The Marketing mix of Videocon analyses the 4Ps of Videocon, including Product, Price, Place, and Promotions. Videocon is an Indian Public limited company that deals in various diversified products. Founded in 1979 by Venugopal Dhoot, it has its headquarters in Mumbai, India. To pace itself with changing times, the company has regularly introduced products better equipped with the latest technologies. Some of the rival business companies of Videocon are as follows-
- Samsung
- Sony
- Panasonic
- LG
- Blue Star
- IFB
- Voltas
- Godrej
About Videocon
- Type: Conglomerate
- Industry: Consumer electronics
- Founder: Venugopal Dhoot
- Headquarters: Mumbai, India
- Area served: India
- Number of employees: 20,000+
Table of Contents
Videocon Product Strategy
Videocon, a prominent Indian company and a large conglomerate has traditionally been involved in various business sectors.
The new Product Mix of Videocon in 2023 is as follows (Source).
- Consumer Electronics and Home Appliances: Videocon has been well-known for its range of televisions, washing machines, air conditioners, refrigerators, microwave ovens, and other home appliances.
- Mobile Phones: They have produced a variety of mobile phones, including feature phones and smartphones.
- Oil and Gas: Videocon Industries has had operations in the oil and gas sector, involving exploration and production.
- DTH (Direct-to-Home) Services: Videocon has provided DTH television services in India.
- Retail: The company has had interests in the retail sector, with large format stores offering a wide range of products.
Videocon Place Strategy
Videocon has seventeen manufacturing plants and manufacturing units in India, Mexico, Italy, Poland, and China. The company has established an organized networking channel that will enable it to handle its distribution policies successfully and quickly. It provides one of the world’s largest networking sites for its product sales and service section.
Warehouses are at strategic locations to ensure quick deliveries of products. Efficient work managers systemically control the route from the manufacturing plant to the consumer to provide maximum results.
Videocon firmly believes in retail sales and has opened its retail chains Digiworld, Videocon Plaza, and DigiHome. Videocon Plaza, with its numerous outlets in all the important cities, ensures easy availability of Videocon products to the customers. Digiworld is an outlet that operates as a multi-brand store where products of different brands, including brands of Videocon, can be purchased.
Digihome is an extended version of the Digiworld chain but on a small-scale basis. The company sets up Training Academies to enhance its engineers’ soft and technical skills. The company has set hubs for spare parts at numerous convenient points to provide efficient and better after-sales services.
Here’s the place strategy of Videocon.
- Extensive Distribution Network: Videocon has historically leveraged a vast distribution network, including urban and rural areas, ensuring their products are available across diverse markets in India. This network includes authorized dealers, retail stores, and exclusive brand outlets.
- Partnerships with Retail Giants: The company has formed partnerships with major retail chains and online marketplaces, enabling them to reach a broader customer base and offer convenient purchasing options for their electronics and appliances.
- Global Presence: Beyond its strong domestic market, Videocon has expanded internationally, establishing a presence in markets such as the Middle East, Southeast Asia, and Europe, adapting its strategies to fit local consumer preferences and regulations.
- Service Centers and After-sales Support: Videocon significantly emphasizes after-sales service, with numerous service centers spread across its operational regions. This approach boosts customer satisfaction and reinforces brand loyalty and trust.
- Utilization of E-commerce Platforms: Recognizing the growing importance of digital sales channels, Videocon has increasingly utilized e-commerce platforms for product sales, providing customers with the convenience of online shopping and home delivery. This strategy aligns with the global shift towards online consumerism.
Videocon Pricing Strategy
As Videocon deals in a wide range of other brands of products catering to an even more comprehensive section of society, its pricing policies differ for its product ranges. For household items, including durable goods, it has tried a penetration pricing policy where the prices are lower to ensure affordability to consumers.
The company has adopted a vigorous penetration policy towards its rural market, keeping all the prices within nominal ranges. This is to capture the untapped rural consumers by providing better quality goods at low and realistic prices. Videocon has successfully offered qualitative products at fair prices in many countries.
Consumers have identified themselves with this brand as they realize that the company’s value-added pricing policies have helped them get better goods with the latest technology at very minimum price ranges. The company has kept its prices below those of its competitors in the urban and marketplace. The difference is nominal, but it ensures a steady consumer base that generates higher revenues because of higher sales figures.
With its astute pricing strategies, Videocon has positioned itself in the competitive consumer electronics and home appliances market. Here’s an overview of their pricing strategy, articulated from a marketing expert’s perspective:
- Value-Based Pricing: Central to Videocon’s pricing strategy is the concept of value-based pricing. They meticulously analyze consumer perceptions and needs, setting prices that reflect the perceived value of their products. This approach aligns with their objective of delivering quality and innovation at prices that resonate with their target market.
- Competitive Pricing: Videocon employs competitive pricing to maintain its market position in a market teeming with domestic and international players. By closely monitoring competitors’ pricing strategies, Videocon adjusts its prices to offer better value, ensuring it remains a preferred choice among cost-conscious consumers.
- Cost-Plus Pricing: Videocon also employs cost-plus pricing to safeguard its bottom line. This involves adding a standard markup to the cost of production, ensuring profitability while keeping prices fair. This strategy is particularly relevant in segments where production costs fluctuate, like electronics.
- Psychological Pricing: Videocon understands the psychological impact of pricing on consumer behavior. They often use tactics like pricing products slightly below a round number (e.g., ?9,999 instead of ?10,000) to make the price appear significantly lower, enhancing its appeal to price-sensitive customers.
- Promotional Pricing: Videocon frequently uses promotional pricing strategies, such as discounts, seasonal offers, and bundling, to boost sales and clear inventory. These tactics are particularly evident during festive seasons and major sales events, where they capitalize on increased consumer spending tendencies.
Videocon Promotion Strategy
Videocon has been launching its new products continuously to maintain and gain new consumers. The company has the distinction of launching 3D sets of televisions and washing machines with tilt drum facilities. The company has hired female promoters to create and sell its newer range of five lines of washing machines as it believes that female promoters will help homemakers understand the products better. It has also announced various schemes to promote its product portfolio.
For instance, if a Videocon LCD Satellite is purchased, the customer will get an added benefit of INR 20,000 by receiving two years of free videocon d2h call services, accompanied by a money-back scheme. The company has a toll-free number, 2-2-2, where quick responses to all queries are the everyday norm. Videocon has service vans equipped with spare parts and tools for providing services at strategic points.
The company organizes free camps at regular intervals to understand and solve consumer problems. It also provides special offers that involve exchanging new products with older ones at minimum prices, discount coupons, discounts on accessories and spare parts, free services for a limited period, and even annual contracts for maintenance. In its brand makeover, Videocon has created a new logo with “V” engraved to represent a new and fresh identity.
Videocon marketing strategy encompasses a comprehensive approach to maximizing brand visibility and market penetration. Leveraging innovative advertising tactics such as a videocon marketing strategy, the company strategically targets major cities, utilizing diverse distribution channels to ensure the widespread availability of its telecom products. With a product line depth that caters to varying consumer needs, Videocon employs personal selling techniques to communicate its offerings’ value proposition effectively.
This is to deal with the changing times by developing better and more innovative ideas. Videocon has created fresh promotional advertisements on every television, radio, and billboard. It has Gippy Grewal, a Punjabi singer, as its brand ambassador for Videocon Telecom, whereas actor Abhishekh Bacchan was the ambassador for Videocon d2h, from whom Parineeti Chopra has taken over. Shahrukh Khan has been the brand ambassador for Videocon home appliances for over a decade.
Some Recent Video ads and Print ads for Videocon are:
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