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2. BRIEF HISTORY

3. INDIAN TV INDUSTRY-FACTSHEET India is one of the largest TV markets in terms of viewership Technology driven industry- Companies need to constantly improvise, innovate & customize their products Television is the mainstay of the consumer electronics industry in India. CTV production expected to grow at 10% as healthy demand projected during 2010-11: CMIE

4. INDIAN TV INDUSTRY-FACTSHEET …contd. Quantitative & qualitative change in TV technology and software With the advent of several local and foreign satellite channels, demand for CTVs has seen a rise. Shift from joint family system to that of nuclear families. Sale of TVs also tends to be event driven (the Cricket World Cup in 1999, CTV sales recorded a phenomenal rise of 40-50%) Strong brand differentiation and prices (industry has products available at different price points at all levels) MNCs & domestic companies are now making India as a manufacturing centre (Low cost skilled labour, tax free zones i.e. SEZs, Qualified workforce)

6. Competition with LG has led Samsung to play price game

8. Market Leader- Videocon Videocon, an Indian multinational, is the market leader in television industry. An annual turnover of US$ 4.1 billion, making it one of the largest consumer electronics

9. Market Share Market share, in strategic management and marketing is, according to Carlton O'Neal, the percentage or proportion of the total available market or market segment that is being serviced by a company. It can be expressed as a company's sales revenue (from that market) divided by the total sales revenue available in that market.

10. Market Share Of Individual Firm’s In Television Industry

11. Degree Of Concentration for Television Industry Herfindahl Index (H)is the method of estimating the degree of concentration in an industry. The HHI potentially reflects both the number of firms in the market and their relative size (H) is the sum of the squared values of the market shares of all the firms in the Industry. HHI lies between 0 and 1. Higher the Herfindahl Index , the greater is the degree of concentration in the industry Herfindahl Index Of Concentration for Television Industry is 0.193 Perfect competition has the value zero, while monopoly has the value one

12. Hirschman-Herfindahl Index 2010 The value of HHI in Television industry is less than 0.25 for all the years. In earlier decades, competition was fierce, while now, market structure is more of competitive in nature. However , competitive market structure is hard to find in its true sense. Thus, we consider Television market to be monopolistically competitive market structure.

13. Market Structure Due to few major market players, and HHI ( Herfindahl Index of Concentration ) index lower than 0.25 (0.193) Indian market for CTV (color television) is Monopolistic Competitive in nature.

15. The sellers are the price makers and not price takers, since the few sellers mutually dominate the pricing decisions.

18. Ranging from 42 to 56 inches on average, consume more power than LCD televisions of the same size

19. Price ranging from 50,000-4,00,000 only

20. Luxury nature.

21. LCD

22. Sizes from 15 to 55 inches. With lower costs and a wide array of sizes.

23. Price ranging from 15,000-125000 only

24. Lower Price band is normal and Upper price band is luxury

25. Ultra slim

26. Compact CRT, which make it 20% slimmer than conventional.

27. Price ranging from 7,000-15000 only

29. Suits the budget, and a conventional with feel of elegancy due to flat screen

30. Price ranging from 6,000-10000 only

31. Normal Price band

32. Conventional

33. Normal TV

34. Price ranging from 5,000-8000 only

36. Forces acting on TV Industry

38. Upgraded from Black and White TV to Color television

39. Constitutes approximately 62% of the market

40. FIRST TIME BUYERS

41. Comprise 18 per cent of the market.

42. Primarily belong to nuclear families.

43. The structure of these families is either DINK or SINK

44. MULTIPLE SET PURCHASERS

45. Comprise the lowest share of the market in terms of volume with just 8% set.

46. REPLACEMENT PURCHASERS

47. This segment usually trades in its old CTV for the new models.

48. Around 12% of the market

49. Holds immense potential in the future.

52. Quality - Yet an issue

53. After Sale Service & Customer Satisfaction

55. Need to be more quality conscious

56. Need to improve After Sales Services

57. Need to Build economies of Scale

58. Explore exports as a viable option.