TCL: As we know that OEM’s have limited control

TCL: The Creative Life

 

TCL
is one of China’s most innovative and resourceful consumer durable enterprises Founded in 1981. In 36 years of
business journey it has-

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

 

Ø  It has 20 manufacturing plants, 60,000
employees & more than 40 sales offices around the globe.

Ø 
They have 18 Research & Development wings & centralized
supply chains

Ø 
In 2011, the brand value of TCL had exceeded $8 billion

Ø 
TCL is China’s largest global scale consumer electronics
group

Ø 
TCL owns and sells Thomson televisions and Alcatel mobile
phones worldwide under the TCL umbrella including TCL’s own television sets and
mobile phones as well

 

RECENT MARKET TRENDS OF TCL IN INDIA:

Ø  TCL’s LCD TV sales have seen a staggering upsurge. In
sales figures, for the first half of 2017, its LCD TV sales volume increased by
12.2% to 9,603,392 sets, out of which sales volumes of smart TVs and 4K TVs
increased by 49.8% and 45.6% to 6,119,663 sets and 2,226,920 sets,
respectively. 

 

STRATEGIES TO KEEP DEALERS MOTIVATED:

1.     
OFFER
EXCLUSIVE TERRITORIES TO EXISTING DEALERS:

 

Ø  TCL
should work on giving territories to the existing Dealers & also work on
expanding dealer base in different regions.

Ø  TCL sales force must focus their energy on high
performers and ensure the market isn’t oversaturated or too competitive.

Ø  Make
the Dealers feel privileged by giving them offers over & above Margins on
having achieved their targets.

Ø  For a dealer-friendly approach, TCL should offer its
existing dealers larger, exclusive territories in exchange for greater
promotion and display of TCL products.

 

2.      IMPROVE TRAINING RESOURCES

 

Ø  As we know that OEM’s have limited control over their
dealers’ management policies, while giving training to dealers’ staff, they can
share best sales practices and training resources for a mutually beneficial
relationship.

Ø  Since the dealer’s salespeople serve as the OEM’s
brand ambassadors, training can be a critical tool in helping dealers attract
and retain top talent, turning their sales force into brand champions.

Ø  In a competitive scenario, Motivated and well-trained
dealers are always better equipped to help customers understand the advantages,
USP & unique performance qualities of any Enterprise.

 

3.      SETTING UP ONE TO ONE RELATIONSHIP WITH THE DEALER:

 

Ø  TCL should try to truly build and increase Company-dealer
relationships which is helpful in having a point of contact to look after a
specific region Example: District sales Manager etc.

Ø  Big Players in FMCD segment like LG, Sony &
Samsung promise their dealers to offer a high degree of personal attention from
a deployed District Sales Manager in the area and have a timeline of 24-hour
response guarantee.

Ø  Field sales representatives also maintain regular
communication with the dealers and keep them aware of any new products and
resources available at their disposal. Also, it would be icing on cake if Dealers
come with questions or feedback for company.

 

4.      TRUST WORTHY SERVICE CENTRES:

 

Ø  When products break, dealers need instantaneous access
to part and repair information. By providing a centralized, electronic portal
of repair manuals, instructional videos, maintenance advice, and parts information,
OEMs can help dealers service their customers’ equipment quickly and
efficiently.

Ø  By making these resources readily available for
service persons it will increase dealer productivity and profits and can add to
customer Delight which can generate high customer satisfaction.

 

RE-BRANDING
TCL IN INDIA:

5.     
Out of
two types of Rebranding TCL should focus on-

Ø  Proactive rebranding- TCL should recognizes that there is an
opportunity to grow, innovate & tap into the new businesses environment
& new customers, it must try to reconnect with its potential customers.

 

6.     
DIGITAL MARKETING:

 

Ø  A dedicated digital media team should Create a video
& spread it across all digital platforms. i.e. Facebook, Instagram,
WhatsApp, Line, etc. because if they create
a well thought out video as to why customers need that TV, Needless to say it
would catch Customers attention & this could be a good way to get through.

 

 

 

7.     
2017-2018
GLOBAL TOP 50 CE BRANDS WINNER:

 

Ø  After having won the award by International Data
Group (IDG), TCL must flaunt its achievement in establishing its brand equity
in market by Advertisements.

 

8.     
FLAUNTING FLAGSHIP PRODUCT:

 

Ø  TCL must acknowledge about its flagship model QLED TV,
85-inch X6 about winning & about
the stunning picture quality because of Quantum Dot display technology, HDR and
Dolby Atmos sound system.

 

ADOPTING
RED OCEAN STRATEGY TO GAIN MARKET SHARE:

 

9.     
SEGMENTATION
IN DIFFERENT TV SIZES:

 

Ø  TCL
should have the maximum focus on 32-42-inch segment, which alone accounts for
over 55% of the Indian TV market.

Ø  “The
television industry in India is going the smartphone way and more price war may
erupt”.

Ø  TCL
should be ready to face tough competitions from big players like LG, Samsung
and Sony & make strategies to gain competitive advantage over rivals in
Indian market.

Ø  They
together control around 80% of the Indian LED TV market.

VARIETY
AND MODELS OF TV OFFERED BY TCL.

S.No.

TV
Segment

Size

Price
range

1

SLIM
LED TV

32
Inches

Rs
14000

2

——-“——–

40
inches

Rs
21000

3

4K
ULTRA HD SMART TV  

43
Inches

Rs
32000

4

——“——–

55
inches

Rs
49000

5

CURVE
FULL HD SMART TV 

48Inches

Rs
38000

6

C2US
UHD ANDROID

55
Inches

Rs
64000

7

——“——–

65
Inches

Rs105000

Note: Out of 21
Dealers in India, 19 are in Tamilnadu, only 1 is in Karnataka & rest 1 is
in Maharashtra.

·        
No of dealer in
Bangalore currently- 1

·        
No of service centers
in Bangalore- 1

 

10.  BECOMING PRICE WARRIOR:

 

Ø  In
past one year, apart from TCL, brands like Sanyo, LeEco, and Polaroid &
Kodak have also entered the Indian market & have become price warriors.

Ø  Local
handset makers such as Micromax and Intex have also decided to focus more on
the television and appliances market because of facing tough competition by Chinese
companies in smartphones segment.

 

11.  SEGMENTATION
OF CUSTOMERS IN BANGALORE

1)      TCL0is0offering TVs with
different features, sizes, combination and prices & is targeting customers
from various segments.

2)       SLIM LED is the low priced TV which is
targeted towards people of lower income group, students, bachelor
accommodations with more number of rooms, small and medium  level Restaurants, hotels, hospitals,
government offices, etc.

3)      The
next variants of TCL TV which is “FULL HD SMART TV” which is 48 Inches is
priced at nearly Rs 38000 and “4K ULTRA HD SMART TV” which is 43 Inches & priced
at Rs32000 are targeted towards medium income group with annual income of
3lakhs to 4 lakhs, hotels, restaurants, corporate offices, game zones etc.

4)      The
larger size and best latest feature variant “C2US UHD ANDROID with 55 & 65 inches
is priced between Rs64000 & Rs105000 is targeted towards the higher income
group segment, large corporate offices, luxury hotels, common entertainment
halls, malls, etc.

5)      Focusing
on selling more of smart televisions of medium range is the best current market
for TCL in Bangalore as it comprises about 60-70% of the television market in
the current scenario and upcoming future.

 

 

 

12.  STRATEGIES
TO INCREASE ROI OF EXISTING DEALER AND INCREASING DEALER BASE TO EXPAND THE
MARKET.

1)      Setting
up attractive incentive plans in form of holiday package on achieving sales
target by the dealers. This will motivate my dealers to sell more of TCL TVs
than of the competitor brands.

2)      Maintaining
competitive pricing so that dealers can pitch in more sales of different
variants.

3)      Setting
up sales discount plans for the dealers if they achieve certain target to
increase sales within stipulated time so that dealers earn more margins and
pitch more sales of TCL TVs.

4)      Advertising
through TV, newspaper and holding ads in Bangalore area along with the
exclusive dealer details will motivate the dealer towards TCL as this saves his
local advertising cost and increases his ROI.

5)      Setting
up sales force to bring on board more of local dealers in Bangalore market and
also to collaborate with multi brand outlets like CROMA, E-ZONE, BIGBAZAAR,
RELIANCE DIGITAL, etc.

6)      Promoting
Dealers to open exclusive showrooms and set up more service centers so that
better after sales service can be offered in Bangalore region to get the
competitive edge over other rival brands. Offering better after sales service
and having exclusive showroom will build direct trust of the customers on the
brand.

7)      Campaigning
and sponsoring sports and social events in Bangalore such as college fest,
music concert, football matches to create more brand awareness and invite more
sales through exclusive counters at exhibitions with the help of local dealers
and sales force.

STRATEGIES TO INCREASE CUSTOMER BASE:

 

13.  EXTENSIVE MARKETING:

Ø  TCL, India can come up with a marketing campaign by
publishing advertisements in newspapers or televisions including dealer’s
information at the bottom hence promoting our own brand and indirect promotion
of the dealers.

Ø  Apart from the price factor, promoting the product
features by comparing it with similar products of other companies in the market.

 

 

 

In a comparison between TCL, SAMSUNG, LG &
PANASONIC for a 55inch LED TV, we found out that

1.     
As compared to other TCL provides ultra slim tv

2.     
TCL tv are smart tv segmented as compared to others

3.     
Apart from these, there is no other significant difference in all the
tvs, yet TCL priced its product at 49000 while the others are above 1 lac

Source: https://www.gadgetsnow.com

 

14.  PROMOTIONAL OFFERS:

Ø  By clubbing mid-range tv with TCL move bands for
attracting young crowd of Bangalore.

 

15.  SALES MIX:

Let us assume if 100 units are sold,

40 units are to be of SLIM LED TV

30 units must be of 4K HD SMART TV

Remaining 30 units could comprise of CURVED as well
as ANDROID TV

 

Therefore, 70% of the TV sold is low to mid-range
which generally contributes to about 30-40% of total sales revenue.

While the rest of the revenue is generated by the 30
% high end TV.

 

 

ROI MODEL

S.No.

Price
range

Margins

Dealer
profit on mrp

ROI
%

1

Rs
14000

5%

700

5.3%

2

Rs
21000

6%

1260

6.4%

3

Rs
32000

8%

2560

8.7%

4

Rs
49000

12%

5880

13.6%

5

Rs
38000

10%

3800

11.11%

6

Rs
64000

15%

9600

17.6%

7

Rs105000

18%

18900

21.95%

 

·        
By providing these margins on the given specific products, dealers can be
lured in.

·        
These margins include the overhead expenses for the dealers.

·        
Additional 10% discount on achieving desired sales target for a
particular variant.

·        
We can provide indirect advertisements for dealers by mentioning their
information in the ads published by TCL, India.

·        
For every 20 units of TV sold, one additional unit is sponsored by the
company.  

 

 

Assuming, for the 14000 variant, suppose 20 tv are
sold by a dealer, then

 

Profit on 20 tv =
20 * 700 = 14000

 

Hence, Rs 14000 profits on a low range variant and
similarly the profits increase for the higher end variants.

 

 

 

x

Hi!
I'm Marcella!

Would you like to get a custom essay? How about receiving a customized one?

Check it out