Posted at 10.28.2018
With the improvement in the technology the tv set set in addition has developed leaps and bounds as time passes. The voyage which had started out as dark-colored & white to color function, then came up CRT Television set to plasma technology to TELEVISION, LED TV, and now 3D technology is also available in the market. Though the last two types are extremely new on the market and are too expensive, therefore have to go a long way to gain appreciable market share.
TV is the one of the main electronic tool which exists in almost every Indian home. Indian people are complete Television buffs and the entry cable and collection top box it market offers a big increase. Be it a daily soap for housewives or Sensex information for business mans, TV has become an integral part of our life.
With a worldwide style of dumping the CRT Televisions, India is of no exception to the style with the market of LCD Televisions growing nearly at a rate of 100% per time. According to Display Search evaluation the LCD TV market of India will exceed the CRT Television set market by 2012. (Ref-www. emtworldwide. com).
The major brands in Indian market are Samsung, Sony, LG, Philips, Videocon and Onida. The first choice in TELEVISION market in India is Samsung with 30% market show. The main rival is Sony with 19% market show, followed by LG with 16%. (ref. - gadgetophilia. com)
This is a Korean company using its head office at Samsung city, Seoul. It really is South Korea's largest chaebol and the world's most significant conglomerate by income. it was founded in 1938. Mr. Lee Kun-hee is the Chairman and CEO), Samsung Consumer electronics Co. Ltd. is a global leader in semiconductors, telecommunication, digital multimedia and convergence solutions; with 2003 global sales of US$ 36. 4 billion and net gain of US$ 5. 0 billion. It employing more than 88, 000 people across 89 office buildings in 46 countries, the company includes six main business units: Corporate Technology Functions, Digital Kitchen appliance Business, Digital Media Business, LCD Business, Semiconductor Business and Telecommunication Network Business.
Recognized as one of the fastest growing global brands, Samsung Gadgets is the world's greatest designer of color screens, color TVs, recollection potato chips and TFT-LCDs.
The tag series which Samsung has given to its goal customers is "Fashionista's". They are those consumers who want to look stylish and popular with everything they certainly. They are early on adopters of new technology and want to have the latest gadget. Centered upon this eyesight Samsung has chosen its target market as follows:
Age- Among the most crucial variable in choosing the portion for Samsung LCD TV is era. As the technology (Water Crystal Display) used by Samsung is new and expensive, in so doing making their LCT Tv sets quite costly and so their marker goals consumers in the age group of 30+ who have a little family and are working at a reliable position with high income. They have target GEN Y and DINKS who have high appreciation for technology and style and have the buying capacity for it.
Income - As reviewed above, due to the expensive technology the mark market chosen is higher middle class and high income group. People having high income generally maintain a good sociable status and therefore always make an effort to be modified with new and top quality products. Also, according to the basic principle of elasticity of demand, with the increase in income the consumers move towards normal (good quality) goods. (Ref. - Fundamentals of management by Stephen r. Robbins).
Region- As the high income group people generally resides in sub metropolitan and urban areas, the Samsung's LCD TV market is mainly concentrating in these regions.
Lifestyle - This market targets people with luxurious lifestyle, having high public status, looking for most advanced technology and stylish look. Cost is generally not a matter for them however the quality is. These are the 'Fashionista's'. They want everything first. And that is the reason Samsung always make an effort to be the first in bringing out new products.
For family looking at, easy to keep, better quality
Upper middle class to top quality families
High social status, well aware of latest technology, looking for luxury
Good income, quality oriented, good interpersonal status
Latest technology, expensive, look, size, quality
The closest competition to Samsung in TELEVISION market is Sony with 19% market show (Samsung 30%). Sony is known because of its technology and quality and for that reason is the toughest rival of Samsung. Sony's focusing on customers who are hardcore technology buffs, whereas Samsung's marketplace is consumers who are fashion and style addicts. Sony was actually the first company which includes started out the LCD Television sets. The strong area of Sony, where it has an advantage over other brands, is its brand image and sound technology.
The 2nd competition in terms of market show is LG with 16% market share of LCD Television sets. LG is a Korean company that was founded in the year 1958 by the name of Goldstar. Company's has generated its brand image as "Stylish design and smart technology, in products that fit our consumer's lives. " It really is having a huge variety of electric consumer goods. LG with a solid consumer base in India in digital goods market is constantly seeking to increase its market show in TELEVISION segment and therefore was the first one to launch 19' LCD on the market to attract the center income group. (Ref. - www. lg. com)
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Videocon has also become a strong competition of Samsung in TELEVISION market. Videocon has revamped itself completely with a fresh logo design and brand image. It possessed started in the year 1984 by Dhoot family. Today it offers strong presence in electric durable goods. Videocon being an Indian brand has psychological touch with Indian consumers. Its technology and a stimulating look is again getting consumers trust. The region where it is lacking behind Samsung is its product looks and quality where it still has to improve. (Ref. - videoconworld. com)
There are various factors which customers look for before buying something. You can find tangible factors and intangible factors:
Size - The LCDs can be found in various sizes. A customer look the one which best suits his physical space (home, shop, office, restaurant, etc. ). Therefore the LCD TVs can be purchased in large number of sizes varying from 19'-55'.
Price - The most important factor in deciding which Tv set to buy. The consumer's psychology is to choose the best product in most affordable price and for that reason, discount rates, additional offers, freebies, etc. plays a very decisive role in choosing something. And that's the reason; to lure more and more customers the companies always announces some or other offers on their products.
Color- In early on days this is not really a parameter the maximum amount of color options weren't available only. But today a variety of color options are present. Consumers have grown to be very specific about the color.
Look- 'Is it sleek or not?' is what is in pattern. The LCD should go with the interiors of the area. Therefore, the shape and size have grown to be very important factors. Which is one the factor on which companies having fierce competition. Even brands showcase their shape as their USP. Therefore, all the LCDs present in the marketplace are upon this line only, smooth and smart. The best advantage of being sleek is the less requirement of space to keep it and ease of mobility.
Features - no. of channels, compatibility with other devices, hi-def pictures, color contrast ratio are several things which consumer look at before buying the LCD. Few of the latest features are cordless AV website link, USB compatibility, smart energy cost savings, inbuilt STP pack, energy meter, eco perspective, etc.
Brand - Today's consumer is very brand conscious and brand dedicated as well. The brand image is one of the major travelling pushes in deciding which LCD to buy and which never to. As it pertains to buy expensive products consumers always prefers to choose the most trusted brand. Therefore, every company attempts to give best service to the clients to gain their trust and commitment.
Occasions - Festivities in India are incredibly important for companies as the sales of the products improves many folds during festive conditions. Situations like Diwali, Dusshera, navratre, etc. are several important festivals when consumers do searching for products like LCD Tv sets.
Brand commitment - This is actually the factor which every company will pay high attention. More often than not consumers go by the brand it loves the most for any particular reasons. For e. g. : a Sony brand dedicated consumer, who's a technology buff, will buy only Sony LCD TV whatever the cost may be.
Word of oral cavity - A very popular mode of marketing which will make consumers to choose which LCD TV to buy. Consumers get easily affected if others praise a specific product more than the other. Most Indian consumers generally take advice of several people before buying an expensive product like LCD TV and go with the majority.
SonyPerceptual map: On top of Technology
High on style
High on features
High on product range
The perceptual map above is based on the technology, style, product feature and product range. Sony has concentrated more on scientific aspect. Therefore, its target market is also the section that technology is of excellent concern. It lacks on the variety part as it isn't having huge range in LCDTVs as compared to Samsung and Videocon. Alternatively, Samsung, LG and Videocon have targeted customers based on style and looks. LG also lacked behind in terms of product range but these three have tried to distinguish one another in terms of product features. Videocon has revamped its image to a far more radiant, young and strong in nature. It offers introduced a huge range in TELEVISION to cater to all the portion of consumers with quite competitive price range. Samsung as known because of its looks and features also has huge range in LCD Tv sets.
Conclusion: The TELEVISION market keeps growing leaps and bounds in India. India has turned into a very high potential market for LCD Televisions and therefore each company is wanting to help make the most from it. Presently India is ranked as the third largest tv market in the global front. The competition is fierce and because of this consumers are getting finest technology and huge variety to choose from. On the maker part, to increase their market talk about they are trying every bit to meet the customers by giving best technology and features at most affordable prices.
Recommendations: Due to the costly technology and high expenditure on R &D the LCD Tv sets remain out of reach of public for their price range. As a significant part of your population is middle class, the companies must make the LCD Televisions less expensive, may maintain the price range of 10k-12k to make it popular among this school. Large part of the people resides in sub-urban and rural areas and has huge potential to tap faraway from. Therefore, the firms must make ways of enter this segment.
With the admittance of LED Televisions and 3D TVs the rates of LCD Television sets may land, but it will hugely depend after the success of the new entrants.