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Marketing Strategies of BPL Color Television - Essay Example

I here by declare that the project report entitled “Marketing Strategies of BPL Color Television” submitted in partial fulfillment of the requirements for the degree of Master of Business Administration to Sikkim-Manipal University, India, is my original work and not submitted for the award of any other degree, diploma, fellowship, or any other similar title or prizes.

This is to certify that the project report entitled “Marketing Strategies of BPL Color Television” submitted in partial fulfillment of the requirements for the degree of Masters of Business Administration of Sikkim-Manipal University of Health, Medical and technological sciences Mr. NIKHIL NAGPALhas worked under my supervision and guidance and that no part of this report has been submitted for the award of any other degree, diploma, fellowship or other similar titles or prizes and that the work has not been published in any journal or magazine.

A retrospective view of the electronic product of India (the history is not very long) bring forth the fact that within the last two decades the manufactures preference for foreign goods and items. After the Asiad games in New Delhi the market for color television has increased phenomenally. The companies, which entered the Indian market whether foreign or Indian, could en-cash the ever-growing demand of consumer goods particularly color television. Such products are considered to be status symbol. A review of the sudden mushroom growth, electronics industry along metropolitan cities is very interesting as well as informative.

As if not to be left behind even the public sector units started the manufacturing CTVs largely based on Korean and Japanese technology. The dependence on foreign components and expertise was heavy. However, gradually this industry witnessed competition, which paved the wave for newer products. The consumer choice was largely dictated by quality and price. The competition becomes tougher day-by-day. Nevertheless there were companies, which had an edge and could monopolize the market demand in their favor. Some of these companies are BPL, Videocon, ONIDA and Philips.

In this process PSUs and the smaller units started facing looses. Some of these were declared sick and were closed. The period were followed with increased market share of these industries which were by now well established and successful (BPL-24%, Videocon-25%, ONIDA-20% Philips-12%) The policy of the Industrialization and globalization opened the hitherto protected industry to the onslaught of foreign competitors the battle become fierce. The Indian companies were forced to adopt new strategy to keep their profit curve on the rise.

The market was now flooded with latest international standard CTVs backed by state –of –art technology. This changes the market scenario considerably. BPL products could with stand the competition because of its excellent track record, consumer reliability a quality. This achievement was more or less on account of the excellent market strategies adopted by BPL India Ltd from time to time. This study is the crystallization of several weeks of arduous compilation. It is focused on building the strategic to enhance the market share for BPL Ltd. The present endeavor is a modest attempt in this regard .

Over the years, it has been observed in the market of developing countries that the Transnational Corporation, with their imposing brands; attempt at cutting –edge products and deep pocket into the newly opened market. Their initial efforts are to wipe out domestic competition Indian color television manufactures have and their share of bloodshed. The assault began in 1995, and has taken a heavy toll. Four of the country’s top color television manufactures, at that time (Videocon, BPL, ONIDA and Philips) have seen their collective market share shrink from 81% at that time to 53% today.

TNCs have forced ONIDA to put its devil to sleep; and a company’s market share is down from as high as 20% to roughly 8% today. The sound of the Videocon’s bazooka isn’t head in big cities anymore, the company’s sales are concentrated in the hinterland, and it has witnessed a 7% fall in the market share 18%. And Philips-a Company of foreign parentage but with 60years old roots in India has watched its share old color television market fall to 6% forcing the company to redesign its entire marketing approach. BPL’s figures for the brand share have also deviated also slightly. It share of the color television market has shrunk by 3.5% to 20. 6%.

This reveals that TNCs are slowly eating up the market share of the domestic players, which is ultimately affecting the profitability of the firms. The need of the hours for most of the Indian players is to find out a suitable strategy; so that they can boost up their market share, as it is directly related to profitability of the firm. BPL also intends to meet the electronic world’s giants on their home ground, through the launch of host of the new digital-era product. It intend starving off multinational on the strength of a brand that seems all set to break new ground, by displaying ‘visionary’ characteristics.

The present study is of this battle of the giants. It is an effort to formulate strategy to boost up the market share for CTV’s. Market share is a keys to profitability. It is now widely recognized that one of the main determinants of business profitability is market share. Under most circumstances, enterprises that have achieved a high share of the market dominate their smaller share rivals. The question arises as why market share is profitable? Profitability of market shares depends upon factors such as Economic of Sale, Market Power and Quality of Management.