2. GDP
$3900
2.83%
Sources : IBEF, GEPL Capital Research
37
44.2
50.1
67.2
67.5
72.8
88.9
97.1
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
Karnataka's GSDP
Figures in US$ Billion
ECONOMIC SNAP SHORT

3. Per Capita Income Average Expenditure Average Savings
$1,624.4
(Rs. 81,220)
$1124.83
(Rs. 56,241.5)
$499.56
(Rs. 24,978)
Range No. Of
People
Avg
Expenditure
Total
Expenditure
0-20 47 10,000 4,70,000
21-40 43 30,000 12,90,000
41-60 9 50,000 4,50,000
61-80 10 70,000 7,00,000
81-Above 41 90,000 36,90,000
TOTAL 66,00,000
31%
29%
6%
7%
27%
Exp. on consumer Durables
0-20
21-40
41-60
61-80
81-above
Sources : Marketing White Book 202-13 | Expenditure
analysis – Questionnaire : Sample size 150 consumers
INCOME, INVESTMENT & SAVING PATTERN
AVERGAGE EXPENDITURE ON CONSUMER
DURABLES
66,00,000/ 150 = 44,000 P.A
*Figures Per Annum

4. Why Do They
Buy?
Increasing
literacy rate
Chief earner
contributing
to income
Rise in
disposable
income
Ease access
to credit
Increase
electrificatio
n of rural
areas
Change in
life style
Change in
education
pattern
Web
connectivity
When they buy, What all influence them & how much effort they make

5. Media Reach
Sources : Marketing White Book 2012-13 | IRS 2010, 2011,
2012 Data.
When they buy, What influence them & How much effort they put in
66
49
62
21
23
28
13
31
10
Kitchen Appliance Kitchen Utensils Home Electronics
BRAND LOYAL BRAND NEUTRAL BRAND INDIFFERENT
0
10000
20000
30000
40000
50000
60000
PRESS TV SATELLITE RADIO CINEMAS
2010
2011
2012
Brand Loyalty
*Population in ‘000 *Figures in percentage

6. Decision Making
Sources The Knowledge Company, Technopak 2011
78
17
2 2 1
58
34
3 1 4
SELF HUSBAND OTHER FAMILY MEMBER FATHER/MOTHER CHILDREN
KITCHEN APPLIANCE HOME ELECTRONICS
*Figures in percentage
When they buy, What influence them & How much effort they put in
Preferred Format
*Figures in percentage
67
59
23 22
7
15
2 31 1
0
10
20
30
40
50
60
70
80
KITCHEN APPLIANCE HOME ELECTRONICS
EXCLUSIVE OUTLETS OF THE PRODUCT EXCLUSIVE OUTLET OF THE BRAND MULTI BRAND OUTLETS
EXIBITIONS & FAIRS OTHER FORMATS

7. When they buy, What influence them & how much effort they put in
Preferred Location
Sources The Knowledge Company, Technopak 2011
56
52
29
27
11
15
3 4
2 2
0
10
20
30
40
50
60
KITCHEN APPLIANCE HOME ELECTRONICS
UPTO 1 KM 1KM - 2KM 2.1 KM - 5KM 5.1 KM - 10 KM More than 10 KM
*Figures in percentage

8. INDUSTRY ANALYSIS

9. 30%
18%13%
5%
34%
MARKET CONSTITUENCY
Colour TV
Refrigerator
Air Conditioner
Washing Machine
Others
WHITE GOODS BROWN GOODS
CONSUMER
ELECTRONICS
Refrigerator Oven Television
Washing Machine Chimney DVD Player
Air Conditioner Cooking Range VCD Player
Audio System Mixer Mobile Phone
Cleaning Equipment Grinder MP3/4 Player
Electric Fan Computer
Iron Camera
Sources : IBEF, GEPL Capital Research
85%
24% 24%
18% 15%
3% 1%
PRODUCT PENETRATION
PRODUCT PENETRATION
INDUSTRY SIZE Rs. 350bn (as on March 2012)
KEY CATEGORIES
White goods, Brown Goods & Consumer
Electronics
COMPETITIVE
LANDSCAPE
Korean Players – LG & Samsung
GROWTH
OPPERTUNITIES
Lower penetration coupled with increasing
disposable income
Sources : CEAMA, MOSPI, GEPL Capital Research
Sources : IBEF, GEPL Capital Research
Sources : IBEF, GEPL Capital Research
INDUSTRYALLABOUT

10. 104.2
375
208.3
12.5
187.5
300
312.5
Carrier
Whirlpool
Bluestar
Haier
Videocon
Panasonic
LG
UPCOMING INVESTMENT BY MAJOR PLAYERS
USD million
Source: Business Standard, company websites, Aranca Research
YEAR COMPANY INVESTMENT
(in USD million)
2012 LG 375
2014 Panasonic 208
2012 Videocon 12.5
2015 Samsung 94
Consumer Durables Firms to Augment Investments in Coming Years
FDI in Retailing encourages more
foreign (Single [100%] & Multi Brand
[51%]) Retailing
65%
35%
URBAN - RURAL PENETRATION
FY11
Urban
Rural
49%51%
URBAN - RURAL PENETRATION FY15
Urban
Rural
Source: Corporate Catalyst India, Aranca Research
INDUSTRYATTRACTIVENESS
* Estimated figures for FY2020

11. Growing
Demand
Higher real
disposable income
Easy consumer
credit
Growing consumer
base
Policy
Support
Setting up EHTP's
Increasing
liberalistaion &
tariff relaxation
Favourable FDI
climate
Increase In
Investment
Expanding
production &
distribution facility
in india
Incresing R&D
activity
Providing global to
foregin projes
through india
GROWTH DRIVERS
INVITING RESULTING
Notes: EHTP - Electronic Hardware Technology Park, FDI - Foreign Direct
Investment, R&D - Research and Development

12. WHO ALLARE THERE & WHERE ARE THEY PRESENT

13. 12
7
8
9
12
9
3
CROMA RELIANCE
DIGITAL
NEXT VIEVEKS E ZONE GIRIAS PAI
NUMBER OF STORES IN BANGALORE
STORES & BRANDS SERVED IN BANGALORE
1 2
STOCK LEVELS
Most of the national level stores have there own
brands as well!

14. THE CONSUMER WAY

15. BUYING BEHAVIOR & BRANDS
10%
35%
52%
3% 0% 0%
LG SAMSUNG SONY GODREJ VIDEOCON WHIRLPOOL
TECHNOLOGY WISE RANKING
Technology
*Figures in percentage
Sample Size 150 Consumers
9%
37%
33%
15%
6%
0%
GODREJ LG SAMSUNG SONY WHIRLPOOL VIDEOCON
CUSTOMER SUPPORT AND SERVICE
*Figures in percentage
Sample Size 150 Consumers
5% 7%
43% 41%
3%
0%
GODREJ LG SAMSUNG SONY WHIRLPOOL VIDEOCON
ATTRACTIVE LOOKS
*Figures in percentage
Sample Size 150 Consumers
Looks
Service

16. BUYING BEHAVIOR & BRANDS
*Figures in percentage
Sample Size 150 Consumers
34%
22%
10%
34%
0%
LONG LASTING
9%
16% 19%
53%
3% 0%
BRAND VALUE
6%
65%
19%
7%
3%
0%
GODREJ LG SAMSUNG SONY WHIRLPOOL VIDEOCON
FACE OF MICROWAVE OVEN
BRAND & BUYING PREFERENCE
Long Life
*Figures in percentage
Sample Size 150 Consumers
Brand Value
*Figures in percentage
Sample Size 150 Consumers
Microwave Oven

17. 7%
22%
69%
3% 0% 0%
FACE OF TELEVISION
BRAND & BUYING PREFERENCE
TV
*Figures in percentage
Sample Size 150 Consumers
AC
*Figures in percentage
Sample Size 150 Consumers
7%
43%
19%
25%
7%
0%
FACE OF AIR CONDITIONER
21% 19%
9%
51%
0% 0%
FACE OF WASHING MACHINE
Washing Machine
*Figures in percentage
Sample Size 150 Consumers
Refrigerator
*Figures in percentage
Sample Size 150 Consumers
19%
33% 33%
7%
9%
0%
FACE OF REFRIGERATOR

18. VISIBILITY OF THE BRAND IN TV
10%
3%
28%
25%
33%
6%
10%
22%
34%
28%
7%
13%
16%
30%
35%
16%
30%
29%
25%
0%
15%
30%
32%
23%
0%
25%
22% 22%
19%
13%
1 2 3 4 5
LG SONY SAMSUNG VIDEOCON WHIRLPOOL GODREJ
*Figures in percentage
1, 2, 3, 4, 5 –RANKS
5 – HIGHEST| 1 - LEAST

19. FINDINGS & CONCLUSION
GENERAL
• Contribution of CDI to GSDP – 6.59% (approx.)
• A person spend about – 48% of his disposable income in CDI
• Living standard has increased
• Better connectivity
• More choices & options
• Affordability
COMPETITION
• High visibility of brands like LG, Samsung, Sony. – But Videocon rarely present
• Not utilizing all source of promotion – Which other brands are making a good use of
• No. of competitors is increasing (including house brands)
• Very intense marketing and reach towards consumers – Videocon inactive
• Deep product line – which Videocon is lacking
• A Good after sales service – many stores do not keep Videocon because of poor service
• Fewer incentives to dealers/retailers

20. OPPORTUNITIES
• Consumer durables market expected to expand at a CAGR of 14.8 per cent to USD12.5
billion in FY15 (from USD7.3 billion in FY11)
• Demand from rural and semi-urban areas is expected to expand at a CAGR of 25 per
cent to USD6.4 billion in FY15 from USD2.1 billion in FY10
• By FY15, rural and semi-urban markets are likely to contribute a majority of consumer
durables sales
CONSUMER PREFERENCE – for Videocon
• Shifting brand loyalty to other companies
• Low preferred brand
• Brand recall required
• Dull looks & poor technology
• Poor customer service
FINDINGS & CONCLUSION
Source: Corporate Catalyst India, Aranca Research

21. THANK YOU
A PROJECT WORK BY
Teenu Susan George | teenu.george@mba.christuniversity.in
Nikhil Jain | nikhil.jain@mba.christuniversity.in