TCL: volumes of smart TVs and 4K TVs

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- 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 chainsØ 
In 2011, the brand value of TCL had exceeded $8 billionØ 
TCL is China’s largest global scale consumer electronics
groupØ 
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.      SETUP ONE-ON-ONE RELATIONSHIP: Ø  To truly build and deepen Company-dealer
relationships, it is always helpful to have a point of contact who should look
after a particular region Example: District sales Manager etc.Ø  FMCD companies like LG, SONY & SAMSUNG promise
their dealers a high degree of personal attention from a dedicated District
Sales Manager and have a timeline of 24-hour response guarantee.Ø  Not only that, field sales representatives also maintain
regular communication with dealers and keep them informed 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: DIGITAL
PLATFORMS: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.  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.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:

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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,” he added.

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.

BECOMING PRICE WARRIER:

Ø  In
past one year, apart from TCL, brands like Sanyo, LeEco, 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.

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

SEGMENTS
AND TARGET CUSTOMERS IN BANGALORE

1)      TCL
offering TVs of with different feature combinations, sizes and prices is
targeting customers from various segments.

2)       The low priced  “SLIM LED” version is targeted towards people
of  lower income group, students
,bachelor accommodations with number of rooms ,small and medium  level hotels, hospitals, government offices,
etc.

3)      The
next variants of TCL TV which is “CURVE FULL HD SMART TV- 48 INCHES” which is
priced at nearly  Rs38000 and “4K ULTRA
HD SMART TV -43 INCHES” which is priced at Rs32000 are targeted towards medium
income group with annual income of 3lakhs to 4 lakhs,  hotels, restaurants, corporate offices, game
zones.

4)      The
larger size and best latest feature variant “C2US UHD ANDROID –  (i) 65 INCHES (ii)55inches” 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 up coming
future.

 

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:

Ø  BY LAUNCHING NEW
PRODUCTS:

 

 

Ø  BY VALUE ADDITION TO
CUSTOMERS LIFE:

 

 

Ø  BY LAUNCHING GOOGLE
CERTIFICATED ANDROID TV P2M & C2 SERIES: