAND EQUITY15 CBBE FOR DTH17 BRAND POSITIONING19 POD AND POP19 THREATS TO BRAND EQUITY21 RECOMMENDATIONS TO SUSTAIN BRAND EQUITY21 BRAND INVENTORY HISTORY

Videocon, founded in 1985 by Nandlal Madhavlal Dhoot, is an Indian multinational with business into consumer electronics, mobile phones, oil and gas, colour picture glass tube, telecommunications and DTH. Having interests to expand all over the world, Videocon has not only 17 manufacturing plants in India but also has extended its stake into countries such as China, Italy, Mexico etc. It is also the third largest picture tube manufacturer in the world.

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Videocon started with manufacturing Television sets and washing machines in India and eventually in 1990s forayed into manufacturing other consumer electronics and appliances including glass shells for CRT. Once the biggest moves for Videocon was on July 7, 2005, when it acquired the entire stake of Electrolux India and Thompson CPT. It was in the same year that Videocon took over Hyundai Electronics. As they progressed and expanded into new businesses, Videocon moved into the DTH service in July 2009 under the brand name as Videocon ‘d2h’.

DTH services had already started to make its presence in the Indian market with the launch of Dish TV by Essel Group’s Zee Entertainment Enterprises back in 2004, that was soon followed by Tata Sky, Airtel Digital Tv and Reliance’s BIG TV to name a few. Even though Videocon did not have the first mover advantage, they soon built up the service and in Oct 2009, Videocon d2h was awarded as the 4th most Successful Brand launched in 2009 by Brand Derby Survey done by Business Standard.

The offerings soon were differentiated with the introduction of satellite DVDs in Nov 2009 and further the 3D versions of all set top boxes in March 2011. They also offered LCD & TVs with built-in DTH satellite receiver, which was relatively a new concept unlike the other players who provided only the set top box. By Feb 2010, they grew big and achieved Pan India Operations. PORTFOLIO OF VIDEOCON PRODUCTS The Group Videocon is worth around US$ 4. billion and its brand portfolio and partners include- AKAI| | Electrolux| | Kelvinator| | Kenstar| | Toshiba| | Sansui| | Hyundai Electronics| | *In the form of Marketing Operation and Distribution agreement signed The Videocon products have been segregated based on the interests of the company and includes- * Consumer electronics and appliances * Mobile phones * Oil and gas * Colour picture tube glass * Telecommunications * DTH services The Videocon d2h products portfolio includes- Satellite HD box| Satellite HD DVR| Satellite HD box (3D)| Satellite DVD| Satellite LCD| Features| * Mosaic (12 PIP) – Genre wise * Favourites * Multilingual Channel Guide * Preview Screen (Full Guide) * Info Bar * Tickers * Active Services – Direct Active ( Darshan, State, Channel & East)| * Full HD Picture Quality (1080i) * 5 x times Digital Quality Picture * HDD Sound – High Definition Digital Sound * 16:9 Wide Aspect Ratio * Record upto 200 hours * Slow motion feature| * High Definition Satellite Box * Full HD Picture Quality (1080i) * 5 x times Digital Quality Picture * HDD Sound * 16:9 Wide Aspect Ratio * USB Port * Active Music Space * Multiple Tickers * d2h Movies| * Co-axial Digital Audio Output * Smart Power Control * DTH enabled Satellite DVD * USB Port * Multimedia Card Port * DVD / MP3 / VCD / SVCD / ACD / KODAK * DiVX / MPEG-4 compatible * Power Resume| * Inbuilt D2H * UV Glossy Look * HD Ready * 200000:1 Contrast Ratio * MPEG4 & DVB S2 Technology * Tickers * Energy Meter * Capture Logo| Package| Based on zone and channels| Based on zone| Based on zone and channels| Based on channels| -| Offers| Available| -| Available| -| -|

Warranty| Life time| Life time| Life time| Life time| -| Price| Rs. 1390/-| Rs. 3990/-| Rs. 1690/-| Rs. 2690/-| Varies with screen size| BRAND ELEMENTS FOR DTH About 3 years ago, the Videocon group, with great fanfare in Los Angeles, launched their new logo to project a more modern look that gave a contemporary feel. The logo was unveiled by none other than Videocon brand ambassador Shahrukh Khan. The new logo is based on the consumer-based approach of the brand and it’s positioning is supposed to be nearer to the consumers heart – both in terms of its ideals and philosophies, as well as its servicing characteristics. The brand make-over is aimed at young consumers who have a new international mind-set.

Below are the new and old logos and the launch pictures: Note how the new logo indicates ‘green’ and ‘fluidity’. The message from Videocon is that it is ready to get adapted to the changes in the coming times. The logo was brought to life by the two characters ‘Chouw’ and ‘Mouw’ which represent the 2 parts of the V of the logo. Both the characters have certain personality traits based on their physical attributes. A series of short videos of these two characters was presented to promote the new brand image. Although a good concept, it can be surmised the new mascots failed to connect with the audience and did not generate enough brand recall.

Videocon DTH name has the advantage that the brand name is almost the category name of the brand (direct to home). Hence, in that sense, Videocon has played a master stroke in increasing the salience of the brand. The punch line rhymes well ‘Direct Hai, Correct Hai’ and gives a meaning to the brand and should help in building of the brand mantra. The circle of the logo can be interpreted as the button of your TV remote which is further a source of brand association. DTH has chosen Abhishek Bachchan as its brand ambassador, looking at his clean image and family values. Below is the logo and copy of the DTH brand: VIDEOCON DTH PRICING, MARKETING AND DISTRIBUTION

Videocon launched its Direct-to-Home services after a lot of other companies had already made their presence in the Indian market however, ever since they launched their services they differentiated themselves by highlighting that they were only one to offer the customers across India the world’s first Satellite LCD, Satellite TV, Satellite DVD as well as the Satellite Box (STB). On one of the occasions Mr. Anil Khera, CEO, Bharat Business Channel Ltd. (BBCL) said, “We are glad to introduce our satellite range of products and services. We are the latest entrant in the DTH category in India, but surely not the same as others. We are creating a new category of Satellite Products. Our exclusive line of Satellite range of products is sure to catch the eye of today’s consumer, who is looking for technological innovations. At Videocon d2h, we promise to deliver the latest providing value for money to our consumers. The market segmentation for Videocon d2h primarily focused on women who are regular viewers and engage in daily soaps. In other cases, they also focus on women intend to learn English as an added feature of DTH service. Videocon also concentrated on children by providing games, dictionary, discovery videos, specially inbuilt Math, Science and Social exercises etc, while older group of customers are offered special services such as videos of deities and programs with cultural and religious content. Hence, this marketing strategy focused on product – the first ‘P’ of marketing mix. Videocon d2h, considered world’s first satellite television product introduced with the most advanced DTH Services, has a pan-India presence.

Videocon d2h was first launched in the Punjab market, followed by a phase wise launch across various regions. Today, it is available in almost all cities of India and grown to a position where acquiring a connection is not a deterrent. Thus, Videocon has successfully leveraged the use of place- the second ‘P’ of marketing mix. Videocon d2h employs special marketing strategies for promotion and sales of its product. The steps below outline their strategies- * Advertisements with the brand ambassadors (Secondary associations) The main reason lies in the fact that film stars and celebrities add the quotient of fun and entertainment to these services.

Abhishek Bachchan was roped in to become the face of Videocon ‘d2h’ and feature across all Videocon d2h brand and product communications including advertisements on TV, print, outdoor, radio. Videocon invested Rs 1billion to promote the brand and with time, Abhishek was instrumental in communicating the benefits to consumers across the country. * Packages form the other component of the promotion and sales that may come as discounts, offers or regional packs to suit the customers. Videocon has performed a customer categorization based on the needs and has customized various packages suit their viewing preferences, location and tenure for which the customers want to buy.

In A-La-Carte services, customers are given the option to design their own package either by choosing individual channels or by combining two or more existing packages. The next marketing mix, Price played a part to increase their market share. When Videocon launched the set up boxed for its DTH services, the market already had big players. Thus, it was essential for them to use competitive pricing to enter the market and push volumes, acquire market share and create itself as an option for the customers to buy the service. Therefore, set-top boxes were cheaper than the ones available in the market and pricing became an important strategy with Videocon across all its product lines.

With contact to Thomson technology, Videocon d2h has developed a patented hardware and CAS system and this seem to work for them by cutting set-top boxes prices by half. The D2H prices were lower than its competitors such as Airtel and Tata sky as seen in the table. DTH| PACKAGE| NO OF CHANNELS| COST PER MONTH| COST PER CHANNEL| Dish TV| Titanium pack| 193| 332. 5| 1. 722797927| | Child pack| 190| 165| 0. 868421053| | Platinum| Shine Pack+1 free top up190| 312| -| | Gold| 165| 210| 1. 272727273| | Silver| 145| 125| 0. 862068966| | South platinum| 190| 312| 1. 642105263| | South Gold| 155| 190| 1. 225806452| | South Silver| 145| 125| 0. 862068966|

D2h| Gold pack| 125| 150| 1. 2| | Diamond pack| 165| 275| 1. 666666667| Airtel| Super value| 110| 127| 1. 154545455| | New value| 118| 160| 1. 355932203| | Economy| 155| 221| 1. 425806452| | Mega| 177| 304| 1. 717514124| | Ultra| 184| 364| 1. 97826087| BIG TV| Value pack| 81| 90+ Taxes| 1. 111111 + Taxes| | Bronze pack| 111| 135+ Taxes| 1. 216216 + Taxes| | Silver pack| 123| 180+Taxes| 1. 463414 + Taxes| | Gold pack| 138| 225+Taxes| 1. 630434 + Taxes| | Diamond pack| 152| 270+Taxes| 1. 776315 + Taxes| | Platinum pack| 156| 315+Taxes| 2. 019230 + Taxes| TATA SKY| Super Hit pack| 63| 160| 2. 53968254| | Super Value pack| 103| 200| 1. 941747573| Super Value Kids pack| 104| 225| 2. 163461538| | Super Saver pack| 124| 275| 2. 217741935| Distribution Companies such as Videocon have a strong distribution and dealer network in India with presence in almost all cities. Moreover, Videocon has leveraged its tie up with channel partners, which are hard to break, in order to better penetrate the market and reach customers. * Videocon connected with Tech Mahindra as their IT partners and IBM to provide an excellent technology infrastructure. * Videocon’s, media arm Bharat Business Channel and its partners offer scalable Conditional Access system (CAS) that protects content conveyed over cable networks.  With 75,000+ Distributor/Dealer/Sub-dealer base, Videocon provides the best regional content. * Channel partners have enabled Videocon to offer bulk services (value added services/active services/products) and decrease the distribution costs. The above points poses a major threat in front of the new entrant as Videocon d2h already serves with the channels and the new entrant will have to persuade the channels to accept its product through high margins, promotional allowances, better credit facilities and advertising support, which will reduce the profits. Thus, Videocon d2h experiences a cost advantage as compared to new entrants. BRAND EXPLORATORY

CUSTOMER KNOWLEDGE DTH market in India is growing rapidly. This is estimated to grow at a rapid rate of 24%. With the government of our country deciding on digitizing the whole cable network, the potential for growth is really enormous. To tap this growing market, corporate giants across the country are making their presence felt in this growing DTH segment. While in most countries across the world, only 2 or 3 DTH operators operate, in India there are 6 DTH operators. The competition is really fierce and they are biting off each other’s market share for growth at this moment. But the fact to be noticed here is that the customer is the ultimate beneficiary.

Find below the market share of the Indian DTH operators as on July 2011 DTH operator| Launched in | Market Share| Subscribers| Dish TV| Jun-05| 31%| 11000000| Airtel| Nov-08| 17%| 5600000| TATA Sky| Sep-06| 19%| 6000000| Sun Direct| Mar-08| 16%| 5500000| Big TV| Sep-08| 9%| 3600000| Videocon DTH| Apr-09| 8%| 3000000| Videocon was the last player to foray into the market with its Value for Money proposition of its DTH. As already shown in the exhibit before, Videocon DTH provides the best Value for Money across various entry packs. A Summary of the comparison across various DTH operators is shown below (Source: www. indiabroadband. com) VIDEOCON D2H Growth: Videocon D2H is growing rapidly. It is estimated to outpace Big TV in the following year.

Videocon D2H is also the most successful brand in the last quarter. The growth of its brand is clearly visible. Videocon d2h acquired 7. 47 lakh subscribers in the first quarter of FY 2011, which is more than its competitors. Rapid advertisement spends is also planned for this purpose. Rs 800million is the allotted budget for ad-spends for 2012-13. They hope to increase their market share to 11% by the end of this year. Videocon’s potential in this emerging market can be tapped by this strategy only. The general BDI/CDI matrix indicates the following | | Category Development| | CDI:0. 027 BDI: 0. 0028| HIGH| MEDIUM| LOW| Brand Development| HIGH|  |  |  | | MEDIUM| Market Leader Positions

Stronger base from which to build share|  | | LOW| Position of Videocon Cost of Obtaining Initial awareness and trial is high|  | The ad spending of Videocon is therefore justified as indicated by its BDI/CDI matrix. This is strengthened by the fact that Videocon has very less good will with respect to the total Assets it possess. This contributes to just 0. 0015% of the total assets and has been in a decline as indicated by the graph below. With this at the background, it was also intended to carry out a study to determine what factors influence the purchasing and recommending power of the user. The study was conducted based on reviews obtained from www. mouthshutreview. com.

The data indicated the presence of two important variables. The significance of the same was tested. The two variables are: * Price and features(including Service) * Advertisement Based on these factors two hypotheses were formulated. These were subjected to statistical test based upon the data obtained from 30 reviewers. The variables had significant amount of co-relation between them and were identified as two important factors. The hypotheses based on these factors are Hypotheses: H1: Sale of Videocon D2H does not depend upon Price and features offered: Rejected H2: Sale of Videocon D2H is not influenced by advertisement: Accepted Descriptive Statistics| | N| Minimum| Maximum| Mean| Std.

Deviation| Movie | 31| 1| 5| 2. 87| 1. 648| Quality of Display| 31| 1| 5| 3. 42| 1. 544| Service| 31| 1| 5| 3. 29| 1. 553| Interactive services| 31| 1| 5| 2. 81| 1. 662| Price| 31| 1| 5| 2. 97| 1. 169| Advertisement| 31| 1| 4| 2. 29| . 902| Valid N (listwise)| 31| | | | | Coefficientsa| Model| Unstandardized Coefficients| Standardized Coefficients| t| Sig. | | B| Std. Error| Beta| | | 1| (Constant)| 3. 065| . 169| | 18. 111| . 000| | REGR factor score 1 for analysis 1| . 911| . 172| . 706| 5. 294| . 000| | REGR factor score 2 for analysis 1| . 070| . 172| . 054| . 404| . 689| a. Dependent Variable: Recommendation| MEASURING BRAND STRENGTH: 1.

This project has measured the Brand strength with respect to its overall sales recommendation provided by the users across the country. 2. The Score for recommendation depends on Price and features and does not depend upon advertisement spends. 3. The co-efficient indicate the fact that with a 0. 911 unit increase in price and features provided the brand strength in terms of its recommendation power increases by 1 unit. SOURCES OF BRAND EQUITY Videocon D2H tries to derive its brand equity from the following sources: * Logo * Corporate * Brand * Brand Ambassadors * Brand elements * Revamped Videocon logo * Brand * Characters: Chau and Maou * Punch line * Technology: MPEG-4

The two major sources of brand equity are brand awareness and brand image. Brand awareness further consists of brand recall and brand recognition. Based on our interviews, we found that D2H fares poorly along these dimensions, as respondents failed to confirm prior exposure to the brand. Especially along the brand recall dimension, D2H fares poorly as given the product category of satellite television, respondents failed to recall the brand. It can be thus said that Videocon marketers failed to establish the ‘brand node’ in the memory of the consumers and hence failed to create a brand association. A positive brand image happens when strong, favorable and unique associations are created in the memory.

Strong and favorable associations have already been created in the minds, due to the secondary association of the corporate brand Videocon. However, the uniqueness association is still evolving. In an attempt to achieve this, D2H has managed to score a few points when it has tried to offer the LCD TVs with built-in set top boxes. D2H has a number of attributes that it competitors do not. D2H offers a wide range of regional channels. However, it is not cashing in on these brand attributes. It needs to be found out if consumers derive brand benefits out of these attributes. It may be the case that a large no. of regional channels are available but consumers attach no importance to them and hence derive no brand benefit.

CBBE FOR DTH Shown above, is the Consumer based brand equity model theorized by branding Guru Kevin Keller. This model says that consumer based brand equity happens when consumers provide a differential response to marketing activities of the brand, and talks about how consumer knowledge affects their response to those marketing activities due to the brand equity. The base of the pyramid model talks about Brand Salience. Salience is the measure of how frequently the brand is evoked under various situations. We believe that the brand has a low salience chiefly due to the fact that it is a young brand has not got enough time to build brand equity.

Also, it seems that the marketing spend by competitors is much bigger in terms of above the line communication. Albeit, one can say, that the name Videocon itself is a potent cue for brand recall. Brand performance is what the firm tells customers about the brand in their communications. So this will mean how the brand will perform, what features it will provide, and how the customer can benefit from its use. Brand performance includes dimensions that differentiate the brand. D2H differentiates itself by offering more regional channels, more total channels and bundled services as shown above in the pyramid. Brand imagery includes the way in which the brand attempts to meet the customer’s psychological needs.

It is the way people think about the brand abstractly. The different intangibles that are abstract and can be linked to a brand are: user profiles, personality, values, history, heritage and experiences. Videocon has a long history in India as one of the pioneers in consumer electronics and D2H builds on this brand imagery. Also, the corporate brand Videocon stands for fairly reliable product quality for the mass market. The imagery that D2H has built includes entertainment variety, lot of consumer options, easy payment and channel flexibility. Brand judgment is formed by putting together all of the brand images and performance associations. The 4 judgments where D2H rates are as follows:

Quality: Consumer may view Videocon as a fairly good quality brand which can bring all the values of its parent brand combined with reliability and efficient service. Credibility: Consumers rate Videocon low in terms of perceived expertise and this can be due to the presence of several international giants. However, in the D2H segment, the perceived quality will approximately be the same for all competitors. Consideration: Customers rate Videocon fairly high in terms of its inclusion in their consideration set. They will consider the brand to be relevant because strong and favorable associations have been created by the brand. Brand feelings are customer’s emotional reactions and responses to the brand.

D2H, through its ad campaigns has generated the feelings that it is sort of the pioneer in offering the LCD with the built in set-top-box in India. Also, its campaigns generate a feeling that it is a technology intensive brand using all the latest technologies like MPEG-4 and so on. The ‘Direct Hai, correct Hai’ campaign generates the feeling that direct satellite technology is the best technology for the consumer. BRAND POSITIONING POD AND POP Points of difference are attributes or benefits that customers strongly associate with a brand, positively view it and believe they cannot find to the same extent with a competitive brand (Keller, Parameswaran, Jacob, 2011). D2H has set up a number of schemes and attributes to differentiate itself from its competitors.

D2H has the following PODs: * TVs with built in STBs * More regional channels than competitors * More HD channels * Claim to be the first industry player to introduce 3D TV * User friendly payment system * Leverages the brand equity of Videocon and its experience with consumer business The HD DVR offered by D2H is the first in the industry and instantly differentiates it from its competitors. With a lot of hype being created about HDTV, D2H can set up an ideal platform that can be leveraged to extract benefits out of other HD offerings. Young urban consumers love to make transactions online and this will also help D2H in eliminating its fixed costs.

The online payment system will further differentiate D2H on the convenience dimension. Points of parity are not unique to one brand but may be shared with other brands. (Keller, Parameswaran, Jacob, 2011). Category points of parity are necessary but not sufficient conditions for positioning. Competitive points of parity negate competitors’ points of differences. Especially, during product line extensions, it is critical that ideal POPs be clearly established to gain customer credibility and trust. Videocon sure has a long drawn consumer electronics background but it needs to create sufficient points of parity to convince the consumer that it is a serious player in the D2H industry.

The POPs are as follows: * A generic Direct to home satellite television provider * Satisfies all the basic needs of a DTH provider * Provides options in the form of packages, products, services * Strong network of deals, service personnel and technicians * Call centers to address customer queries THREATS TO BRAND EQUITY RECOMMENDATIONS TO SUSTAIN BRAND EQUITY * Brand Architecture * Brand Hierachy * Brand Growth Strategy Bibliography: 1. http://www. videocond2h. com/wsc/products. aspx 2. http://www. videocond2h. com/wsc/packages. aspx 3. http://indiandth. in/Thread-Big-CBS-Prime-hops-on-to-Videocon-d2h 4. http://www. adgully. com/marketing/abhishek-bachchan-to-endorse-videocons-d2h. html 5.