Business Daily from THE HINDU group of publications
Tuesday, Apr 24, 2007
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Business Daily from THE HINDU group of publications Tuesday, Apr 24, 2007 ePaper |
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Marketing
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Strategy Sanyo-BPL falls short of revenue, CTV sales target K. Giriprakash
Bangalore April 23 Sanyo-BPL is betting big on its slim TVs to push its sales this fiscal even as it fell short of its targets during its comeback year in 2006-07. Sources in the company told Business Line that during 2006-07, the joint venture had targeted Rs 450 crore in revenues and sell about six lakh colour television sets. But it fell short of the revenue target by nearly 29 per cent while it sold nearly 33 per cent less number of CTVs. One of the major reasons for shortfall in targeted growth was because the market for CTVs during 2006-07 was nearly flat. Also, reduction in raw material costs by seven per cent - eight per cent resulted in companies reducing the prices of CTVs by a similar percentage. Sources said that the company expects to promote its range of slim TVs aggressively. Slim TVs are called so because in terms of depth they are at least 30 per cent lesser and hence occupy less space and are technologically superior to most other televisions sets in the market. For example, the size of a 29-inch slim TV is the same as that of a regular 14-inch television set. "The big differentiator between us and competition is going to be our range of slim TVs," a source in the company said. For Sanyo-BPL, its comeback year of 2006-07 did not turn out to be as expected as it just fell short of the target of achieving five per cent market share. The joint venture company ended up with a share of about 3.8 per cent - 3.9 per cent. For the current fiscal, Sanyo-BPL expects its market share to touch six per cent. The joint venture has also earmarked about Rs 20 crore towards brand marketing this fiscal. The joint venture, in which both Sanyo as well as BPL have 50:50 per cent stake each, expects that the current fiscal could see big growth for slim TVs as their prices have also reduced considerably during the last one year. Nationally, slim TVs have a two per cent market share while Sanyo-BPL has a four per cent market share in the category. Globally slim TVs have been outpacing the growth of flat TV sales. The company has also been able to fine-tune its pricing strategy since the launch of its products including washing machines and refrigerators last year.
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