Business Daily from THE HINDU group of publications
Thursday, Oct 25, 2007
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Thursday, Oct 25, 2007 ePaper | Mobile/PDA Version |
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Marketing
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Strategy Web Extras - Retailing Videocon bullish on tie-ups with retailers
Purvita Chatterjee Mumbai, Oct. 24 Videocon Industries is targeting a sales turnover of Rs 250 crore from modern trade after signing a series of MoUs with retailers. “We have been assured business from the modern trade retailers such as the Future Group, Spencer’s and even our own format, Next,” says Mr Shekar Jyoti, Vice President-Marketing, Videocon Industries. For instance, the Future Group (Home Solutions) and Spencer’s Retail have assured Rs 10 crore sales each for its consumer durable business. “Through the MoUs that we have signed, there is fixed assurance of business generated and we expect Rs 20 crore sales from Future Group and Spencer’s alone.” Besides, in the recent past, Videocon has also made pacts with new retailers such as Reliance Digital to give a boost to its durables business. “We have already recorded business worth Rs 196 crore from modern trade and expect it to go up to Rs 250 crore before the year ends,” added Mr Jyoti. Volume drawFocussing on the festive season, Videocon is using modern trade to help display its premium products such as LCD televisions, automatic washing machines and frost-free refrigerators. “Modern trade does bring in volume and value to our business. After all, they can help sell our brand and we can both support each other with our services,” says Mr Jyoti. Videocon is looking at the premium end of the colour television market with a new LCD sub brand — Time Engine. “Today we can source quality technology from our research centres in China and Korea. The LCD market is wide open and our technology compares to what Samsung and LG is offering. Our new brand of LCD televisions would be competitively priced,” says Mr Jyoti.
Videocon has a 21 per cent share in the LCD segment with its Integra brand, after Samsung and LG. The company is looking forward to the festive season, says Mr Jyothi. “Videocon is targeting a growth at 35% over last year and a turnover of Rs 500 crore. We are investing Rs 40 crore on advertising and promotions with several activities for the consumer under our Diwali Dhamaka offer.” For instance, the company is planning to sell about 5 lakh colour televisions during this season with new features such as LCDs with in-built 80GB hard disk capable of 50 hours of recording, and LCDs with cinema surround 1000W PMPO sound output. More Stories on : Strategy | Home Appliances | Retailing
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