DECLARATION BY THE CANDIDATE

I hereby declare that the work, which is being presented in this project, entitled “Advent
of LCD TVs and their future prospects in India” is an authentic record of my own work
carried out by me under the supervision and guidance of Mr. S.Thiyagarajan, Project
Guide, BHAI PARMANAND INSTITUTE OF BUSINESS STUDIES, Shakarpur, Delhi.

This project was undertaken as a part of the Summer Training Project as per the
curriculum of “Guru Gobind Singh Indraprastha University, Delhi” for the partial
fulfillment of MBA from “Bhai Parmanand Institute of Business Studies, Shakarpur”.

I have not submitted the matter embodied here in this project for the award of any other
degree/diploma.

ASHUTOSH FOTEDAR
ROLL NO. 0031143908
M.B.A., THIRD SEMESTER
BHAI PARMANAND INSTITUTE
OF BUSINESS STUDIES,
SHAKARPUR, DELHI

1
 CERTIFICATE

This is to certify that Mr. Ashutosh Fotedar Roll No. 0031143908, Student of MBA-
IIIrd Semester, has satisfactorily completed his Project Research Title- “Advent of LCD
TVs and their future prospects in India” as a part of Summer Training Project under
my guidance for the partial fulfillment of M.B.A degree under Guru Gobind Singh
Indraprastha University, Delhi for the year 2009-10.

Mr. S.THIYAGARAJAN
[MBA- IN- CHARGE]
BPIBS, SHAKARPUR

2
 ACKNOWLEDGEMENT

The project entitled “Advent of LCD TVs and their future prospects in India” was a
challenging assignment for me and required an improved environment, extensive
endeavor and all necessary support. I take this opportunity to express my gratitude to
Mr. Vijay Sharma and Mr. S. Thiyagarajan my Project Guide on behalf of the company
and college respectively for their able guidance, cooperation and out of box thinking
without which this project would not have been exciting at all.

The successful progression of my project also gives me the opportunity to acknowledge

and appreciate the staff of the organization as well as of the college that provided me
much needed stimulating suggestions and encouragement in order to steer this project
towards completion.

Ashutosh Fotedar

3
 EXECUTIVE SUMMARY

India has an increasingly affluent middle class population that, on the back of rapid
economic growth, has made the country’s consumer electronics industry highly dynamic.
The industry has been witnessing significant growth in recent years due to several factors,
such as retail boom, growing disposable income and availability of easy finance schemes.
But still, the consumer electronics goods, like refrigerators, microwave and washing
machines have low penetration in the country, representing vast room for future growth.
Television continues to be the mainstay of the consumer electronics industry in India with
the transition slowly occurring to newer technologies such as LCD and PDP. This is
attracting many foreign majors to the country.

Keeping the above fact in mind, the present report is prepared to formulate a marketing
strategy for increasing the market share of the company in case of the sale of LCD TVs.
To find out the reasons influencing the minds of the common man a marketing research
was carried out by me.

The exploratory research was carried out with 50 respondents with a set of 20 open and
close ended questions. The survey was conducted by me by visiting 50 dealers of
consumer electronics in North Delhi region.

The exploratory findings helped me in determining the key factors which needed to be
further explored for making the marketing strategy for my company. Each of the
questions was designed to satisfy at least one of the secondary objectives of the research.
The response format was of a mixed variety which also helped in better determination of
outcomes.

4
 CONTENTS

Chapter No S.No Topic Page No

1 Consumer Electronics Industry 06
1.1 Worldwide Consumer Electronics Industry 07
1.2 Indian Consumer Electronics Industry 09
1.3 Trends in Indian Consumer Electronics Industry 13
1.4 Competition Overview 15
1.5 Policy and Initiatives 17
1.6 Challenges and Opportunities 21
2 Company Profile 23
2.1 Introduction 24
2.2 Vision 25
2.3 Key People 25
2.4 Future Goals 26
3 Essential Theory 28
3.1 Liquid Crystal Display Television 29
3.2 Marketing Mix 39
3.3 Branding Process 47
3.4 Consumer Decision Process 75
4 Research Report 79
5 Data Analysis and Interpretation 82
6 Observations and Findings 98
7 Conclusion and Strategy 100
7.1 Conclusion 101
7.2 Proposed Marketing Strategy 101
8 Bibliography 105
9 Annexure 107

5
 CHAPTER - 1
CONSUMER ELECTRONICS INDUSTRY

1.1 Worldwide Consumer Electronics Industry

The consumer electronics industry is a global business. In recent years, the consumer
electronics industry is in the midst of a new wave of change, witnessing a phenomenal
growth. It is ushering in a dawn of convergence, of technologies, products and markets.
Consumer electronics appliances such as digital televisions, portable media players and
educational toys are in a state of constant flux. The convergence of digital-based audio,
video and information technology is a major reason. These changes began nearly two
decades ago and have resulted in an avalanche of state of the art electronic devices in the

6
market. The demand for a multitude of portable, in-home or in-car consumer electronic
items with multiple functions has increased tremendously.

Digitalization, miniaturization and mobility are the key elements for modern consumer
electronic products. Digitalization transformed the consumer electronics sector,
delivering new and exciting entertainment products that have changed the way we live. It
paved the way for digital devices such as camcorders, DVD player/recorder, still camera,
computer monitor and LCD TV. It has also witnessed the emergence of mobile
telecommunications technology, incorporating both digital visual and digital MP3
capabilities. The computer industry has also benefited, making its way into the family
living room. HDTV’s with VGA connections and SD/MMC card slots, personal media
players, Microsoft-based Media Centre PCs have pushed the two industries even closer
together than before. Miniaturization also accelerates the growth of the consumer
electronics industry.

Global consumer electronic sales are expected to top $724 billion this year, according to
the Consumer Electronics Association. While sales grew 13.7% to $694 billion in 2008,
this year’s growth will only be 4.3%. Still with the economy in a downturn, consumer
confidence at lows and consumer electronics companies suffering, any growth is sure to
be welcome.

The slowdown in 2009 is expected to affect products virtually across the board, from
mobile phones to televisions to computers. Mobile phones accounted for 26.7 percent of
total revenue last year but sales are expected to slow in 2009, the CEA forecast, growing
by just 2.1 percent this year over last year to 1.2 billion units. Mobile phone sales grew by
13 percent in 2008 and by 15.4 percent in 2007. The CEA said that although mobile
phone growth was expected to slow "the macro trend of work, play and communicate
anywhere, anytime will continue to drive innovation and CE sales."
Television sales are expected to grow by 2.6 percent in 2009 to 232 million units, down
from the 10.5 percent and 9.1 percent growth rates of the previous two years. “Liquid
crystal displays will grow slower in 2009 but will still achieve double digit unit and

7
revenue growth worldwide," the CEA said. "Plasma displays are forecast to achieve
positive unit growth and negative revenue growth." The CEA's 2009 outlook for
computer sales is somewhat better, with growth forecast at 8.2 percent over 2008 but still
a significant drop from the 17.8 percent growth of last year. "Laptop PCs are expected to
continue to generate double digit increases in units and revenue in 2009," the CEA said.
"Desktops will experience declines in both units and revenue." The ratio of laptop PC
sales to desktop PC sales is expected to continue to widen this year with 63 percent of the
computers sold in 2009 expected to be laptops, the CEA said. It said that in 2005, the
ratio of desktop PC unit sales to laptop PC unit sales was 58 percent to 42 percent. The
CEA said MP3/digital media players were expected to generate "strong sales" in 2009
along with portable navigation GPS units. "Unit sales of portable navigation grew 55
percent in 2008 and are expected to grow another 22 percent in 2009," the CEA said.It
said the game console market is expected to grow by 5.4 percent in units and 1.1 percent
in revenue in 2009. Blu-ray DVD sales were expected to nearly double in both unit sales
and revenue in 2009, the CEA said, with North America accounting for the largest
percentage of Blu-ray sales followed by Western Europe and Japan.
The CEA said emerging powers China, Russia, Brazil and India now account for nearly
one-fourth of worldwide consumer electronics revenue (24 percent) while North America
and Western Europe combined account for 37.7 percent.
As for trends to watch this year, the trade association said to expect products that were
environmentally friendly in terms of the materials used, packaging, energy efficiency and
recycling potential. The trade association said the trend towards "no strings attached"
wireless devices would accelerate along with increased touch screen and voice activation
technology.

Fundamentally, the changes in the consumer electronics industry are not being driven by
product evolution, but by fluctuations in the industry's business models. Companies that
are capable of change and those that develop branding will be most successful.

Consumer electronics companies producing computers, televisions, DVD players and

other household electronics face the same challenges as other consumer goods

8
 companies. The lifecycle of consumer electronics products is shrinking along with severe
price deflation, a factor that makes demand, pricing and promotions management even
more challenging. Innovation, differentiation and flexibility are critical to a company’s
survival in the consumer electronics market. The rapidly falling prices and improved
functionality provided by convergence are influential forces behind the growing
consumer demand for electronic items.

The Asia Pacific region is the market leader wielding the biggest chunk of the market,
closely followed by Europe. The European market share is expected to take a drubbing
due to the growing demand for consumer durables in the Asia Pacific consumer
electronic market. Japanese companies have captured the consumer electronics market.
World famous brands such as Sony, Panasonic and Matsushita are all owned by these
Japanese manufacturers. Korean companies such as Samsung and LG are all trying to join
the Japanese bandwagon. Samsung can claim to be the world's fastest growing electronic
company.

1.2 Indian Consumer Electronics Industry

India has an increasingly affluent middle class population that, on the back of rapid
economic growth, has made the country’s consumer electronics industry highly dynamic.
The growth is aided by a multitude of factors, including:
1. Growing consumer confidence due to rising disposable incomes;
2. Easy financing schemes that are making purchases possible;
3. Increased local manufacturing;
4. Expanding distribution networks;

9
 Growth of Consumer Electronics Production in India

15.2 16.8 18
18
13.8
16
11.9 12.7
14
12
10
Rs billion
8
Rs billion
6
4
2
0
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06
Year

In consonance with the global trend, over the years, demand for consumer durables has
increased with rising income levels, double-income families, changing lifestyles,
availability of credit, increasing consumer awareness and introduction of new models.
Products like air conditioners are no longer perceived as luxury products. One of the
critical factors those influences durable demand is the government spending on
infrastructure, especially the rural electrification program. Given the government's
inclination to cut back spending, rural electrification programs have always lagged behind
schedule. This has not favoured durable companies till now. Any incremental spending in
infrastructure and electrification programs could spur growth of the industry.

The figure presents iSuppli's estimates and projections for the size of the Indian
audio/video consumer electronics industry for the period of 2004 to 2011.

10
The consumer electronics market is one of the largest segments in the electronics industry
in India. With a market size of Rs.15, 897.13 crore ($3.89 billion) in 2006, catering to a
population of more than 100 crore people, the consumer electronics industry in India is
poised for strong growth in the years to come. ISuppli Corp. predicts the Indian
audio/video consumer electronics industry will grow to Rs.26, 931.13 crore ($6.59
billion) by 2011, rising at a Compound Annual Growth Rate (CAGR) of 10.0 per cent
from Rs.18, 390 crore ($4.5 billion) in 2007.
Television continues to be the mainstay of the consumer electronics industry in India with
the transition slowly occurring to newer technologies such as LCD and PDP.
Most players in the consumer-electronics industry have introduced products in the FPD
segment, and for few companies, especially the Korean chaebols, FPD remains a focus
area.
Companies are focusing on customizing products to suit Indian tastes, thereby creating a
niche for themselves. Several companies are conducting market research in order to
understand the psyche of an Indian consumer. The inputs from this research are
determining product attributes and pricing and accordingly are achieving better
acceptance among consumers.
By conducting consumer research, companies are trying to identify customer
requirements, thereby incorporating specific design elements into their products. For
example, LG in 2006 launched a range of TVs from 21 inches to 29 inches in size that
were designed based on the company's research on consumer preferences for television

11
sets. In order to tap semi-urban and rural demand, companies are expanding their
distribution networks in these areas. The move has positively impacted sales for
companies opting for rural expansion. However, rural consumers have not been as brand-
conscious as their urban counterparts. Due to the lower prices of unbranded products,
rural consumers have been inclined to buy these products, although they often have poor
quality. As the awareness among rural consumers rises, they are expected to show a
preference for branded products. This is reflected by the fact that established players are
reporting higher sales of products in rural areas.
ISuppli expects domestic manufacturing to be a key characteristic of this growth in the
years to come.

Although electronics production has remained a miniscule portion of overall Indian

manufacturing for a long time, the trend is gradually changing. The government has been
focusing increasingly on developing the manufacturing sector by developing
infrastructure, rationalizing duties and creating export-promotion zones. This is in
alignment with India figuring into the plans of several companies that want to cater to the
domestic and export markets. Domestic consumption is reaching significant size to
trigger manufacturing in the electronics sector. India also is assuming a significant place
in the global plans of several major electronics manufacturers, thereby positioning it also
as an export base. Furthermore, fabless companies are suitable to cater to such
development because they can assist in moving the industry up the value chain by
creating design-service opportunities for the Indian market.
EMS and ODM companies in India have been associated with several design companies,
although such relationships represent an extension of their global relationships. However,
some local partnerships also are appearing, such as Flextronics' deal with in Silica for the
development of SOC devices. Currently, such instances are few and far between. As the
local market gains size, these associations will become more common.

12
1.3 Trends in Indian Consumer Electronics Industry

RNCOS research report finds that since the penetration of several products like TVs and
refrigerators are reaching saturation in the urban areas, the markets for these products are
shifting to the semi-urban and rural areas.

This analytical research thoroughly evaluates the Indian consumer electronics industry. It
briefly discusses about the current and emerging trends in the industry, underlining the
future potential areas and key issues crucial for the industry development.

'Booming Consumer Electronics Market in India” offers extensive research on various

consumer electronics products that are broadly classified as home appliances, audio/video
appliances, mobile handsets, and PC market. It provides an insight into the emerging and
potential future trend in all the categories and highlights the key strategies that need to be
worked upon to get success in the highly competitive industry.

The report thoroughly analyzes the historic performance and future prospects, offering 4-
year industry forecast, of following consumer electronics products:

- Washing Machines (Semi-automatic & Fully Automatic)

- Television
- Set-top Box
- Refrigerator (Frost-free & Direct Cool)
- Air Conditioner
- Microwave Oven
- MP3 Players
- Digital Camera & Camcorder
- Mobile Handsets
- PCs (Desktop & Notebook)

13
Key Research Findings:

- Propelled by growing middle class population, changing lifestyle and rapid

urbanization, the Indian consumer electronics industry is forecasted to grow at a rapid
rate of 10% to 12% in the coming few years.

- Volume sales of washing machine will be driven by growth in fully automatic category
during 2008-09 to 2011-12.

- The market for televisions in India is changing rapidly from the conventional CRT
technology to Flat Panel Display Televisions (FPTV). Currently, the split between CRT
and FPTV is around 97% and 3% respectively, and the share of FPTV is projected to
increase at robust rate in near future.

- Frost-free refrigerator sales, certainly growing at a much faster pace than the direct-cool
category, are anticipated to drive the Indian refrigerators market over the forecast
period.

- The AC market in India is projected to grow at 30% to 35% for the coming few years.

- Driven by young population, demand for MP3 players and digital video appliances are
anticipated to surge at double-digit rate in near future.

- The low penetration level of consumer electronics goods coupled with increasing
preference for comfort and luxurious goods are widely attracting the foreign as well as
domestic players to the industry.

14
1.4 Competition Overview
Samsung India

Samsung India commenced its operations in India in December 1995, today enjoys a
sales turnover of over US$ 1 billion in just a decade of operations in the country.
Samsung design centers are located in London, Los Angeles, San Francisco, Tokyo,
Shanghai and Romen. Samsung India has its headquartered in New Delhi and has a
network of 19 Branch Offices located all over the country. The Samsung manufacturing
complex housing manufacturing facilities for Colour Televisions, Colour Monitors,
Refrigerators and Washing Machines is located at Noida, near Delhi. Samsung ‘Made in
India’ products like Colour Televisions, Colour Monitors and Refrigerators are being
exported to Middle East, CIS and SAARC countries from its Noida manufacturing
complex. Samsung India currently employs over 1600 employees, with around 18% of its
employees working in Research & Development.

Whirlpool of India

Whirlpool was established in 1911 as first commercial manufacturer of motorized

washers to the current market position of being world's number one manufacturer and
marketer of major home appliances. The parent company is headquartered at Benton
Harbor, Michigan, USA with a global presence in over 170 countries and manufacturing
operation in 13 countries with 11 major brand names such as Whirlpool, Kitchen Aid,
Roper, Estate, Bauknecht, Laden and Ignis. Today, Whirlpool is the most recognized
brand in home appliances in India and holds a market share of over 25%. The company
owns three state-of-the-art manufacturing facilities at Faridabad, Pondicherry and Pune.
In the year ending in March '06, the annual turnover of the company for its Indian
enterprise was Rs.1, 375 crores. According to IMRB surveys Whirlpool enjoys the status
of the single largest refrigerator and second largest washing machine brand in India.

LG India

LG Electronics was established on October 1, 1958 (As a private Company) and in 1959,
LGE started manufacturing radios, operating 77 subsidiaries around the world with over
72,000 employees worldwide it is one of the major giants in the consumer durable

15
domain worldwide. The company has as many as 27 R & D centers and 5 design centers.
It's global leading products include residential air conditioners, DVD players, CDMA
handsets, home theatre systems and optical storage systems.

Godrej India

Godrej India was established in 1897, the Company was incorporated with limited
liability on March 3, 1932, under the Indian Companies Act, 1913. The Company is one
of the largest privately-held diversified industrial corporations in India. The combined
Sales during the Fiscal Year ended March 31, 2006, amounted to about Rs. 58,000
million (US$ 1,270 million). The Company has a network of 38 Company-owned Retail
Stores, more than 2,200 Wholesale Dealers, and more than 18,000 Retail Outlets. The
Company has Representative Offices in Sharjah (UAE), Nairobi (Kenya), Colombo (Sri
Lanka), Riyadh (Saudi Arabia) and Guangzhou (China-PRC).

Toshiba India

Toshiba India Private Limited (TIPL) is the wholly owned subsidiary of Japanese
Electronic giant Toshiba Corporation and was incorporated in India on September 2001.
Toshiba had a presence in India since 1985 and was represented in India through their
Liaison Office.

Sony India

Sony Corporation, Japan, established its India operations in November 1994. In India,
Sony has its distribution network comprising of over 7000 channel partners, 215 Sony
World and Sony Exclusive outlets and 21 direct branch locations. The company also has
presence across the country with 21 company owned and 172 authorized service centers.

Sharp India Ltd

Sharp India ltd was incorporated in 1985 as Kalyani Telecommunications and

Electronics Pvt Ltd, the company was converted into a public limited company in the
same year. The name was changed to Kalyani Sharp India in 1986. The company was
entered into a joint venture with Sharp Corporation, Japan - a leading manufacturer of

16
 consumer electronic products to manufacture VCRs/VCPs/VTDMs. The company
manufactures consumer electronic goods such as TVs, VCRs, VCPs and audio products.
The products were sold under the Optonica brand name. Sharp has a production base in
26 countries with 33 plants, and its products are used in 133 countries. The company was
accredited with the ISO-9001 certification in the month of February, 2001.

Hitachi India

Hitachi India Ltd (HIL) was established in June 1998 and engaged in marketing and sells
a wide range of products ranging from Power and Industrial Systems, Industrial
Components & Equipment, Air Conditioning & Refrigeration Equipment to International
Procurement of software, materials and components. Some of HIL’s product range
includes Semiconductors and Display Components. It also supports the sale of Plasma
TVs, LCD TVs, LCD Projectors, Smart Boards and DVD Camcorders.

1.5 Policy and Initiatives

Foreign investment up to 100 per cent is possible in the Indian consumer electronics
industry to set up units exclusively for exports. It is now possible to import duty-free all
components and raw materials manufacture products and export it.

EHTP (Electronic Hardware Technology Park) is an initiative to provide benefits to

companies that are replacing certain imports with local manufacturing. EHTP benefits
include export credits, no duties on imported components or capital equipment, business
tax incentives, and an expedited import-export process. The government, in an attempt to
encourage manufacture of electronics in India has changed the tariff structure
significantly.
Customs duty on Information Technology Agreement (ITA-1) items (217 items) has been
abolished from March 2005. All goods required in the manufacture of ITA-1 items are
exempt from customs duty.

17
Customs duty on specified raw materials / inputs used for manufacture of electronic
components or optical fibers / cables has been removed. Customs duty on specified
capital goods used for manufacture of electronic goods have been abolished.
Excise duty on computers has been removed. Microprocessor, hard disc drives, floppy
disc drives and CD ROM drives continue to be exempt from excise duty.

Intellectual Property Rights

Protection of Intellectual property rights (IPR) is a prime requisite for development of

R&D and innovation in the consumer electronics sector. The Government of India has
developed a robust IP act to facilitate innovation, growth and development.
Several amendments to the Copyright Act, creation of a new Trademark Act, a new
Designs Act and amendments to the Patents Act show India’s continued effort to protect
IPR.

The country has already made several changes in its IP acts over the years.. Several
amendments to the Copyright Act, creation of a new Trademark Act, a new Designs Act
and amendments to the Patents Act show India’s desire to change and adapt. New acts
have also been enacted to cover semiconductors and layout designs which will be of
considerable importance to the electronic industry.

In the current WTO regime, India is a party to the “Trade Related Aspects of the
Intellectual Properties (TRIPs) Agreement” and has accordingly, amended most of its IPR
Acts and Rules to conform to the said Agreement. The Indian Copyright Act 1957 was
amended in 1999; the patent Act 1970 was amended in 1999 & 2003 and
Trademarks and Merchandise Marks Act 1959 was overtaken by a new Trademark Act
1999. The Industrial Design Act 1911 was effectively replaced by The Design Act 2000,
and the Layout Design of Semiconductor integrated Circuit Act 2000 was enacted.
The agreement on TRIPs takes care of the intellectual property rights by enforcing the
patent rights, copy rights and related rights, and the protection of industrial designs, trade
marks, geographical indications, layout designs of integrated circuits and undisclosed
information. Accordingly, the member nations are asked to modify their existing laws.

18
Once these laws come into force, unauthorized use of the patented innovations, trade
marks, etc. becomes difficult. Enforcement of the TRIPs agreement makes the production
of any product possible either through internal innovation or through formal transfer of
technologies.
The consumer electronics and durables sector is expected to continue to benefit from
supportive policies and become globally competitive.

Regulations

1. Free Trade Agreement

WTO regime which came in force in 2005, results in zero customs duty on imports of all
telecom equipment. 217 IT/electronic items were covered under the Information
Technology Agreement (ITA) of the WTO for complete customs tariff elimination by
2005.
Out of these 217 items, several items were already at NIL customs duty. In fact,
IT/electronics was the first sector in India to face complete customs tariff elimination.
The ITA-1 would result in intensifying competition as more imported products will be
easily available at lower prices.

2. Foreign Investment Policy: FDI

Foreign investment up to 100 per cent is allowed in Indian electronics industry set up
exclusively for exports. The units set up under these programs are bonded factories
eligible to import, free of duty, their entire requirements of capital goods, raw materials
and components, spares and consumables, office equipment etc. Deemed export benefits
are available to suppliers of these goods from the Domestic Tariff Area (DTA).
A part of the production from such units is permitted to be sold in the DTA depending
upon the level of the value addition achieved. The FDI approval for electrical equipment
(including computer software and electronics) from January 1991 to March 2004 was
US$ 7.29 billion, which was 9.94 per cent of the total foreign direct investment (FDI)
approved. During the same period the FDI inflow for electrical equipment (including
computer software and electronics) was US$ 3.32 billion.

19
3. Procedure for approval

Once the investment in equity has been approved, the import of capital goods,
components and raw materials or the engagement of foreign technicians for short duration
does not require any additional approvals.
Approval of Ministry of Home Affairs is not needed for hiring foreign nationals holding
valid employment visa.
Approval for setting up units in Export Processing Zones (EPZs) is given by the Board of
Approvals in the Ministry of Commerce.
Approval for setting up export-oriented units (EOUs) outside the zones is given by the
Ministry of Industry.
Approvals for setting up Electronic Hardware Technology Park (EHTP) and Software
Technology Park (STP) units are cleared by the Inter Ministerial Standing Committee
(IMSC) set-up under the Chairmanship of the Secretary, Department of Information
Technology.
Proposals involving foreign direct investment not covered under the automatic route are
considered by the Foreign Investment Promotion Board (FIPB).

4. FDI/ Foreign Technology Collaboration Agreement

The government facilitates FDI and investment from Non- Resident Indians (NRIs)
including Overseas Corporate Bodies (OCBs), predominantly owned by them, to
complement and supplement domestic investment. Foreign technology induction is
encouraged through FDI and foreign technology collaboration agreements. FDI and
foreign technology collaborations are approved through automatic route by the Reserve
Bank of India

20
1.6 Challenges and Opportunities

The Challenges

Heavy taxation in the country is one of the challenges for the players. At its present
structure the total tax incidence in India even now stands at around 25-30 per cent,
whereas the corresponding tariffs in other Asian countries are between 7 and 17 percent.
About 65 per cent of Indian population that lives in its villages still remains relevant for
some consumer durables companies. This India, at least a large proportion of its
constituents, still buys black and white TVs and doesn't know what flat screens are.
Also, foraying into these rural markets has a considerable cost component attached to it.
Companies not only have to set up the basic infrastructure in terms of office space,
manpower, but also spend on transportation for moving inventory. Even LG and
Samsung, which are touted as having the largest distribution network in the country, have
a direct presence only in 15,000 to 18,000 of the around 40,000 retail outlets (for
consumer durables) in the country.
Poor infrastructure is another reason that seems to have held back the industry. Regular
power supply is imperative for any consumer electronics product. But that remains a
major hiccup in India.

ISuppli believes that there are still challenges facing the India consumer electronics
industry as the sector tries to realize its full potential. These include:

1. Declining margins for many players

2. Inverted duty structure
3. Expansion of distribution reach: Infrastructural bottlenecks (roads, power, etc.) have
hindered the reach of the distribution network in India
4. Creating awareness about new technologies and products
5. Low affordability level of consumer products among the rural masses

21
However, these challenges are gradually being addressed. And looking ahead, iSuppli
believes that India will continue to grow as an important market for the global consumer
electronics industry. The future of India's market is indeed bright.

Opportunities

The rising rate of growth of GDP, rising purchasing power of people with higher
propensity to consume with preference for sophisticated brands would provide constant
impetus to growth of white goods industry segment.
Penetration of consumer durables would be deeper in rural India if banks and financial
institutions come out with liberal incentive schemes for the white goods industry
segment, growth in disposable income, improving lifestyles, power availability, low
running cost, and rise in temperatures.
While the consumer durables market is facing a slowdown due to saturation in the urban
market, rural consumers should be provided with easily payable consumer finance
schemes and basic services, after sales services to suit the infrastructure and the existing
amenities like electricity, voltage etc.
Currently, rural consumers purchase their durables from the nearest towns, leading to
increased expenses due to transportation. Purchase necessarily done only during the
harvest, festive and wedding seasons — April to June and October to November in
North India and October to February in the South, believed to be months `good for
buying’, should be converted to routine regular feature from the seasonal character.

22
 CHAPTER-2
Company Profile

2.1 Introduction

23
SNR Electronics Ltd, a Himachal Pradesh based firm, launched the “Markson” brand of
consumer electronics in January 2008.
MARKSON is the long cherished dream of Mr. Sunil Gupta, a dream of reaching out to
the teeming millions and providing them the fruits of modern technology for their
education and entertainment – manufacturing the state-of-the-art electronics products in
India for providing world class quality at affordable prices for the masses.

Markson brand was launched in India in technical collaboration with the UK based
company for designing and technical support of their products. Markson products are
produced in most modern and state-of-the-art plant at Haridwar, Parwanoo & Baddi in
U.K & H.P. The company started operation in early 2008 and in a short period of one
year only, the company has been able to make a pan India presence through a strong
network of more than 100 Distributors, well supported by sales and service professionals
of the company. Quality and affordable prices are the hallmark of Markson.

After-sales-service being the mantra of the brand, the company is in the process of
opening more than 100 service outlets across the country.

The company is headed by highly experienced team of professionals from the electronics
industry who have hands-down experience in the electronics industry and enjoy a high
degree of honesty and reliability among the trade.

The product mix includes LCD TVs, Colour TVs, DVD Players, Home Theatre Systems,
Laptops, TFT Screens, Set-top Boxes and Desktop computers. The company has also
lined up Mobile Phones, Air-Conditioners, Washing Machines and Microwave Ovens,
which will be launched very shortly. The company has launched state-of-the-art wall
mountable DVD Players with auto-sliding door facility, USB Playability with facility to
mount DVD Players on the wall to give a unique look. These features are not available in
any other brand in the country.

The company’s products range has been widely accepted meeting the international

24
 standards in quality and packaging. The LCD TV’s are having unique features like USB
Playback and MMS Playback. LCD TV’s particularly of 26” (66 cms) and 32” (82 cms)
size have been sold more than the expectation leading to a virtual shortage in the market.
The Markson Computer TFT Screens have unique features and inbuilt speakers and with
the aid of external TV Tuner can substitute a LCD TV.

The company, in order to facilitate and expedite the distribution of Markson’s products in
India, has opened 13 branches at state level along with extensive warehousing facilities at
the branches.

2.2 Vision
To reinvent the market trend by bringing in state-of-the-art quality products to consumers
as they have always wanted it. Every single product made at Markson is an epitome of
precision and impeccable quality. We at Markson believe that high quality innovation
isn’t a privilege anymore, it’s an asset, and it’s your right!

2.3 Key People

Mr. Sunil Gupta
CMD, Markson
Mr. Sunil Gupta is the CMD of Markson in India. Mr. Gupta has a hands down
experience in electronics trade. For the last 26 years, his emphasis and special focus has
been on trading of electronic components and assemblies. Since then he has been actively
engaged in arranging and collaborating resources for many wholesale retail outlets in
Delhi which happens to be Asia’s largest electronics trading market.
Mr. Gupta is the promoter of Markson brand in India with focus on manufacturing &
marketing of electronic goods like LCD TV, Color TV, DVD players, Home theatre
systems, Laptops, Desktop computers, TFT screen & Set-top boxes. He also plans to put
more home products into the market by the end of the year like Washing Machines, Air-
Conditioners, Microwave Ovens and Mobile Phone sets. He also plans to venture into the
Hospitality sector around the same time. He has held coveted positions in numerous
electronics associations like, BETA (Bhagirath Electronics Traders Association) and

25
 Central Radio & Electronics Merchant Association. Being a philanthropist to the core,
Mr. Gupta has done a lot of social service for the needy, helping them in whatever
possible way. He has also been actively involved in construction of several dharamshalas
for the needy.

Mr. Sunil Wadhwani

CEO, Markson
Sunil Wadhwani, the CEO of Markson, has an impressive experience of 35 years in the
electronics industry in international trading coupled with domestic marketing and
production related factory processes. He has been an active member of several important
electronic associations in India, namely, CEAMA, ELCINA, and local Customs Advisory
Committee in Delhi and Central Excise Committee in Noida. He has also been an active
member of ESC, a council promoted by the Ministry of Information Technology. Mr.
Wadhwani has travelled extensively all over the world, solely for the procurement of a
spectrum of electronic components and goods, and also for the export of quality
electronic goods from India keeping in view the international standard. Mr. Wadhwani
has spent considerable time in understanding export and import and their intricate
procedures under the Foreign Trade Law. He also has a sound knowledge of Customs and
Central Excise Procedures prescribed under the Customs Act and Central Excise Act.

He received his B.Tech. in Mechanical Engineering from the coveted technical institute,
IIT, Delhi and has been actively engaged in work since then.

2.4 Future Goals

Markson targets revenue of Rs 400 crore by the end of this fiscal and will increase it to
Rs 1,000 crore by 2012 with the introduction of several low cost products. The initial
investment made was Rs 100 crore. Markson is able to provide the products at cheaper
rates as the facilities are located under the excise free zone and the same are passed on to
the end consumers. The company's prime focus will be on Northern and Eastern regions
first and then move on to the Central and Southern regions of the country.

26
With 2,000 dealers and distributors across the country, the company targets to capture
five cent of the television market in the country by the end of this fiscal.
The company, that has an initial advertising budget of Rs five crore, will increase it to Rs
20 crore in the near future.
The company plans to launch washing machine, air-conditioners, refrigerators and
microwave ovens in the next two months.
The company, a member of Consumer Electronics and Appliances Manufacturer
Association (CEAMA), will start registering profit after two years of this venture

27
 CHAPTER- 3
Essential Theory

3.1 Liquid Crystal Display Television

Liquid-crystal display televisions (LCD TV) are color television sets that use LCD
technology to produce images. LCD televisions are thinner and lighter than CRTs of

28
similar display size, and are available in much larger sizes as well. This combination of
features made LCDs more practical than CRTs for many roles, and as manufacturing
costs fell their eventual dominance of the television market was all but guaranteed.

Description

Basic LCD Concepts:

LCD televisions produce a colored image by selectively filtering a white light. The light
is typically provided by a series of cold cathode fluorescent lamps (CCFLs) at the back of
the screen, although some displays use white or colored LEDs instead. Millions of
individual LCD shutters arranged in a grid, open and close to allow a metered amount of
the white light through. Each shutter is paired with a colored filter to remove all but the
red, green or blue (RGB) portion of the light from the original white source. Each
shutter–filter pair forms a single sub-pixel. The sub-pixels are so small that when the
display is viewed from even a short distance, the individual colors blend together to
produce a single spot of color, a pixel. The shade of color is controlled by changing the
relative intensity of the light passing through the sub-pixels.
Liquid crystals encompass a wide range of (typically) rod-shaped polymers that naturally
form into thin layers, as opposed to the more random alignment of a normal liquid. Some
of these, the pneumatic liquid crystals, also show an alignment effect between the layers.
The particular direction of the alignment of a pneumatic liquid crystal can be set by
placing it in contact with an alignment layer or director, which is essentially a material
with microscopic groves in it. When placed on a director, the layer in contact will align
itself with the grooves, and the layers above will subsequently align themselves with the
layers below, the bulk material taking on the director's alignment. In the case of an LCD,
this effect is utilized by using two directors arranged at right angles and placed close
together with the liquid crystal between them. This forces the layers to align themselves
in two directions, creating a twisted structure with each layer aligned at a slightly
different angle to the ones on either side.
LCD shutters consist of a stack of three primary elements. On the bottom and top of the
shutter are polarizer plates set at (typically) right angles. Normally light cannot travel
through a pair of polarizers arranged in this fashion, and the display would be black. The

29
polarizers also carry the directors to create the twisted structure aligned with the
polarizers on either side. As the light flows out of the rear polarizer, it will naturally
follow the liquid crystal's twist, exiting the front of the liquid crystal having been rotated
through the correct angle that allows it to pass through the front polarizer. LCDs are
normally transparent.
To turn a shutter off, an electrical voltage is applied across it from front to back. When
this happens, the rod-shaped molecules align themselves with the electric field instead of
the directors, destroying the twisted structure. The light no longer changes polarization as
it flows through the liquid crystal, and can no longer pass through the front polarizer. By
controlling the voltage applied across the crystal, the amount of remaining twist can be
finely selected. This allows the transparency or opacity of the shutter to be accurately
controlled. In order to improve switching time, the cells are placed under pressure, which
increases the force to re-align themselves with the directors when the field is turned off.
Several other variations and modifications have been used in order to improve
performance in certain applications. In-Plane Switching displays (IPS and S-IPS) offer
wider viewing angles and better color reproduction, but are more difficult to construct
and have slightly slower response times. IPS displays are used primarily for computer
monitors. Vertical Alignment (VA, S-PVA and MVA) offer higher contrast ratios and
good response times, but suffer from color shifting when viewed from the side. In
general, all of these displays work in a similar fashion by controlling the polarization of
the light source.

Addressing sub-pixels:

In order to address a single shutter on the display, a series of electrodes is deposited on

the plates on either side of the liquid crystal. One side has horizontal stripes that form
rows; the other has vertical stripes that form columns. By supplying voltage to one row
and one column, a field will be generated at the point where they cross. Since a metal
electrode would be opaque, LCDs use electrodes made of a transparent conductor,
typically indium tin oxide.
Since addressing a single shutter requires power to be supplied to an entire row and
column, some of the field always leaks out into the surrounding shutters. Liquid crystals

30
are quite sensitive, and even small amounts of leaked field will cause some level of
switching to occur. This partial switching of the surrounding shutters blurs the resulting
image. Another problem in early LCD systems was the voltages needed to set the shutters
to a particular twist was very low, but that voltage was too low to make the crystals re-
align with reasonable performance. This resulted in slow response times and led to easily
visible "ghosting" on these displays on fast-moving images, like a mouse cursor on a
computer screen. Even scrolling text often rendered as an unreadable blur, and the
switching speed was far too slow to use as a useful television display.
In order to attack these problems, modern LCDs use an active matrix design. Instead of
powering both electrodes, one set, typically the front, is attached to a common ground.
On the rear, each shutter is paired with a thin-film transistor that switches on in response
to widely separated voltage levels, say 0 and +5 volts. A new addressing line, the gate
line, is added as a separate switch for the transistors. The rows and columns are addressed
as before, but the transistors ensure that only the single shutter at the crossing point is
addressed; any leaked field is too small to switch the surrounding transistors. When
switched on, a constant and relatively high amount of charge flows from the source line
through the transistor and into an associated capacitor. The capacitor is charged up until it
holds the correct control voltage, slowly leaking this through the crystal to the common
ground. The current is very fast and not suitable for fine control of the resulting store
charge, so pulse code modulation is used to accurately control the overall flow. Not only
does this allow for very accurate control over the shutters, since the capacitor can be
filled or drained quickly, but the response time of the shutter is dramatically improved as
well.
Building a display:

A typical shutter assembly consists of a sandwich of several layers deposited on two thin
glass sheets forming the front and back of the display. For smaller display sizes (under 30
inches), the glass sheets can be replaced with plastic.
The rear sheet starts with a polarizing film, the glass sheet, the active matrix components
and addressing electrodes, and then the director. The front sheet is similar, but lacks the
active matrix components, replacing those with the patterned color filters. Using a multi-
step construction process, both sheets can be produced on the same assembly line. The

31
liquid crystal is placed between the two sheets in a patterned plastic sheet that divides the
liquid into individual shutters and keeps the sheets at a precise distance from each other.
The critical step in the manufacturing process is the deposition of the active matrix
components. These have a relatively high failure rate, which renders those pixels on the
screen "always on". If there are enough broken pixels, the screen has to be discarded. The
number of discarded panels has a strong effect on the price of the resulting television sets,
and the major downward fall in pricing between 2006 and 2008 was due mostly to
improved processes.
To produce a complete television, the shutter assembly is combined with control
electronics and backlight. The backlight for small sets can be provided by a single lamp
using a diffuser or frosted mirror to spread out the light, but for larger displays a single
lamp is not bright enough and the rear surface is instead covered with a number of
separate lamps. Achieving even lighting over the front of an entire display remains a
challenge, and bright and dark spots are not uncommon.

Comparison
Packaging:
In a CRT the electron beam is produced by heating a metal filament, which "boils"
electrons off its surface. The electrons are then accelerated and focused in an electron
gun, and aimed at the proper location on the screen using electromagnets. The majority of
the power budget of a CRT goes into heating the filament, which is why the back of a
CRT-based television is hot. Since the electrons are easily deflected by gas molecules, the
entire tube has to be held in vacuum. The atmospheric force on the front face of the tube
grows with the area, which requires ever-thicker glass. This limits practical CRTs to sizes
around 30 inches; displays up to 40 inches were produced but weighed several hundred
pounds, and televisions larger than this had to turn to other technologies like rear-
projection.
The lack of vacuum in an LCD television is one of its advantages; there is a small amount
of vacuum in sets using CCFL backlights, but this is arranged in cylinders which are
naturally stronger than large flat plates. Removing the need for heavy glass faces allows
LCDs to be much lighter than other technologies. LCD panels, like other flat panel

32
displays, are also much thinner than CRTs. Since the CRT can only bend the electron
beam through a critical angle while still maintaining focus, the electron gun has to be
located some distance from the front face of the television. In early sets from the 1950s
the angle was often as small as 35 degrees off-axis, but improvements, especially
computer assisted convergence, allowed that to be dramatically improved and, late in
their evolution, folded. Nevertheless, even the best CRTs are much deeper than LCDs.
LCDs can, in theory, be built at any size, with production yields being the primary
constraint. As yields increased, common LCD screen sizes grew, from 14 to 30", to 42",
then 52", and 65" sets are now widely available. This allowed LCDs to compete directly
with most in-home projection television sets, and in comparison to those technologies
direct-view LCDs have a better image quality.
Efficiency:
LCDs are relatively inefficient in terms of power use per display size, because the vast
majority of light that is being produced at the back of the screen is blocked before it
reaches the viewer. To start with, the rear polarizer filters out over half of the original un-
polarized light. Examining the image above, you can see that a good portion of the screen
area is covered by the cell structure around the shutters, which removes another portion.
After that, each sub-pixel's color filter removes the majority of what is left to leave only
the desired color. Finally, to control the color and luminance of a pixel as a whole, the
light has to be further absorbed in the shutters. 3M suggests that, on average, only 8 to
10% of the light being generated at the back of the set reaches the viewer.
For these reasons the backlighting system has to be extremely powerful. In spite of using
highly efficient CCFLs, most sets use several hundred watts of power, more than would
be required to light an entire house with the same technology. As a result, LCD
televisions end up with overall power usage similar to a CRT of the same size.
Modern LCD sets have attempted to address the power use through a process known as
"dynamic lighting" (originally introduced for other reasons, see below). This system
examines the image to find areas that are darker, and reduces the backlighting in those
areas. CCFLs are long cylinders that run the length of the screen, so this change can only
be used to control the brightness of the screen as a whole, or at least wide horizontal
bands of it. This makes the technique suitable only for particular types of images, like the

33
credits at the end of a movie. Sets using LEDs are more distributed, with each LED
lighting only a small number of pixels, typically a 16 by 16 patch. This allows them to
dynamically adjust brightness of much smaller areas, which is suitable for a much wider
set of images.
Another ongoing area of research is to use materials that optically route light in order to
re-use as much of the signal as possible. One potential improvement is to use micro
prisms or dichromic mirrors to split the light into R, G and B, instead of absorbing the
unwanted colors in a filter. A successful system would improve efficiency by three times.
Another would be to direct the light that would normally fall on opaque elements back
into the transparent portion of the shutters. A number of companies are actively
researching a variety of approaches, and 3M currently sells several products that route
leaked light back toward the front of the screen.

Image Quality:

Early LCD sets were widely derided for their poor overall image quality, most notably
the ghosting on fast-moving images, poor contrast ratio, and muddy colors. In spite of
many predictions that other technologies would always beat LCDs, massive investment in
LCD production and manufacturing has addressed many of these concerns.

Response Time:

This important specification represents the amount of time it takes for one pixel to go
from active (black) to inactive (white) and back to black again. Think of it in relation to
shutter speed on a camera. It’s the speed at which an LCD panels crystals “twist” to block
and allow light to pass. For 60 frames per second video, common in North America, each
pixel is lit for 17 ms before it has to be re-drawn (20 ms in Europe). Early LCD displays
had response times on the order of hundreds of milliseconds, which made them useless
for television. A combination of improvements in materials technology since the 1970s
greatly improved this, as did the active matrix techniques. By 2000, LCD panels with
response times around 20 ms were relatively common in computer roles. This was still
not fast enough for television use.

34
A major improvement, pioneered by NEC, led to the first practical LCD televisions. NEC
noticed that liquid crystals take some time to start moving into their new orientation, but
stop rapidly. If the initial movement could be accelerated, the overall performance would
be increased. NEC's solution was to boost the voltage during the "spin up period" when
the capacitor is initially being charged, and then dropping back to normal levels to fill it
to the required voltage. A common method is to double the voltage, but halve the pulse
width, delivering the same total amount of power. Named "Overdrive" by NEC, the
technique is now widely used on almost all LCDs.
Another major improvement in response time was achieved by adding memory to hold
the contents of the display – something that a television needs to do anyway, but was not
originally required in the computer monitor role that bootstrapped the LCD industry. In
older displays the active matrix capacitors were first drained, and then recharged to the
new value with every refresh. But in most cases, the vast majority of the screen's image
does not change from frame to frame. By holding the before and after values in computer
memory, comparing them, and only resetting those sub-pixels that actually changed, the
amount of time spent charging and discharging the capacitors was reduced. Moreover the
capacitors are not drained completely; instead, their existing charge level is either
increased or decreased to match the new value, which typically requires fewer charging
pulses. This change, which was isolated to the driver electronics and inexpensive to
implement, improved response times by about two times.
Together, along with continued improvements in the liquid crystals themselves and by
increasing refresh rates from 60 Hz to 120 and 240 Hz, response times fell from 20 ms in
2000 to about 2 ms in the best modern displays. But even this is not really fast enough
because the pixel will still be switching while the frame is being displayed.

Contrast Ratio:
The contrast ratio measures the capacity of a display device to produce the brightest
colour and the darkest colour and it is usually expressed as a ratio of their light
intensities. Even in a fully switched-off state, liquid crystals allow some light to leak

35
through the shutters. This limits their contrast ratios to about 1600:1 on the best modern
sets, when measured using the ANSI measurement. This lack of contrast is most
noticeable in darker scenes; in order to display a color close to black; the LCD shutters
have to be turned to almost full opacity, limiting the number of discrete colors they can
display. This leads to "posterizing" effects and bands of discrete colors that become
visible in shadows. which is why many reviews of LCD TV's mention the "shadow
detail". Since the total amount of light reaching the viewer is a combination of the
backlighting and shuttering, modern sets can use "dynamic backlighting" to improve the
contrast ratio and shadow detail. If a particular area of the screen is dark, a conventional
set will have to set its shutters close to opaque to cut down the light. However, if the
backlighting is reduced by half in that area, the shuttering can be reduced by half, and the
number of available shuttering levels in the sub-pixels doubles. This is the main reason
high-end sets offer dynamic lighting (as opposed to power savings, mentioned earlier),
allowing the contrast ratio across the screen to be dramatically improved. While the LCD
shutters are capable of producing about 1000:1 contrast ratio, by adding 30 levels of
dynamic backlighting this is improved to 30,000:1.
However, it should be noted that the area of the screen that can be dynamically adjusted
is a function of the backlighting source. CCFLs are thin tubes that light up many rows (or
columns) across the entire screen at once, and that light is spread out with diffusers. The
CCFL must be driven with enough power to light the brightest area of the portion of the
image in front of it, so if the image is light on one side and dark on the other, this
technique cannot be used successfully. Displays using LEDs have an advantage, because
each LED typically lights only a small patch of the screen, often as few as 256 pixels in a
square area. This allows the dynamic backlighting to be used on a much wider variety of
images.

Color gamut:
Color on an LCD television is produced by filtering down a white source and then
selectively shuttering the three primary colors relative to each other. The accuracy and
quality of the resulting colors are thus dependent on the backlighting source and its ability

36
to evenly produce white light. The CCFLs used in early LCD televisions were not
particularly white, and tended to be strongest in greens. Modern backlighting has
improved this, and sets commonly quote a color space covering about 75% of the NTSC
1953 color gamut. Using white LEDs as the backlight improves this further.

High definition:

High-Definition Television (or HDTV) is a digital television broadcasting system with

higher resolution than traditional television systems (standard-definition TV, or SDTV).
It was the slow standardization of high definition television that first produced a market
for new television technologies. In particular, the wider 16:9 aspect ratio of the new
material was difficult to build using CRTs; ideally a CRT should be perfectly circular in
order to best contain its internal vacuum, and as the aspect ratio becomes more
rectangular it becomes more difficult to make the tubes. At the same time, the much
higher resolutions these new formats offered were lost at smaller screen sizes, so CRTs
faced the twin problems of becoming larger and more rectangular at the same time. LCDs
of the era were still not able to cope with fast-moving images, especially at higher
resolutions, and from the mid-1990s the plasma display was the only real offering in the
high resolution space.
Through the halting introduction of HDTV in the mid-1990s into the early 2000s, plasma
displays were the primary high-definition display technology. However, their high cost,
both manufacturing and on the street, meant that older technologies like CRTs maintained
a footprint in spite of their disadvantages. LCD, however, was widely considered to be
unable to scale into the same space, and it was widely believed that the move to high-
definition would push it from the market entirely.
This situation changed rapidly. Contrary to early optimism, plasma displays never saw
the massive scaling of economies that were expected, and remained expensive.
Meanwhile, LCD technologies like Overdrive started to address their ability to work at
television speeds. Initially produced at smaller sizes, fitting into the low-end space that
plasmas could not fill, LCDs started to experience the economies of scale that plasmas

37
failed to achieve. By 2004, 32" models were widely available, 42" sets were becoming
common, and much larger prototypes were being demonstrated.

Market Takeover
Although plasmas continued to hold an obvious picture quality edge over LCDs, and even
a price advantage for sets at the critical 42" size and larger, LCD prices started falling
rapidly in 2006 while their screen sizes were increasing at a similarly furious rate. By late
2006, several vendors were offering 42" LCDs, albeit at a price premium, encroaching on
plasma's only stronghold. More critically, LCDs offer higher resolutions and true 1080p
support, while plasmas were stuck at 720p, which made up for the price difference.
Predictions that prices for LCDs would drop rapidly through 2007 led to a "wait and see"
attitude in the market, and sales of all large-screen televisions stagnated while customers
watched to see if this would happen. Plasmas and LCDs reached price parity in 2007, at
which point the LCD's higher resolution was a winning point for many sales. By late
2007, it was clear that LCDs were going to outsell plasmas during the critical Christmas
sales season. This was in spite of the fact that plasmas continued to hold an image quality
advantage, but as the president of Chunghwa Picture Tubes noted after shutting down
their plasma production line, "Globally, so many companies, so many investments, so
many people have been working in this area, on this product. So they can improve so
quickly."
When the sales figures for the 2007 Christmas season were finally tallied, pundits were
surprised to find that LCDs had not only outsold plasma, but also outsold CRTs during
the same period. This evolution drove competing large-screen systems from the market
almost overnight. Plasma had overtaken rear-projection systems in 2005, and in 2007 the
last remaining consumer rear-projection systems were gone. The same was true for CRTs,
which lasted only a few months longer; Sony ended sales of their famous Trinitron in
most markets in 2007, and shut down the final plant in March 2008. The February 2009
announcement that Pioneer Electronics was ending production of the plasma screens was
widely considered the tipping point in that technology's history as well.
LCD's dominance in the television market accelerated rapidly. It was the only technology
that could scale both up and down in size, covering both the high-end market for large

38
 screens in the 40 to 50" class, as well as customers looking to replace their existing
smaller CRT sets in the 14 to 30" range. Building across these wide scales quickly pushed
the prices down across the board.

Environmental effects

The production of LCD screens uses nitrogen trifluoride (NF3) as an etching fluid during
the production of the thin-film components. NF3 is a potent greenhouse gas, and its
extensive half-life may make it a potentionally harmful contributor to global warming. A
report in Geophysical Research Letters suggested that its effects were theoretically much
greater than better-known sources of greenhouse gasses like carbon dioxide. As NF3 was
not in widespread use at the time, it was not made part of the Kyoto Protocols and has
been deemed "the missing greenhouse gas."
Critics of the report point out that it assumes that all of the NF3 produced would be
released to the atmosphere. In reality, the vast majority of NF3 is broken down during the
cleaning processes; two earlier studies found that only 2% to 3% of the gas escapes
destruction after its use. Furthermore, the report failed to compare NF3's effects with
what it replaced, perfluorocarbon, another powerful greenhouse gas, of which anywhere
from 30% to 70% escapes to the atmosphere in typical use.

3.2 Marketing Mix

Marketing your business is about how you position it to satisfy your market’s needs.
There are four critical elements in marketing your products and business. They are the
four P’s of marketing.

1. Product: The right product to satisfy the needs of your target customer.
2. Price: The right product offered at the right price.
3. Place: The right product at the right price available in the right place to be bought
by customer.
4. Promotion: Informing potential customers of the availability of the product, its price
and its place.

39
The marketing mix should be something one has to pay careful attention to because the
success of your business depends on it.

Product
“Product” refers to the goods and services you offer to your customers. Apart from the
physical product itself, there are elements associated with the product that customers may
be attracted to, such as the way it is packaged. Other product attributes include quality,
features, options, services, warranties, and brand name. Thus, one must think of what one
can offer as a bundle of goods and services. Product’s appearance, function, and support
make up what the customer is actually buying. Successful managers pay close attention to
the needs their product bundles address for customers.
Product bundle should meet the needs of a particular target market. For example, a luxury
product should create just the right image for “customers who have everything,” while
many basic products must be positioned for price conscious consumers. Other important
aspects of product may include an appropriate product range, design, warranties, or a
brand name.
Customer research is a key element in building an effective marketing mix. The
knowledge of the target market and the competitors will allow offering a product that will
appeal to customers and avoid costly mistakes. Think long term about the venture by
planning for the ways one can deepen and broaden the product bundle. For instance, one
may be able to take advantage of opportunities to add value through processing,
packaging, and customer service. Other future growth may allow offering the product to
different customers. Start-up businesses are most successful when they concentrate their
efforts on one product or one market, like a restaurant or a car service center does. Later
growth may occur in the same location or may be in different geographic regions.
A different type of growth would be a diversification of products, with the business
offering related products. Offering a whole range of products is most successful if the raw
materials, production processes, and distribution methods are similar, which means one
does not have to acquire new suppliers, skills and equipment, and distribution methods.

40
Price
“Price” refers to how much you charge for your product or service. Determining the
product’s price can be tricky and even frightening. Many small business owners feel they
must absolutely have the lowest price around. So they begin their business by creating an
impression of bargain pricing. However, this may be a signal of low quality and not part
of the image you want to portray. Pricing approach should reflect the appropriate
positioning of the product in the market and result in a price that covers the cost per item
and includes a profit margin. The result should neither be greedy nor timid. As a
manager, one can follow a number of alternative pricing strategies. In the next column are
eight common pricing strategies. Some price decisions may involve complex calculation
methods, while others are intuitive judgments. Selection of a pricing strategy should be
based on the product, customer demand, the competitive environment, and the other
products you will offer.
• Cost-plus: Adds a standard percentage of profit above the cost of producing a product.
Accurately assessing fixed and variable costs is an important part of this pricing method.
• Value-based: Based on the buyer’s perception of value (rather than on your costs). The
buyer’s perception depends on all aspects of the product, including non-price factors such
as quality, healthfulness, and prestige.
• Competitive: Based on prices charged by competing firms for competing products.
This pricing structure is relatively simple to follow because you maintain you price
relative to your competitors’ prices. In some cases, you can direct observe your
competitors’ prices and respond to any price changes. In other cases, customers will
select vendors based on bids submitted simultaneously. In those cases, gathering
information will be more difficult.
• Going-rate: A price charged that is the common or going-rate in the marketplace.
Going-rate pricing is common in markets where most firms have little or no control over
the market price.
• Skimming: Involves the introduction of a product at a high price for affluent
consumers. Later, the price is decreased as the market becomes saturated.
• Discount: Based on a reduction in the advertised price. A coupon is an example of a
discounted price.

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• Loss-leader: Based on selling at a price lower than the cost of production to attract
customers to the store to buy other products.
• Psychological: Based on a price that looks better, for example, $4.99 per pound instead
of $5.00 per pound.
After deciding the pricing strategy, the amount of money actually received may be
complicated by other pricing aspects that will decrease (or increase) the actual amount of
money received. One will also have to decide how to determine:
• Payment period: Length of time before payment is received.
• Allowance: Price reductions given when a retailer agrees to undertake some
promotional activity for you, such as maintaining an in-store display.
• Seasonal allowances: Reductions given when an order is placed during seasons that
typically have low sales volumes to entice customers to buy during slow times.
• Bundling of products/services: Offering an array of products together.
• Trade discounts (also called “functional discounts”): Payments to distribution
channel members for performing some function such as warehousing and shelf stocking.
• Price flexibility: Ability of salesperson or reseller to modify price.
• Price differences among target customer groups: Pricing variance among target
markets.
• Price differences among geographic areas: Pricing variance among geographic
regions.
• Volume discounts and wholesale pricing: Price reductions given for large purchases.
• Cash and early payment discounts: Policies to speed payment and thereby provide
liquidity.
• Credit terms: Policies that allow customers to pay for products at a later date.

The methods discussed here should be a base from which to construct your price. The
options will vary depending on how one chooses to sell your product. Tracing the path of
the product from production to final purchase is a useful exercise to discover this
information. The research needed to understand the pricing along the distribution path
will be more than worth the time it takes. Whatever the price may be, ultimately it must
cover costs, contribute to the image by communicating the perceived value of the

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product, counter the competition’s offer, and avoid deadly price wars. Remember, price is
the one “P” that generates revenue, while the other three “P’s” incur costs. Effective
pricing is important to the success of the business.

Place
“Place” refers to the distribution channels used to get the product to the customers. What
the product is will greatly influence how to distribute it. If, for example, one owns a small
retail store or offer a service to the local community, then one is at the end of the
distribution chain, and so one will be supplying directly to the customer. Businesses that
create or assemble a product will have two options: selling directly to consumers or
selling to a vendor.

Direct Sales
As a producer, one must decide if supplying direct is appropriate for the product, whether
it be sales through retail, door to- door, mail order, e-commerce, on-site, or some other
method. An advantage of direct sales would be the contact one gains by meeting
customers face to face. With this contact one can easily detect market changes that occur
and adapt to them. One also have complete control over the product range, how it is sold,
and at what price. Direct sales may be a good place to start when the supply of the
product is limited or seasonal. For example, direct sales for many home-produced
products can occur through home based sales, markets, and stands. However, direct sales
require that you have an effective retail interface with the customers, which may be in
person or electronic. If developing and maintaining this retail interface is not of interest to
you or you are not good at it, you should consider selling through an intermediary.

Reseller Sales
Instead of selling directly to the consumer, one may decide to sell through an
intermediary such as a wholesaler or retailer who will resell the product. Doing this may
provide with a wider distribution than selling direct while decreasing the pressure of
managing own distribution system. Additionally, one may also reduce the storage space
necessary for inventory. One of the most important reasons for selling through an

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intermediary is access to customers. In many situations, wholesalers and retailers have
customer connections that would not be possible to obtain on your own.
However, in selling to a reseller one may lose contact with your end consumer. In some
cases, one may also lose some of your company identity. For example, your distributor
may request that your product be sold under the reseller’s brand name. One factor that
may influence whether you can find an intermediary to handle your product is production
flow. Wholesalers want a steady year-round supply of product to distribute. If you can
deliver a steady year-round supply that is of consistent quality, then selling through an
intermediary may be a good strategy for you.

Market Coverage
No matter whether you sell your product direct or through a reseller, you must decide
what your coverage will be in distributing your product. Will you pursue intensive,
selective, or exclusive coverage?
Intensive distribution is widespread placement in as many places as possible, often at
low prices. Large businesses often market on a nationwide level with this method.
Convenience products—ones that consumer buy regularly and spend little time shopping
for, like chewing gum—do better with intensive (widespread) distribution.
Selective distribution narrows distribution to a few businesses. Often, upscale products
are sold through retailers that only sell high-quality products. With this option, it may be
easier to establish relationships with customers. Products that people shop around for sell
better with selective distribution.
Exclusive distribution restricts distribution to a single reseller. You may become the
sole supplier to a reseller who, in turn, might sell only your product. You may be able to
promote your product as prestigious with this method, though you might sacrifice sales
volume. Specialty products tend to perform better with exclusive distribution.

Other Place Decision

Product characteristics and your sales volumes will dictate what inventories to maintain
and how best to transport your products. Additionally, the logistics associated with
acquiring raw materials and ensuring that your final product is in the right place at the

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right time for the right customers can comprise a large percentage of your total costs and
needs careful monitoring. You may decide to have a combination of all the distribution
methods. Whatever you decide, choose the method which you believe will work best for
you.

Promotion
“Promotion” refers to the advertising and selling part of marketing. It is how you let
people know what you’ve got for sale. The purpose of promotion is to get people to
understand what your product is, what they can use it for, and why they should want it.
You want the customers who are looking for a product to know that your product satisfies
their needs. To be effective, your promotional efforts should contain a clear message
targeted to a specific audience reached via an appropriate channel. Your target audience
will be the people who use or influence the purchase of your product. You should focus
your market research efforts on identifying these individuals. Your message must be
consistent with your overall marketing image, get your target audience’s attention, and
elicit the response you desire, whether it is to purchase your product or to form an
opinion. The channel you select for your message will likely involve use of a few key
marketing channels. Promotion may involve advertising, public relations, personal
selling, and sales promotions.

A key channel is advertising. Advertising methods to promote your product or service

include the following.

• Radio: Radio advertisements are relatively inexpensive ways to inform potential local
customers about your business. Mid-to-late week is generally the best time to run your
radio ad.
• Television: Television allows access to regional or national audiences, but may be more
expensive than other options.
• Print: Direct mail and printed materials, including newspapers, consumer and trade
magazines, flyers, and a logo, allow you to explain what, when, where, and why people
should buy from you. You can send letters, fact sheets, contests, coupons, and brochures
directly to new or old customers on local, regional, or national levels.

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• Electronic: Company Web sites provide useful information to interested consumers and
clients. Password-protected areas allow users to more intimately interact with you.
Advertisements allow broad promotion of your products. Direct e-mail contact is possible
if you have collected detailed customer information.
• Word of Mouth: Word of mouth depends on satisfied customers (or dissatisfied
customers) telling their acquaintances about the effectiveness of your products.
• Generic: Generic promotion occurs when no specific brand of product is promoted, but
rather a whole industry is advertised. For instance, generic advertising is commonly
found for milk, beef, and pork.

Public relations (PR) usually focus on creating a favorable business image. Important
components of a good public relations program include being a good neighbor, being
involved in the community, and providing open house days.
News stories, often initiated through press releases, can be good sources of publicity.
Personal selling focuses on the role of a salesperson in your communication plans.
Salespeople can tailor communication to customers and are very important in building
relationships. While personal selling is an important tool, it is costly. So you should make
efforts to target personal selling carefully.
Sales promotions are special offerings designed to encourage purchases. Promotions
might include free samples, coupons, contests, incentives, loyalty programs, prizes, and
rebates.
Other programs might focus on educating customers through seminars or reaching them
through trade shows. Your target audience may be more receptive to one method than
another.
Additional sources of promotion may be attending or participating in trade shows, setting
up displays at public events, and networking socially at civic and business organizations.

Final Comment
The four P’s—product, price, place, and promotion—should work together in your
marketing mix. Often, decisions on one element will influence the choices available in
others. Selecting an effective mix for your market will take time and effort, but these will

46
 pay off as you satisfy customers and create a profitable business. The worksheets that
follow will help you construct your marketing plans.
Once you have a good marketing mix—the right product at the right price, offered in the
right place and promoted in the right way—you will need to continue to stay on top of
market changes and adopt your marketing mix as necessary. Marketing is a part of your
venture that will never end.

3.3 Branding Process

The Branding Process can be explained by dividing it into two parts namely,
Understanding Branding and Building Brand.

Understanding Branding

What is a brand?
Brands were originally developed as labels of ownership: name, term, design, and
symbol.
In functionality and contextually they are proprietary visual, emotional, rational, and
cultural image that you associate with a company or a product. When you think Volvo,
you might think safety. When you think Nike, you might think of an advertising
campaign prompting "Just Do It." When you think IBM, you might think "Big Blue." Or
"Yeh Dil Mange More" of Pepsi. The fact that you remember the brand name and have
positive associations with that brand makes your product selection easier and enhances
the value and satisfaction you get from the product.
With time, the definition, the functions, or the essence of brand has changed. However,
today it is what they do for people that matters much more, how they reflect and engage
them, how they define their aspiration and enable them to do more. The objective of
brand has become more of emotional and psychological than that of mere recognition and
differentiation for which the concept of brand came into existence.
Powerful brands can drive success in competitive and financial markets, and indeed
become the organization's most valuable assets. Marketers engaged in branding seek to
develop or align the expectations behind the brand's experience, creating the impression

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that a brand associated with a product or service has certain qualities or characteristics
that make it special or unique.
Brand Management

A powerful tool like a brand cannot be created in a vacuum or from thin air. It requires to
follow certain principles and should have a developed procedure along with well-
supplemented research base. All these discussed issues make branding a real art, which
uses well-defined and established principles but can be refined as well as mastered by
practice. It is something that influences all of us in several ways and leaves a deepening
impact on all of us.
This art of creating and maintaining a brand is called brand management. Brand
management is a philosophy and a total approach to managing companies, and as such
includes much about changing minds. Brand management starts with understanding what
'brand' really means. This starts with the leaders of the company who define the brand
and control its management. It also reaches all the way down the company and especially
to the people who interface with customers or who create the products that customers use.
Brand management performed to its full extent means starting and ending the
management of the whole company through the brand. It is a comprehensive effort and
requires commitment, support and contribution from everybody in the company.
One of the key tasks of Brand Management is development of brand's image. A brand
image may be developed by attributing a "personality" to or associating an "image" with a
product or service, whereby the personality usually a celebrity or image is "branded" into
the consciousness of consumers. A brand is therefore becomes one of the most valuable
elements in an advertising theme. The personality and theme, visuals and even the appeal
selected revolves around the image and helps in integrating, promoting and
communicating the image to the targeted audiences.
What makes up a brand identity?

Brand identity includes brand names, logos, positioning, brand associations, and brand
personality. A good brand name gives a good first impression and evokes positive
associations with the brand.
A positioning statement tells, in one sentence, what business the company is in, what
benefits it provides and why it is better than the competition.

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Brand personality adds emotion, culture and myth to the brand identity by the use of a
famous spokesperson (Sharukh Khan – Hyundai Santro), a character (the Nirma Girl or
Amul Girl), an animal (the Merrill Lynch bull) or an image (Hum Hai Na - ICICI).
Brand associations are the attributes that customers think of when they hear or see the
brand name. McDonalds television commercials are a series of one brand association
after another, starting with the yellow arches, a family entering the restaurant, a children's
party, lots of fun and following with associations of Good Quality reasonably priced
Burgers, Ronald McDonald, kids, Happy Meal, consistent food quality, etc.

How do we determine our brand identity?

Brand has been called the most powerful idea in the commercial world, yet few
companies consciously create a brand identity. It is advised to senior executives, CEOs
and small-scale enterprise owners to research their customers and find the top ranked
reasons due to which customers buy their products rather than their competitors. Then,
pound that message home in every ad, in every news release, in communications with
employees and in every sales call and media interview. By consistent repetition of the
most persuasive selling messages, customers will think of you and buy from you when
they are deciding on whether to buy from you or your competitor.
The brand can add significant value when it is well recognized and has positive
associations in the mind of the consumer. This concept is referred to as brand equity.

What is Brand Equity?

Brand equity is an intangible asset that depends on associations made by the consumer.
There are at least three perspectives from which to view brand equity:
Financial - One way to measure brand equity is to determine the price premium that a
brand commands over a generic product. For example, if consumers are willing to pay
Rs. 100 more for a branded product over the unbranded product, this premium provides
important information about the value of the brand. However, expenses such as
promotional costs must be taken into account when using this method to measure brand
equity.

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Brand extensions - A successful brand can be used as a platform to launch related
products. The benefits of brand extensions are the leveraging of existing brand awareness
thus reducing advertising expenditures, and a lower risk from the perspective of the
consumer. Furthermore, appropriate brand extensions can enhance the core brand.
Consumer-base - A strong brand increases the consumer's attitude strength toward the
product associated with the brand. Attitude strength is built by experience with a product.
The consumer's awareness and associations lead to perceived quality, inferred attributes,
and eventually, brand loyalty.

Strong brand equity provides the following benefits:

• Facilitates a more predictable income stream (higher profitability).

• Increases cash flow by increasing market share, reducing promotional costs, and
allowing premium pricing.
• Brand equity is an asset that can be sold or leased.
However, brand equity is not always positive in value. Some brands acquire a bad
reputation that results in negative brand equity. Negative brand equity can be measured
by surveys in which consumers indicate that a discount is needed to purchase the brand
over an unbranded product. Continuous fall in sales is the biggest indication of negative
brand equity. This may happen due to out-dated product, low quality of product, poor
image or communication and better brand and image of competitor's product.

Brand Elements
Brand elements are the components or constituents of brand that are designed and put
together to strengthen brand's image. Any brand will consists of following elements:

• Brand name and logo

• Symbol and character
• Packaging
• Slogan

There are five criteria to judge whether these are good brand elements:

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 • The recall value of Brand name should be high. It should be simple, easy to
pronounce and easy to understand. It should create a connection between the need
of the consumer and the product. The brand name should also connote what does
product stands for.
• The symbol and character being used as brand elements should also gel well with
product features and characteristics and they should be in good term to identify
the product with.
• In addition, the transferability of brand elements should be high. It should provide
company with a viable option to create brand extension or brand line expansion or
it should generate sufficient recognition for the company.
• The logo, symbol, packaging, slogan all should be catchy and flexible over time.
They should not look time beaten neither they should be changed frequently.
There should be some consistency and they should be used for several years
before they are changed. They should represent what the company, the brand
stands for, and they should communicate a unified message that depicts or
supports the brand image. The elements should have adaptability and should be
able to change as per demand of time and consumers.
• Brand name, logo, symbols, packaging indentations etc. all should be protected,
use of registered trademark. Intellectual property protection is the fifth criteria.
Brand Attributes
Brand attributes are functional or emotional associations that are assigned to a brand by
its customers and prospects. Brand attributes can be either negative or positive and can
have varying degrees of relevance and importance to different customer segments.
Examples of Brand Attributes:

• Influential
• Innovative
• Inclusive
• Relevant
• Connecting
• Leadership
• Humane

Is branding just for large companies?

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NO! It is one of the myths that only large business house or the player in an industry with
excess competition needs a brand. Branding is something that every one needs and can
be applied to any business, organization or product. The techniques of branding have
been kept secret for many years because it provided a competitive advantage to those
companies that used it or devoted regular cash flow streams towards this effort. Retailers,
service businesses, manufacturers and businesses of all types and sizes, can use this
process rather they should do it and they should consider branding expenditure as long-
term investment or a capital investment, which will fetch them hefty returns in long time
frame.

Brand Building

Overview

Branding is more than just a business buzzword. It has become the crux of selling in the
new economy. If the old marketing mantra was," Nothing happens until somebody sells
something," the new philosophy could be" Nothing happens until somebody brands
something."
In its simplest form, a brand is a noun. It is the name attached to a product or service.
However, upon close inspection, a brand represents many more intangible aspects of a
product or service: a collection of feelings and perceptions about quality, image, lifestyle
and status. It creates in the mind of customers and prospects the perception that there is
no product or service on the market that is quite like yours. In short, a brand offers the
customer a guarantee and then delivers on it.
You might infer, then, that if you build a powerful brand, you will in turn be able to
create a powerful marketing program. However, if you can't convince customers that your
product is worthy of purchasing, no amount of advertising dollars, fancy packaging or
public relations will help you achieve your sales goals. Therefore, successful branding
programs begin with superior products and services, backed by excellent customer
service that permeates an entire organization.

The Importance of Branding

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One of the truths of modern business is that there is almost nothing that your competitors
can't duplicate in a matter of weeks or months. If you have a great idea, you can be
certain that somebody will copy it before long. And not only will they follow your lead,
but they may also be able to do a better job or sell the product or service at a lower price.
The question then becomes, "What competitive edge do I have to offer that cannot be
copied by anyone else?"
The answer? Your brand.
Creating a strong brand identity will build mind share — one of the strongest competitive
advantages imaginable. As a result, customers will think of your business first when they
think of your product category. For example, when you think of tissues, more likely than
not, you think of the Kleenex brand. And when you're looking for tape to wrap a present,
Scotch is the brand that springs to mind. Likewise, when your child wants a hamburger,
he will often say he wants to go to McDonald's. The reason behind these strong brand-
product associations is that these companies have built rock solid brand identities.
"A brand is the one thing that you can own that nobody can take away from you," says
Howard Kosgrove, vice principal of marketing at Lindsay, Stone and Briggs Advertising
in Madison, Wis. "Everything else, they can steal. They can steal your trade secrets.
Eventually, your patents will expire. Your physical plant will wear out. Technology will
change. But your brand can go on and live. It creates a lasting value above and beyond all
the other elements of your business."
That value is often called brand equity, or the worth of the brand. Brand equity, unlike
other abstract marketing notions, can be quantified. For instance, if you owned the
Marlboro Company and wanted to sell it, you would begin to value the firm by looking at
the assets tied to the Marlboro brand. You would then identify the cost of the factories,
patents, trucks, machines and staff." They are worth a small fraction of what you can sell
that brand for," says Kosgrove. "The value of that brand is huge compared to those actual
physical assets."
The importance and value of branding becomes apparent when an entrepreneur wants to
sell his or her company or take it to Wall Street for a public offering or other infusion of
capital. It is often the brand that a business owner has to sell in such cases.
When Should You Brand?

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Because of the competitive nature of business today, nearly all industries can benefit from
a branded product. All of the traditionally brand-conscious industries, including fashion,
restaurants and consumer goods, are being forced to continue to brand heavily — perhaps
even more strategically than they ever have in the past. Financial services, which were
one of the last frontiers, are even beginning to see the importance of branding by tagging
banking packages and even mutual funds with catchy names. Even industrial markets,
where cost is usually more of a loyalty building factor, has seen brand names creep in.
For example, Tyvek, a DuPont fiber, improbably one of the best knew industrial branded
products.
Other industries in which branding is a must include:
• Fast food
• High-tech
• Beverages
• Packaged Goods
• Petroleum
• Entertainment
• Retail
• Auto
• Pharmaceutical
Types of Brands
A brand cannot be all things to all people. By definition, no one brand is going to appeal
to all customers. On the contrary, branding is based on the concept of singularity —
targeting individuals in a personal manner— and therefore precludes the concept of
universal appeal. This is why many brands broaden and widen their appeal by creating
tertiary brands or line extenders.
Although most industries and products or services can benefit from a brand, not every
product needs its own stand-alone brand. Brands can be separated into three categories:
primary, secondary and tertiary.
Primary Brands - This is a company's core brand or umbrella brand. Primary brands
typically garner a large percentage of a company's revenue potential and therefore need to

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be given priority and have a sufficient amount of advertising in order to root them firmly.

Secondary Brands - These are often line extenders, or "flankers," for a core brand.
Secondary brands don't need to have their own name; usually a modifier to the brand
name will suffice and strengthen the core brand. Take, for instance, a toothbrush called
the Crest Deep Sweep. Crest is the core brand, and Deep Sweep is the secondary brand.
Line extenders are characterized by having a descriptive term that allows the base brand
to be the true selling proposition and the flanker to really designate to the audience what
that particular product's key feature or benefits are.

Tertiary brands - These brands typically have insignificant revenue potentials or

expectations, but they contribute to the company's overall image in some way. Therefore,
they sometimes don't sport registered brand names, but just descriptors. For example, a
garbage bag manufacturer may make a generic-brand bag in addition to its flagship brand.
The generic line may bring in minimal revenue for the company, but it fills a need within
a niche market so the company continues to manufacture it under the unregistered name
Household Trash Bags. Therefore, the generic line is considered a tertiary brand for this
company.

What Goes Into a Brand?

If your product or service is new or unique, theta of branding is made easier. Since there
are no pre-existing biases toward the product or service, it will be easy to manipulate
customer attitudes.
More often, your product or service will have been in existence for a while and have
direct competition. And if it doesn't, it probably soon will. Therefore, products that may
be roughly equivalent in terms of their features need to have a brand identity that will
impact consumer choice.
Brand identity is comprised of:
Pricing - a component of value; higher prices may signify to consumers higher quality,
and lower prices may suggest decreased value.

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Distribution - availability; limited distribution of a product or service may imply
exclusivity to discerning consumers.
Quality - which impacts satisfaction; obviously, higher quality will translate to more
satisfied customers who come back again and again to purchase your offerings.
Presence - prominence in the paid and unpaid media; products or services with a high-
profile market presence will lead to brand recognition and increased sales.
Awareness - top-of-mind awareness, residual awareness and recognition, which are
directly related to presence; the higher your offering's awareness, the better your sales
results will be.
Reputation - enduring public opinion of brand character, which is built over time and
difficult to change once established.
Image - perceptions of brand traits or prototypical buyers; often represented by qualities
the consumer relates to. Like reputation, image is difficult to change once established.
Benefits - consumers may equate certain positive and negative consequences with use of
your product or service; these may be warranted or unwarranted.
Positioning salience - differentiation from the competition, which is established by a
combination of all elements of the brand.
Preference - a predisposition to buy displayed by consumers who are establishing brand
loyalty.
Share of market - increased market share is a direct result of a successful branding
campaign.
Customer commitment - loyalty is built through long-term branding and close consumer
contact.

What's in a Name?

A. Characteristics of the Campaign

Positioning is the art of creating a brand that can persuade and realistically demonstrate
its relevance to a customer's daily life to become his or her regular choice.
Positioning is not created by the marketer or the individual brand itself, but by how others
perceive it. In fact, Kosgrove says that the brand is not created by the marketer at all, but

56
rather by the customer. Marketers don't create the positioning; rather, they create the
strategic and tactical suggestions to encourage the customer to accept a particular
positioning in his or her mind.
For instance, bread and milk are not branded items, and despite companies' push to try
and brand the two products, no company has found much success building brand equity.
When customers want either one of those staple items, they usually choose what is on
sale or what is available on their local grocer's shelves. Beer and cola, on the other hand,
are heavily branded product categories: Consumers have formed a relationship with and
will search out their preferred brands.
To position your offering properly, you need to identify the key attributes or benefits that
represent the value of your product or service. That will, in turn, create trust in your
brand. As you begin to understand the relationship that your customers have with your
brand, you will be able to more efficiently meet their needs, wants and desires through
your brand. "Positioning is everything," says Dettore. "Positioning studies identify the
audience according to their needs, expectations and wants. Those drivers then come into
developing products and services that best fit those audiences' needs and wants."
While marketers do not literally position brands, they can have a significant influence on
how they are positioned. Several characteristics can work in a positioning campaign, such
as:
Relevance to a customer's lifestyle - The more apparent the connection is between the
brand and the prospect's daily activities, the greater the chances are that the prospect will
buy that product. Relevance, or the connection that the prospect has to the brand identity,
is how customers ultimately decide which brands to buy and which they will discard.
Ask yourself: Is the identity of the brand too young for my target market? Is it too old? Is
it too upscale?
Promises backed by support - Benefits need to be backed with some sort of persuasive
reason to believe the product's hype. Many times, products or services have some formula
or patent that is "unique" from all the other brands out there. Why do we trust Pantene
shampoo, for instance? Because we believe in the brand's "revolutionary" Pro-V formula
that leaves hairs strong and healthy. Why do we believe Secret antiperspirant will keep
women smelling sweet? Because "it's pH balanced for a woman, and not a man."

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Ask yourself: What promises are you making about your brand? Can my products or
services follow through on those promises?
Message of the brand Is clear and focused - No matter how brilliant a strategy you have,
you need to be clear about the message. Some examples of crystal clear campaigns
include "Gillette - The Best a Man Can Get" or "Choosy Moms Choose Jif."
Ask yourself: Are my messages in line with what I want to convey about my products and
services? Are there messages that can be misconstrued? If so, how can I change them to
be more accurate?
Message of the brand Is appropriate - Have you ever seen a commercial on TV that seems
to come from left field? It grabbed your attention, but told you nothing about the product
or service, and it seemed inappropriate for what is being sold. For instance, financial
institutions can't effectively work humor into their ads because the preconceived notion is
that banks are not supposed to be fun or entertaining. The message that you send needs to
be appropriate to the product or service you are trying to brand.
Ask yourself: Are my advertising messages in line with the image I'm trying to convey
about my company, products and services? If not, could they be hurting, rather than
helping, the brand?
Product Is the genuine article - Many successful companies build customer trust by
claiming to be the real McCoy. For instance, Pace Picante sauce tells you that they are not
the brand from New York City. Coke tells you that "It's the Real Thing," "Coke Is It" and
"Always Coca-Cola."
The copy line helps reinforce that this brand is the genuine article for that category of
products. Even service companies can make claims to being the real deal. AT&T's True
Voice lets its customers know that they are receiving a level of clarity above what other
telecommunication companies carry through their fiber optic lines.
Ask yourself: In what ways are my products and services more "genuine" than my
competitors'? How can I emphasize those elements to give the brand a competitive
advantage?

B. Types of Prompts in a Campaign

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Once you determine the way in which you can reach your market, the next thing to look
at is how you are going to lure your customer to try your brand. That method is called the
"positioning prompt" of the brand.
A brand can evoke several different types of prompts. Be aware, however, that
positioning prompts are not verifiable scientific hypotheses, and there is a great deal of
interpretation and high degree of risk that is involved in choosing one positioning over
the other. That's why it makes sense to look at alternative positioning types before
deciding on which one you will attach to your brand.
1. Quality positioning - Perception of quality is probably one of the most important
elements for a brand to have and can be combined with any of the other prompts below.
"If you look at the most profitable companies in the country, they have a very high
perception of quality, and it may be different than measured quality," says Kosgrove.
"Somebody can come in and say, 'My product is better.' Look at the computer industry,
for instance. People say that Apple is a better product [than the PC]. But PC
manufacturers will say that the PC is better because more people believe in it. You can
talk about how your product or service is better, but you have to get people to believe in
it."
Quality, or the perception of quality, lies in the mind of the buyer. Build a powerful
perception of quality, and you will succeed in creating a powerful brand. Al Reis and
Laura Reis, authors of "The 22 Immutable Laws of Branding," say the best way to
increase perception of quality is to narrow the company's focus. When you narrow a
product's focus, they explain, you become a specialist rather than a generalist, and a
specialist is perceived to know more, or be of "higher quality" than a generalist.
Another way to build the perception of high quality is to simply attach a higher price tag
to your brand. Most people think that they know a high quality product from another, but
in reality, things are not always as they seem. For example, does a Rolex really keep
better time than a Timex? Does a Mont blanc pen write better than a Cross? Do Sony
radios get better reception that Sanyo's? Do Calloway Clubs really improve your golf
game? Not really, but all of these brands carry a perception of higher quality because of
their higher prices.

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Believe it or not, high price is a benefit to some customers. It allows the affluent
consumer to obtain psychological satisfaction from the public purchase and consumption
of a high end product. Of course, the product or service does need to have some perk or
difference to justify the higher price. For instance, Rolex makes a heavier watch than
Timex. Mont blanc has a fatter pen than Cross. Calloway clubs have a bigger head than
Titleist. Each of these characteristics gives the perception of quality, but they don't
necessarily improve performance.

2. Value positioning -- Although at one time, items that were considered to be a good
"value" meant that they were inexpensive, that stigma has fallen by the wayside. Today,
brands that are considered a value are rising in popularity amongst consumers. In fact,
packaged good brands, especially cereals, experienced a backlash when their prices rose
too quickly. Private supermarket labels, as well as smart companies like Quaker, which
introduced a breakfast cereal that aims at undercutting brands like Kellogg's or Post, have
found a strong market. Southwest Airlines is probably the best example of how a
company has been able to offer discount prices and still keep a strong brand identity. In
fact, most of the other major airlines have followed Southwest's lead by rolling out value-
priced flights under new, co-branded names.
3. Feature-driven prompts -- More marketers rely on product/service features to
differentiate their brands than any other method. The advantage is that the message is
clear, and the positioning will be credible if you stick to the facts about the product.
Unfortunately, feature-orientated stances are often rendered useless if the competition
comes out with a faster or more advanced model.
4. Relational prompts -- One of the most effective ways to create interest in a brand is to
send out a positioning prompt that resonates well with potential buyers. For instance,
Sketchers equates sneakers with cool and that characteristic passes to all who wear them.
Apple computer, which was down on its luck in the overall computer marketplace, started
asking computer users to liberate themselves from the PC camp and" Think Different."
Jeep has created a car and branded apparel for rugged individualists. These brands have
achieved positioning based on who buys what they sell, not solely by what they sell.

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5. Aspiration positioning -- These are positioning prompts that offer prospects a place
they might like to go, or a person they might like to be, or a state of mind they might like
to achieve. The now defunct Joe Camel mascot for Camel cigarettes infuriated parents,
anti-smoking lobbyists and the federal government for promoting an identity of cool that
young people could aspire to and achieve through smoking their cigarettes. And a new
campaign from IBM has random people exclaiming," I am Superman," because they use a
new version of the Lotus Notes software program.
6. Problem/solution prompts -- As the name implies, problem/solution prompts show the
consumer how a sticky situation can be relieved quickly and easily with the brand or
service. What problem/solution campaigns lack in imagination, they usually make up for
in directness and credibility. Packaged good brands tend to be the most frequent users of
problem/solution prompts. For example, frozen meals cut meal preparation time to
minutes. Detergents and cleansers also make good use of these prompts.
7. Rivalry-based positioning -- By definition, positioning deals with how one brand is
thought of compared to its obvious competitors. Therefore, the idea of a rivalry-based
position might seem redundant but many campaigns take this approach. Laundry
detergents, for one, are constantly going head-to-head to prove which one has the most
power to lift stains. Other campaigns that challenge consumers to be the judge have
cropped up between car companies, garbage bags, even between search engines on the
Web.
8. Warm and fuzzy positioning -- Underneath our capitalist driven needs to consume, we
are still docile and emotional animals. As such, many marketers play on our feelings. In
the book, "Building Brand Identity: A Strategy for Success in a Hostile Marketplace,"
author Lynn Upshaw writes, "How people feel about a brand is oftentimes need- or desire
based, which means that emotional or psychological approaches can oftentimes be very
effective as positioning prompts."
Need proof? AT&T's commercials are often tearjerkers, asking friends and family to
"Reach Out and Touch Someone." Volvo hints that through purchasing their Swedish
import cars, you are buying the only real way to "Drive Safely."
9. Benefit-driven positioning -- Other brands base their entire positioning on the fact that
they give back to the consumer. Discover credit card, for instance tells customers that "It

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Pays to Discover." Use the card and get money back. Discover was among the first major
credit cards companies to provide its users with a financial incentive for using their card.
Now nearly all credit cards offer some type or reward, be it frequent flier miles, discounts
on gas or store purchases.

C. Determining Which Position Will Work for Your Brand

To determine which position will work best for your company, ask yourself what
business you are really in. Similarly, determine what the benefits are for your products
and services. If you sell computers, for example, you maybe in the business of:

• Information
• Speed
• Convenience
• Technology

If you sell travel packages, you may be in the business of:

• Tourism
• Recreation
• Entertainment
• Stress-reduction

Next, focus on relevant reality-based customer benefits. After completing the necessary
research and reviewing the relevant examples of positioning, your marketing team should
be able to describe a precise customer benefit that can be addressed in some way by the
brand. The team members must be clear on what customer benefits are being offered and
how they are based on real life needs and desires. To accomplish this, have them answer
the following questions:

• Who are your competitors and how are they positioning their brands?

• What can you offer that is different?

• Who would buy our product or service?

• What markets should we target with our brand?

• Do we need to register trademarks for our products or services?

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 • Are there extension opportunities for these branded products or services? If so,
what are they?

• How much advertising support are we going to need for the brand and how much
will it cost? Does our budget allow for those costs?

• How descriptive is the brand? Are there ways that it can be improved?

• Can the brand name be pronounced easily? Does it translate well into other
languages?

• Are there regulatory issues? If so, how will we overcome them?

Building Brand Personality

Brands that carry with them a true persona, and the beliefs and experiences similar to a
personality make a brand rise to a new level. After all, it's hard not to like someone with a
good personality. In matters of branding, a personality helps to humanize an otherwise
inanimate object or service so that a prospect's defenses are lowered. An attractive brand
personality can pre-sell the prospect before the purchase, reinforce the purchase decision,
and help forge an emotional link that binds the buyer to the brand for years to come. In
such cases, "you are more willing to overlook flaws and search for strengths," writes
Upshaw.
According to Kosgrove, small-company brands usually take on the personality of the
entrepreneur who owns them. It's hard, he says, for an entrepreneur to create a brand that
is a 180-degree turn against what the founder is like. Therefore, if the founder is a high
adventure sports enthusiast, the brand will probably not be the favorite of a conservative
investment banker. "A brand is everything that your customers know about you," says
Kosgrove. Every contact they have with you helps to build that brand, good or bad. An
entrepreneur or founder, to a large extent, is the brand because the personality and the
interest of the founder is going to have a lot to do with the way that the company is
perceived by others."
One entrepreneur whose personality permeates every aspect of his brand is Nicholas
Graham, founder of Joe Boxer. The off-beat, humorous line of boxer shorts and
loungewear that the company produces bears the distinctive image of the zany Graham
himself, who is best known for unorthodox marketing antics like shooting an underwear-

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laden rocket into space and holding an undergarments "fashion show" on a transatlantic
flight on Virgin Airways.
A brand's personality can offer the single most important reason why one brand will be
chosen over another, particularly when there are few product or service features that are
different between competing brands. The personality gives the consumer something to
relate to that can be more vivid than the perceived positioning of the brand.
The personality, in some ways, is much more real than the other aspects of the brand
because it is the outstretched hand that touches the customer as an individual.
Although a strong identifiable personality is not imperative, it can make it easier for
customers and prospects alike to understand what the marketer has to offer. Even more
important, a brand with a distinctive personality presents the would-be buyer with
something he or she can relate to as an individual, a practical prerequisite for success in
an increasingly individual-driven marketplace. Personality is usually shown in three
ways.
Provider-driven - Provider-driven images are popular with services because there is a
greater need to build confidence between the provider and seller since there is usually an
intangible product on the table. Brands that lean heavily on the provider image include
insurance companies and financial institutions. Prudential's "The Rock" and Allstate's
"You're in good hands," show that the brand is trustworthy and their brands reflect the
same attitude.
Image of the user - Other brands like to show that the people who use the brands are
people that you could be friends with, relate to, or want to be like. Many companies with
branded products geared toward Generation X and Y use this tactic. However, these
generations are also skeptical of marketers and are keenly aware of when a brand is
targeting them.
Image of the product or service - As strange as it may sound, packaged products often
take on a personality that consumers can relate to. Whether through a mascot or an
animated figurine, products come to life to give consumers more than just a brand to
trust, but also a face. For instance, the Pillsbury Doughboy's laugh reinforces that the
product will make your family feel good.

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Strengthening Your Core Brand

A. Co-Branding

Although it has become somewhat of a fad amongst companies, co-branding is a way for
businesses to extend their brand's identity and cut expenses by partnering with compatible
products and services. For instance, Tropicana and Chiquita have made numerous fruit
juice concoctions by blending their respective specialty flavors. And Betty Crocker uses
real Hershey's chocolate in their brownie mix. And financial companies have even
jumped on the bandwagon. A slew of credit card companies has-been teaming up with
retailers to offer co-branded items such as the L.L. Bean credit card.
On the Web, co-branding, or what is better known as strategic relationships, are rampant.
Besides content swaps, companies invite branded products and services to be sold from
their sites in what are known as affiliate programs.
Co-branding works because it creates new excitement for the brands involved. One brand
teams with another to offer a product with an enhanced (or seemingly so) benefit.
However, before you jump into a co-branded relationship, ask yourself if the excitement
that the deal will bring will build the brand or sabotage it. Sometimes a co-branding
strategy isn't as advantageous as it may seem, particularly for small companies that
oftentimes get overshadowed by larger partners. The larger company receives the added
benefits from the smaller company's product, but the smaller company's brand doesn't
really receive much attention.
Check that your potential partner is not only compatible with your product but also that it
won't eclipse your own brand. For instance, Intel's Pentium Processor campaign has-been
so successful that many computer buyers don't care whether they have an IBM or
Hewlett-Packard or Dell computer. Instead, their question is, "Does it have Intel inside?"
In fact, Intel has been so successful at marketing their brand that the industry now
benchmarks the performance of other semiconductor chips based on Pentium by calling
them Pentium-like Processors.
No two brands have exactly the same impact on the consumer. Therefore, one partner in
every co-branding partnership will receive more attention than its counterpart. If that risk

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is accurately assessed and accepted by the junior partner and it's still a net gain for its
brand identity, then the partnership is sound.

B. Identity Contact

Identity contact is the sum total of all information and experiences that a customer or
prospect has with a brand. As you can imagine, there are many different ways that a
customer can have contact with a brand in such a way that it communicates his or her
identity.
"It's the marketing team's job to prioritize identity contacts and to judge how they might
contribute to the brand's identity, and in what way they are relevant to the realities of the
consumer's everyday life," writes Upshaw.
For example, if a software company comes up with a new version of one of its programs,
more can be done than just change a copy strategy and run new advertising; nearly all of
the brand identity contacts can be manipulated to increase emphasis on the new functions
of the software. For example:

• The product's packaging can be reprinted so that bursts highlighting a "New" or

"Improved" version of the program.

• Store salespeople can wear pins alerting customers to ask them about the new
software features.

• Support staff can tell current users that there is a new version available when they
call for help or service on the older version of the software.

• The company can highlight the new product at trade shows or conventions.

• A press release can be generated about how programs need to keep pace with the
demands of the workplace and provide proper functionality.

Brand Example Brand Identity Contract Contribution to Brand Identity

Pep Boys Follow-up phone call after servicing Reminder that the auto maintenance shop
the car. cares about customer service; method to
check up on efficiency/courtesy of service
department; opportunity to remind customer
of upcoming sales.

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McDonald's Ronald McDonald Houses for the In addition to its humanitarian value, RM
families of seriously ill children. houses remind parents of McDonalds'
commitment to the American family.

MCI Electronic billboard tabulating how Brand-name registration in compelling way;

much MCI customers have saved by reminder of savings positioned; revisable
using its services. numbers send signal that MCI is on top of
what's happening in prices.

Nike Advertisements with athletes of
Olympic or star stature. Close-up of
Nike logo on shoes of player in NBA
championship or on Tiger Woods in
PGA Gold Tours.
Brand associated with the best athletes in
their sport; reinforcement of superior quality
or product and prestige of being worn by
winners.

Identity contacts are important because they can set a tone for subsequent contacts with
the company and the brand. GM's Saturn is one brand that has been able to establish the
commitment of the brand before a customer even walks into the showroom." Saturn said,
'We are not going to sell the car; we are going to sell the company's brand,'" says
Kosgrove. "They say 'We are a different kind of car company, and we are going to prove
it.' They do that by making sure that every point of contact with a customer is going to be
completely different. When a customer enters the showroom, they see people in matching
polo shirts rather than suits, and the showroom itself is clean and friendly, not slick. And
when there is a service problem, they give coffee and doughnuts to the people when they
come in, instead of being crabby with them and making them wait."
The result, says Kosgrove, is that the brand is known as just what they said it was — "A
Different Kind of Car Company"— even though they are still selling the same products
that every other car company is.

C. Grassroots

Grassroots marketing is a form of branding that has really hit its stride in the last few
years. Sponsorships of everything from local baseball teams to non-mainstream musical
events have been sought by marketers looking to carry their brands into the customer's
backyard.
Vans, a shoe company in Santa Fe Springs, Calif., has led the way in sponsoring events
that their younger customers care about. The sneaker company has become synonymous

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with alternative sports by hosting events in the skateboarding, BMX biking and snow
boarding categories. Besides just sporting events, events where shoes are a prerequisite,
the company has done well stepping into other areas of their customers' lifestyles. Vans
sponsors the very popular alternative Warped Tour, an alternative music festival that
combines other types of cutting-edge live entertainment. Last summer's roving tour
featured punk and "ska" bands as well as pro demos from skateboarders, in-line skaters,
rock climbers and BMX bikers. In past years, the tour has also featured the Mega-Pump
Climbing Wall Competition and Spike and Mike's Festival of Animation.
Nantucket Nectars has also garnered fame by using grassroots promotion strategies. The
juice company sponsors two Winnebagos to roam the countryside and entice consumers
to become "juice guys."
Smaller companies, while they may not have the budget to get involved with paying the
gas and living expenses of sending two employees on a cross-country jaunt to spread the
word about their brand, can easily sponsor community events. East Providence Cycle, a
bike shop in East Providence, R.I., for instance, tune-up students' bicycles on a local
college campus to get them ready for the back-and-forth trips from the dorms to classes.
The business also sets up makeshift service shops off area bike paths on sunny summer
days.
"You want to look at what your customers care about," says Kosgrove. "If you have a
retail business in a neighborhood, you may want to focus on a charitable or community
organization in your neighborhood and make a commitment to it so people understand
that you are committed to the community. Ask yourself: What do my customers care
about, and how can I get involved in those things?"

D. Word of Mouth

Whether it is planned or not, word of mouth is well worth the effort it takes to generate it.
"Word of mouth is still considered the most potent marketing communication of all
because it's dispensed by the most credible sources of all — ordinary citizens who don't
carry a built-in bias of commercial sponsors," writes Upshaw. "When your company is
lucky enough to be the beneficiary of word of mouth, your identity problems may be
over, and your capacity problems may just be beginning."

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Some of the better known beneficiaries of word of mouth phenomena: Furby, the toy
sensation of Christmas '98 that sent parents into shopping frenzies, and Tickle Me Elmo,
the hot toy in 1997.
Snapple also hit it big when kids started passing the word about the delicious iced tea
beverage. The company capitalized on that by highlighting the word of mouth
phenomena in its television ads, going out to ask people who wrote to the company if
their passion for Snapple was really true. In one memorable ad, the ex-Mayor of New
York City, Ed Koch, visits a young fan from the Midwest to ask if he really believes that"
Snapple is the only good thing to have come out of New York."
For Web-based brands, word of mouth can work extremely well. For instance, the
company US Wings, which sells genuine military jackets and gear, has never posted an
advertisement online. Instead, the company has relied on word of mouth to promote its
brand and Web site during its four-year history. The founder, Sergeant Dave Hack, says
that by staying true to its mission, the company has been able to generate positive
promotion on the Web. "We are selling something with quality and value. People are
going to tell other people," he says. "It snowballs, and you end up with something that is
very positive."
While it is difficult to intentionally generate a positive word of mouth branding strategy,
it can be done if you have the right product and the right strategy. It also doesn't hurt to
have something extremely unique, be it the product or the promotional vehicle.
One word of caution: Brands that are propelled by word of mouth often run out of steam
quickly since most tend to be just fads or trends. Competitors are also quick to duplicate
the product or service being hyped. Once strong word of mouth is achieved, the company
needs to convert the brand into something that will sustain the hype. For instance, after
Snapple's success, nearly every beverage company came out with their own line of iced
tea — each one with a different gimmick, be it sun-brewed, spring-filtered, ginseng-
fortified, or some other herbal concoction. After the onslaught of the copycat brands, the
company's earnings slid. Snapple was smart to sell its brand to the Quaker Company in
1994 for $1.7 million.

Creating an Online Identity

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Online companies are putting branding to work with remarkable success. "The Internet
helps promote companies' products in a very efficient manner and especially to all
audiences in all parts of the world," says Dettore. "Typical advertising media hit only a
segmented or regional strategy, so the Internet is one of the most cost effective ways to
brand."
Research shows the brand names of seven Internet companies are already recognized by
more than 50 million U.S. adults, giving them' mega-brand' status. According to a survey
from Intelliquest, 10,000 Internet users associated the following Net names with the
following products:

• Books: Amazon.com - 56 percent

• Music: CDNOW - 24 percent
• Computer Software: Microsoft - 30 percent
• Computer Hardware: Dell - 20 percent
• Clothing: The Gap - 12 percent
• Travel: AOL, Yahoo!, Travelocity - 8 percent each
• Autos: Yahoo! - 6 percent

Kosgrove says that companies that want to build their brand online may actually have an
advantage over brands in the physical world since there is the opportunity to start
freehand has new associations. "Any long established brand has had bad experiences, and
there are mistakes that have been made in the past," he says. "Whereas if you are fresh
and new, you have a clean slate."
Still, a debate rages in the business departments of many Internet companies over the
importance of branding. How much effort should they spend on e-branding initiatives —
that is, building up an online brand? Wouldn't those resources be better spent promoting
e-commerce efforts, which offer tangible returns?
Although people are shopping online, only a percentage of them are actually buying
online. According to Intelliquest, there are four times as many online shoppers as
purchasers. But it is always important to look toward the future. Companies that form
strong associations between their name and their category now will be the ones who will
capture future sales.

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In short, e-branding is very important and must be taken into consideration. John Lynch,
from Synnetry, an online marketing firm says, "Sites need to be branded so that the
consumer can have confidence in the site and is willing to make a purchase there."
Some tactics to build an online brand include:
1. Selection and speed -- Online brands don't usually tout themselves as cheap. The main
benefit is that they are going to be fast, and they will have a large selection. "Their brand
is: you want it, we got it and we will get it to you quick. Prices are not as important,
service is not as important [at the moment]. Really, selection and delivery are their
brand," says Kosgrove.
That tactic is certainly true with large online stores such as Amazon, "The World's
Largest Bookstore." The company can't offer the warm, friendly environment that
Borders can, says Kosgrove, but they can promise to ship you the book of your choice
practically overnight.
2. Customization -- Another way that brands can differentiate themselves is by providing
online customized solutions and products for visitors based on information that they plug
into registration forms.
The Web allows companies to take on new edge or benefit that a company would not be
able to use in the real world. For instance, a pet food brand on the store shelf does not
have many choices about the positioning of its product. Online, however, a company can
brand itself as more than just a dog food supplier, but rather as an animal nutrition expert,
says Lynch. The site can walk visitors through a personalized analysis based on the
animal's needs and activity level.
Once the information is entered into the database, answers are compressed, data is cross
referenced, and information telling you which formula of food your pet should be
consuming is spit out. "Then it isn't just a bag of dog food, but nutritional care for your
animal," says Lynch.
There is no way that a pet food company would be able to gain that brand identity in the
real world. "What pet store owner is going to carry that message for the ped information
telling you which formula of food your pet should be consuming is spit out. "Then it isn't
just a bag of dog food, but nutritional care for your animal," says Lynch.

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There is no way that a pet food company would be able to gain that brand identity in the
real world. "What pet store owner is going to carry that message for the pet food
manufacturer to the pet food buyer?" asks Lynch.
"Through the Internet, they are allowed to create a better position for themselves than
they could if they were going through regular distribution channels."

3. Using Interactivity -- Creating services that other Web companies don't have will
ensure that your brand is stronger than the rest. Luckily, the Web is the perfect place to
do just that. Unlike other media, online customers can interact with the brand and its
identity in a way that no other medium can offer.

Ways to increase contact and keep your brand in front of people include creating:

• Newsletters
• Targeted emails
• Message boards
• Chat
• Advice columns

4. Build a community -- Community is the other buzz online. If your brand can stimulate
a community around it, then it has a powerful ally. For a community to be successful, you
need to have a category that will engage people and spur them to want to talk with one
another. For instance, people seem to never tire about the wonders of the Apple
computer. The company's brand is the focus of debates and discourses in the computer
world. Customers, prospects and critics of the brand have strong opinions about what
they like and don't like, which leads to many opportunities for community interaction.

Some other points to keep in mind when building an online community include:

 Members must share common interests and get satisfaction from connecting with
others
 Members should be able to participate in something such as a forum, chat group,
auction, or join mailing lists or user groups

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  Give members something to care about by establishing a clear economic or social
benefit; personalize user experience through interactivity with other members and
develop opportunities for common leadership/ownership;
 Encourage early and steady contributors.
5. Form Strategic Alliances -- Like co-branding, strategic partnerships between Web
brands can help strengthen identity, enhance visibility and increase revenues for
companies.
"If someone comes to your site and sees you link with other people that they respect, they
are going to feel good about being on your site," says Kosgrove. Good alliances on the
Web allow traffic to flow between sites that have a common interest.
One way that synergistic sites can partner is by swapping banner ads. "If your site sells
ties, it would be good to form a relationship with a store that sells shirts. Anyone who
buys a shirt is going to want to buy a tie," says Lynch. "Synergistic sites can swap banner
ads usually without any fee being paid."
Another way that E-retailers can create partnerships is by finding larger content sites to
sell their wares. Williams says that when shopping for strategic partners, Big Star looks
for companies that have an active relationship with their members and are willing to get
Big Star involved. It's important to find partners who are going to help promote our site,
says Williams. Women.com is one site that fit the bill. "We advertise in their
entertainment areas, and we are often a featured vendor there. We also have fitness videos
in their health and wellness area and children's videos in their family areas."
Besides that, Women.com will also send a heads-up to subscribers telling them about
movie promotions that Big Star is running exclusively for Women.com members.
One of the best ways that an e-commerce site can partner with other sites is to embed
themselves within another company's site. For instance, each time you purchase a
package from an e-retailer, chances are that you are also giving business to UPS or
Federal Express. Both shipping companies invite companies to use their software to
calculate shipping weights and secure deliveries to the purchaser's home. Federal Express
also allows catalog companies like Lands End to move Federal Express data to their own
Web sites so that Lands End customers can track their packages' progress.

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Dell Computer Corp. partners with smaller computer dealers online to let customers
configure their own computers. It may look as if you are on Joe's Computer Shack Web
site, but actually Dell has lent Joe software so customers can customize their PC. "The
best sites in the world, in terms of traffic and selling, are the ones that you don't even
know that you are going to," says Lynch. "You are not spending all the promotion money,
and you are multiplying your promotional money by many times because you have other
people who are trying to get people to go to their site who in turn are at your site.

6. Building credibility -- Since competition is only a few clicks away, the standard for
customer support must be higher for the Web than it is in the off-line world. The most
essential aspect of customer support on Web sites is to respond to every request for
information with accurate answers or corrective actions within competitive time frames.
"If your other communications look warm and friendly and you brand yourself as service-
oriented, but your Web sight is impossible to navigate and doesn't have an email
response or is just kind of clunky, people are going to say, 'I thought you were someone
else but now I know who you really are'," says Kosgrove.
So be sure you do your homework about what goes into a strong Web site. This is of the
utmost importance when you are building a new brand or bringing a new brand to the
online arena. Some of the basics that your Web site should have include:

• Personal Domain Name

• Contact Information
• Simple site design and navigation
• Easy to identify prices, if applicable
• Quick server response

7. Dedication to Service - Online customers have little opportunity to see your brand's
dedication to service. If your customer service skills aren't up to par, however, it's likely
that a customer won't come back to interact with your brand or your site.
Despite that logic, market watcher Jupiter Communications found that 42 percent of the
top-ranked Web sites either took longer than five days to reply to customer email
inquiries, never replied, or were not accessible by email.

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 "This effort illustrates that many Web sites have been unable or unprepared to respond to
the flood of user questions that come in via email from their sites," says Ken Allard,
group director of Jupiter's Site Operation Strategies. "Answering thousands of questions
per month is an enormous challenge for sites offering complex products and services,
especially if they never had a traditional call center. Yet companies that delay responses
to user questions instantly lose a significant degree of credibility and user loyalty, and not
responding perpetuates the consumer notion that using the Web site is not a reliable
method of doing business with that company."
One way to solve the email deluge is to take advantage of "auto-acknowledge" software
that responds to all incoming requests stating that the question was received and estimates
a time frame for how long it will take to respond to the question.
While email is the primary communication tool, it is not the be-all, end-all of customer
service. Companies that want to attach a sense of dedication to their brand should think
about having a call center, support staff or other communication tools that will help
strengthen the relationship between your brand and customer.

3.4 Consumer Decision Process

Consumer behaviour can be defined as the decision-making process and physical
activity involved in acquiring, evaluating, using and disposing of goods and services.
This definition clearly brings out that it is not just the buying of goods/services that
receives attention in consumer behaviour but, the process starts much before the goods
have been acquired or bought. A process of buying starts in the minds of the consumer,
which leads to the finding of alternatives between products that can be acquired with their
relative advantages and disadvantages. This leads to internal and external research. Then
follows a process of decision-making for purchase and using the goods, and then the post
purchase behaviour which is also very important, because it gives a clue to the marketers
whether his product has been a success or not.
To understand the likes and dislikes of the consumer, extensive consumer research
studies are being conducted. These researches try to find out:

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  What the consumer thinks of the company’s products and those of its
competitors?
 How can the product be improved in their opinion?
 How the customers use the product?
 What is the customer’s attitude towards the product and its advertising?
 What is the role of the customer in his family?
Consumer behaviour is a complex, dynamic, multidimensional process, and all marketing
decisions are based on assumptions about consumer behaviour.

Fig. A simplified framework for studying consumer behaviour

The process of decision-making varies with the value of the product, the involvement of
the buyer and the risk that is involved in deciding the product/service.
The figures show the consumer life style in the centre of the circle. The consumer and his
life style are influenced by a number of factors shown all around the consumer. These are
culture, subculture, values, demographic factors, social status, reference groups,

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household and also the internal make up of the consumer, which are consumer’s
emotions, personality, motives of buying, perception and learning.
Consumer is also influenced by the marketing activities and efforts of the marketer.
All these factors lead to the formation of attitudes and needs of the consumer.
The decision-making process consists of a series of steps which the consumer undergoes.
First of all, the decision is made to solve a problem of any kind. This may be the problem
of creating a cool atmosphere in your home.
For this, information search is carried out, to find how the cool atmosphere can be
provided, e.g. by an air-conditioner or, by a water-cooler. This leads to the evaluation of
alternatives and a cost benefit-analysis is made to decide which product and brand image
will be suitable, and can take care of the problem suitably and adequately. Thereafter the
purchase is made and the product is used by the consumer. The constant use of the
product leads to the satisfaction or dissatisfaction of the consumer, which leads to repeat
purchases, or to the rejection of the product.
The marketing strategy is successful if consumers can see a need which a company’s
product can solve and, offers the best solution to the problem. For a successful strategy,
the marketer must lay emphasis on the product/brand image in the consumer’s mind.
Position the product according to the customers likes and dislikes. The brand which
matches the desired image of a target market sells well.
Sales are important and sales are likely to occur if the initial consumer analysis was
correct and matches the consumer decision process. Satisfaction of the consumer, after
the sales have been affected, is important for repeat purchase. It is more profitable to
retain existing customers, rather than looking for new ones. The figure below gives an
idea of the above discussion.

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 Fig. Decision Process

Fig. Creating Satisfied Customers

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 CHAPTER-4
Research Report

TITLE:

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To study the “Advent of LCD TVs and their future prospects in India”.

TITLE JUSTIFICATION:
The study mainly deals with studying the response of Indian market towards the
introduction of LCD TVs. The project also deals with the future prospects of LCD TVs in
India. On the basis of the study we can formulate the marketing strategy that can be
implemented to increase the demand and sales of LCD TVs in the market.

OBJECTIVES OF THE PROJECT:

• To analyze the LCD TV Market of North Delhi.
• To analyze the factors influencing the customers to choose a particular brand of
LCD TV.
• To know the customers view towards LCD TV of different brands.
• To formulate the marketing strategy for increasing the sales of LCD TV in the
market.

RESEARCH METHODOLOGY:

Research methodology is considered as the nerve of the project. Without a proper well-
organized research plan, it is impossible to complete the project and reach to any
conclusion. The project was based on the survey plan. The main objective of survey was
to collect appropriate data, which work as a base for drawing conclusion and getting
result.

Therefore, research methodology is the way to systematically solve the research problem.
Research methodology not only talks of the methods but also logic behind the methods
used in the context of a research study and it explains why a particular method has been
used in the preference of the other methods.

The Research is Exploratory Research. In the present Research data has been collected
from 50 dealers.

SAMPLE SIZE:

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50 dealers.

SOURCE OF INFORMATION:

Primary Data is used.

SAMPLING METHOD:

Percentage Method.

SAMPLING PROCEDURE:
Open and Close Ended Questionnaire are used.

SAMPLING TECHNIQUE:
Convenient Sampling Method.

METHOD OF DATA COLLECTION:

Questionnaire Method has been used.

LIMITATIONS OF STUDY
• The respondents were limited and cannot be treated as the whole population.
• The dealers may be biased.
• Time was the major constraint.
• The accuracy of indications given by the respondents may not be consider adequate.

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 CHAPTER-5
Data Analysis and Interpretation

On the basis of the survey conducted in North Delhi on LCD TV the following analysis
and interpretation has been obtained:

1. Market Share of different Brands of LCD TVs in North Delhi:

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 Brand Share
Samsung 36%
LG 20%
Sony 16%
Sansui 6%
Panasonic 6%
Videocon 10%
Haier 2%
Philips 4%

Interpretation:
Samsung is having the maximum market share in North Delhi in case of LCD
TVs.
2. Market Share of Different Brands of Colour Televisions in North Delhi:

Brand Share
Samsung 46%
LG 28%

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 Sony 4%
Sansui 2%
Panasonic 2%
Videocon 12%
Markson 2%
Philips 4%

Interpretation:
Samsung has the highest market share in North Delhi in case of CRT TVs.

3. Percentage Share of Different sizes of LCD TVs in the market:

Size 19/20 inches 26 inches 32 inches 40/42 inches

Percentage 31.20% 33% 30.30% 5.50%
Share of
Different size
of LCD TV

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 Interpretation:
26 inches LCD TV is most sold in North Delhi with around 33% of the total
customers buying this size of LCD TV.

4. Various Criteria for choosing a particular Brand of LCD TV by the customer:

Criteria for Number of

choosing a Dealers
particular
Brand of LCD

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 TV
Brand Loyalty 20
Price 11
Mixed Criteria 18
Product 01
Innovation

Interpretation:
This chart shows that the Indian Customers are Brand Concious. 20 of the total
dealers feel that customers buy a product keeping in mind some particular brand.

5. Factors governing the demand of LCD TVs in the market:

Factors governing the demand of LCD Percentage

TVs
Price Reduction 62%
Awareness Campaigns 28%

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 Advertising 8%
Technical Advantages 2%

Interpretation:
A major portion feel that price reduction will help companies to increase there
sales of LCD TVs in the market.

6. Share of different customers according to the income group they belong to:

Income Group Lower Income Middle Income Upper Income

Group Group Group
Share Percentage 25.40% 49.80% 24.80%

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 Interpretation:
The middle income group is the major buyer of LCD TVs in North Delhi.

7. Most common size purchased by Lower Income Group = 20 inches.

Most common size purchased by Middle Income Group = 26 inches.
Most common size purchased by Upper Income Group = 32 inches.

8. The price comparison of various Brands of LCD TVs available in the market is as
follows:

Brand 19 inches 20 inches 22 inches 26 inches

Samsung Rs. 14042 Rs. 15362 Rs. 23274

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LG Rs. 13016 Rs. 15120 Rs. 23542
Sony Rs. 14943 Rs. 29779
Haier Rs. 20500
Panasonic Rs. 22600
Sansui Rs. 12063 Rs 13900 Rs. 22340
Philips Rs. 27450
Toshiba Rs. 22000
Onida Rs. 12990 Rs. 14200 Rs. 17800
Videocon Rs. 13910 Rs. 22529
Hyundai Rs. 9990
Markson Rs. 14200 Rs. 19700

Brand 32 inches 40 inches 42 inches

Samsung Rs. 33712 Rs. 57617
LG Rs. 33131 Rs. 55785 Rs. 60426
Sony Rs. 36460 Rs. 60100
Haier Rs. 34500
Panasonic Rs. 30562
Sansui Rs. 28320
Philips Rs. 33600
Toshiba Rs. 29500
Onida Rs. 28233 Rs. 54300
Videocon Rs. 29930 Rs. 53800
Hyundai
Markson Rs. 24700 Rs. 54990

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90
Interpretation:
Hyundai LCD TV is having the least price in the 19 inches range.

Except Haier all other Brands have almost equal price for a 20 inch LCD TV.

Only two companies are manufacturing 22 inches LCD TVs and LG’s LCD TV is
cheaper in comparison with Samsung’s LCD TV.

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Interpretation:
The price range offered by Markson is least in case of a 26 inches LCD TV.

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Interpretation:
Markson LCD TV is the cheapest in comparison with other LCD TV brands in 32 inches
segment.

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Interpretation:
Videocon is offering its 40 inches LCD TV at the least rate in comparison with
others.

Interpretation:
Markson’s LCD TV is very cheap in comparison with LG in 42 inches LCD TV
segment.

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 9. Various advantages because of which customers choose LCD TV over CRT TV:

Main Advantage of LCD TV Share

Image Clarity 88%
Multi functionality 8%
Easy to handle 4%

Interpretation:
Image Clarity is major advantage which people consider while buying a LCD TV.

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10. The features available in various brands of LCD TV( size=32 inches) are as follows:

Features Samsung LG Sony

Full HD/HD ready Both models Both models Both models
available available available
HDMI 4 HDMI 2 HDMI 4 HDMI
Motion Flow 100 Hz 100 Hz 100 Hz
Colour Wide Colour 1.3 Deep Colour Live Colour
Enhancer
Picture Processing 10-bit 10-bit 10-bit
USB Playback Yes(JPEG only) Yes(DivX only) Yes(some models)
Contrast Ratio 50,000:1 to 60,000:1 to 20,000:1(stopped
1,00,000:1 80,000:1 displaying)
Response Time 2.4 ms to 4 ms 4 to 5 ms 4 ms
Power 150- 180W 125-150W 115-145W
Consumption
Audio Output 24-30W(RMS) 24W(RMS) 20W(RMS)
Brightness 500cd/m2 500cd/m2 500cd/m2
FM Radio Yes No Yes
Bluetooth No Yes No
Connectivity
Hard Drive No No No

Features Onida Videocon Sansui

Full HD/HD ready HD ready Both Models HD ready
available
HDMI 2 HDMI 2 HDMI 2 HDMI
Motion Flow -- -- --
Colour -- 16.7 million 16.7 million
display colours display colours
Picture Processing -- -- --
USB Playback No No No
Contrast Ratio 30,000:1 30,000:1 to 30,000:1
50,000:1
Response Time 8 ms 5 ms 6.5 ms
Power 180W 160W 160W
Consumption
Audio Output 400W(PMPO) 20W(RMS) 20W(RMS)
Brightness 500cd/m2 480cd/m2 500cd/m2
FM Radio No No No
Bluetooth No No No
Connectivity
Hard Drive No Yes No

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 Features Panasonic Philips Haier
Full HD/HD ready HD ready HD ready HD ready
HDMI 2 HDMI 2 HDMI 3 HDMI
Motion Flow 100 Hz 100 Hz --
Colour -- 29.8 Billion --
Colours
Picture Processing -- 8-bit --
USB Playback SD card slot No Yes
Contrast Ratio 10,000:1 33,000:1 15,000:1
Response Time 8 ms 8.5 ms 6.5 ms
Power 160W 130W 160W
Consumption
Audio Output 20W(RMS) 30W(RMS) 20W(RMS)
Brightness 450cd/m2 500cd/m2 450cd/m2
FM Radio No No No
Bluetooth No No No
Connectivity
Hard Drive No No No

Features Toshiba Markson

Full HD/HD ready HD ready HD ready
HDMI 2 HDMI 1 HDMI
Motion Flow 100 Hz --
Colour Real Colour --
Algorithm
Picture Processing 10-bit 8-bit
USB Playback No Yes
Contrast Ratio 4,500:1 10,000:1
Response Time 8ms 16 ms
Power 140W 150W
Consumption
Audio Output 20W(RMS) 30W(RMS)
Brightness 500cd/m2 500cd/m2
FM Radio No No
Bluetooth No No
Connectivity
Hard Drive No No

Interpretation:
The comparison suggests that Markson needs to enhance its features to beat the
competitors in the market.

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 CHAPTER-6
Observations and Findings

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 Observations and Findings

• The market share of different LCD TVs indicate that Samsung is emerging as a
great Brand in the Indian market.
• Samsung has made a good name in case of sales of CRT TVs as well.
• Keeping there room size in mind, 26 inch LCD TV is most preferred by the Indian
customers.
• Brand Loyalty plays a vital role among Indian customers while buying the LCD
TV.
• Price reduction and awareness campaigns can help a company to increase the
demand of LCD TVs in the market.
• Around 50% of the total sale of LCD TV is because of the middle income group
and they usually purchase a 26 inches LCD TV.
• The competition is only between LG and Samsung for a 22 inches LCD TV.
• Markson is offering its LCD TVs at a very cheap rate in comparison with all other
brands available in the market.
• Image clarity is the major reason why people go for LCD TV instead of a CRT
TV.
• HDMI ports, contrast ratio, response time and power consumption are the primary
specifications about which the customers ask for.
• USB playback, FM radio, Bluetooth connectivity and hard drive are the secondary
features which the customers want to have in the LCD TV.
• Samsung is offering very good features at a very reasonable rate rite now.

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 CHAPTER-7
Conclusion and Strategy

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7.1 Conclusion
This project helped me tremendously in knowing how marketing activities are carried
out in a real situation. In classroom lectures, I was able to understand only the
theoretical work but now I have the practical experience about the marketing
activities. The prospects of LCD TV market are quite bright in the near future. And a
proper marketing strategy can help a company to take the maximum advantage of this
emerging trend. The proper selection of the marketing mix, Branding strategy and
study of Consumer Behaviour can take a company to the new heights.

7.2 Proposed Marketing Strategy

 The following changes in the product features can help Markson to improve
its LCD TV sale in the market.
1. Increase its HDMI interface ports to two or three in number.
2. Launch 32 inches and 42 inches LCD TV with high resolution and Full
HD specification.
3. Increase the contrast ratio to about 35,000:1.
4. Picture processing needs to be increased to 10-bit processing.
5. Motion Flow and colour gamut specifications need to be displayed.
6. Response time needs to be decreased to 4-6 ms.
7. Bluetooth, FM radio and inbuilt Hard Drive option can also be added.

 The following points need to be considered while deciding on the distribution

network:
1. We need to have more distributors in North Delhi for LCD TVs. Our old
distributors do not have Markson LCD TV in their show rooms to sell.
2. The distributors need to be trained on how to market our LCD TVs.
3. Special additions on profits earned by distributors can be provided by the
company to increase the sales of LCD TVs.

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 4. Financial Schemes on LCD TVs can also help us to increase the sale of
LCD TV as we do not have to reduce our profits and less cash flow will be
needed by the customer.
5. A combo offer or a discount offer for old colour TV can be of great help to
increase the sale of LCD TV.

 As I surveyed through the market I found out that all dealers are expecting that
prices of LCD TVs will continue to crash till Diwali so I think that we should
reduce the prices of LCD TVs so as to remain competitive.

 Now coming down to promoting, all of us know that advertising plays a vital
role in creating awareness among the customers about the product. So I think
that following points should be considered for advertising LCD TVs:

1. Use fundamental colours like Black, Red and Blue while preparing the
pamphlets and brochure. These types of colours hit the customers
psychologically.
2. Place the company ad banners at various metro stations and also in the
metros as well.
3. Select one or two models for these ad banners and pamphlets so as to
target Young India. No need to have actor/actress as a brand ambassador.
4. Try to sponsor events such as annual functions of the companies and large
gatherings.

 Almost 50% of LCD TVs are purchased by customers belonging to middle

income group and 26 inches LCD TV is commonly bought by them and 25%
of LCD TVs are bought by lower income group of 19/20 inches in size. So, I
think that a 22 inches LCD TV can cater for both the income groups well. So,
I suggest that the company should launch a 22 inches LCD TV in market.

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 I also analyzed that Brand Loyalty is the main criteria among customers
for choosing a particular brand of LCD TV. So it is very important to develop
the Brand Image in the market. It can be done in the following way:

1. Brand Logo: I think that we need to change our Brand Logo from British
Flag to something else. I think that it is very difficult for Indian minds to
adopt any product which is associated with British People. The two
suggested Logos by me are as follows:

Observe carefully: The person is enjoying the music.

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 Metallic M represents that our effect is everlasting.
2. Brand Slogan: Brand Slogan tells that what the company is aiming for. It
should be such that the customer feels that he is a part of the process. Two
such slogans which can help the company are as follows:
A) Selling satisfaction not products.
B) Making life pleasant and enjoyable.
C) Bringing colours of life together.

3. Brand Personality: We should select a brand personality as such which hits

the minds of the Young India (25-40 years of age group). This age group
holds the maximum buying capacity, so choose a brand ambassador who
represents the Image of Young India.
4. A Free Toll number also gives an indication of the brand. It gives a signal
of good infrastructure of the company.

I think that if we will adopt this kind of marketing strategy for LCD TVs then we will
definitely be able to capture a significant part of Market Share in the near future.

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 CHAPTER-8
BIBLOGRAPHY

105
References:
 Marketing Management by Philip Kotler.
 http://www.cci.in/pdf/surveys_reports/consumer-durables-sector.pdf
 www.rncos.com/Report/CP13_toc.htm
 www.wikipedia.com
 www.en.kioskea.net
 http://www.emsnow.com/npps/story.cfm?id=27593
 www.scribd.com
 www.indianmba.com
 www.markson.in

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