The document discusses the consumer electronics industry globally and in India. It provides an overview of key players, trends, opportunities and challenges in the industry. It then discusses a potential business model and marketing strategy for an electronics retail store in India, including target customer segments, differentiation strategies, and the marketing mix.

1. A BUSINESS MODEL Presented By : Ashish Bansal NMiMS,Mumbai (India)

2. OUTLINE

8. Source: CEA

11. GLOBAL PLAYERS

12. Major Players Top 10 Major Players, by 2005 Revenue Rank Company Revenue ($M) 1-Year Change (%) Employees 1 General Electric Co. 148,019 – 2.2 307,000 2 Siemens AG 90,670 17 461,000 3 Matsushita 81,298 13.0 334,752 4 Samsung Electronics Co., Ltd. 78,250 44.2 123,000 5 Sony Corp. 66,912 – 7.2 151,400 6 Microsoft Corp. 39,788 8.0 61,000 7 Royal Philips Electronics NV 35,972 – 12.4 231,161 8 Sharp Corp. 23,616 10.5 46,751 9 Sanyo Ltd. 24,174 – 1.4 96,023 10 LG Electronics Inc. 23,542* 39.4* 66,614* *2004 figures. Sources: Hoover's; WetFeet analysis.

13. KEY FINDINGS

18. URBAN VS RURAL- CHINA

27. CLASSIFICATION OF CITIES AND TOWNS

28. The existing size of this sector stands at an estimated USD 4.5 Billion with organized retailing being at 5% Source:http://www.valuenotes.com/one-time/IndianRetailSector_11oct06.asp?ArtCd=86179&Cat=&Id

29. RETAIL FORMAT IN CE MARKET Sourse:http://www.valuenotes.com/one-time/IndianRetailSector_11oct06.asp?ArtCd=86179&Cat=&Id

30. Dem ographic Profile of India Source:http://www.valuenotes.com/one-time/IndianRetailSector_11oct06.asp?ArtCd=86179&Cat=&Id DEMOGRAPHICS OF INDIAN MARKET

31. INCOME GROUPINGS AND OWNERSHIP (OWNERSHIP PER HOUSEHOLD) Source: The Great Indian Market August 9, 2005 Results from the NCAER’s Market Information Survey of Households

32. DEMAND OF CONSUMER DURABLES (FIGURES IN '000) Source: The Great Indian Market August 9, 2005 Results from the NCAER’s Market Information Survey of Households

33. PENETRATION OF CONSUMER DURABLES (NUMBER OF HOUSEHOLDS OWNING GOODS PER '000 HOUSEHOLDS) Source: The Great Indian Market August 9, 2005 Results from the NCAER’s Market Information Survey of Households

34. RURAL DEMAND- CONSUMER DURABLES (% OF ALL INDIA) Source: The Great Indian Market August 9, 2005 Results from the NCAER’s Market Information Survey of Households

40. KEY PLAYERS

41. SOME KEY STATISTICS

44. ENTRY BARRIERS

52. HIERARCHY OF OBJECTIVES Company Mission/Vision Corporate objectives Corporate strategies Divisional objectives Divisional strategies Product/brand objectives Brand strategies Program objectives Tactics Level I Level 0 Level III Level II Level IV

57. MARKET SEGMENTS Segment Size Characteristics Distinctive Attribute Globetrotters 10% Age 45-54; mostly male; employed in senior positions Innovators, would prefer to buy niche products like Laser TV's Road Warriors 20% Mostly in corporate management and sales, property management and real estate Would prefer to buy high end products, tech savvy Corporate Wanderers 12% Travel less than Globetrotters or Road Warriors; spend most time visiting employees within their own companies Would prefer to buy high end laptops and PDA’s High e-mail users

58. MARKET SEGMENTS Segment Size Characteristics Distinctive Attribute Collaborators 8% Age 25-44 Well educated young professionals, tend to hold advanced degrees Team leaders, project managers Innovators Frequently change gadgets Not very mobile but need mobile products Corridor Cruisers 15% Similar profile to Collaborators Not as likely to adopt new products as Collaborators Hermits 8% Least mobile; Youngest segment (many under 35) Seldom work with others Mostly finance and telemarketing Users of standard electronic goods Prefer moderate purchase Solo Practitioners 16% Like Hermits but older Diverse collection of technical professionals in small to medium-size companies Typically connect to corporate network when traveling so likely to buy sophisticated gadgets via exhaustive demonstration Small-Site Bosses 11% Run small business Look for value-for-products

59. TOTAL PRODUCT CONCEPT Generic product Expected product Augmented product Potential product Regular White and Brown Goods New Brands & Technologies Latest Products Laser TVs & Handheld PCs CE spare parts & add ons

61. MARKETING STRATEGY PRESENCE RELEVANCE PERFORMANCE BONDING

72. WORSE VALUE PERCEIVED AS EXPLOITATIVE PREMIUM PERCEPTION HIGH VALUE PERCEIVED – VALUE ENHANCEMENT Competitive Quality HIGH LOW Relative Price LOW HIGH Our store Next POSTIONING OF OUR BRAND Croma Vijay Sales