TCL: The Creative Life TCLis one of China’s most innovative and resourceful consumer durable enterprises Founded in 1981.
In 36 years ofbusiness journey it has- Ø It has 20 manufacturing plants, 60,000employees & more than 40 sales offices around the globe.Ø They have 18 Research & Development wings & centralizedsupply chainsØ In 2011, the brand value of TCL had exceeded $8 billionØ TCL is China’s largest global scale consumer electronicsgroupØ TCL owns and sells Thomson televisions and Alcatel mobilephones worldwide under the TCL umbrella including TCL’s own television sets andmobile phones as well RECENT MARKET TRENDS OF TCL IN INDIA:Ø TCL’s LCD TV sales have seen a staggering upsurge. Insales figures, for the first half of 2017, its LCD TV sales volume increased by12.2% to 9,603,392 sets, out of which sales volumes of smart TVs and 4K TVsincreased by 49.8% and 45.6% to 6,119,663 sets and 2,226,920 sets,respectively. STRATEGIES TO KEEP DEALERS MOTIVATED:1.
OFFEREXCLUSIVE TERRITORIES TO EXISTING DEALERS: Ø TCLshould work on giving territories to the existing Dealers & also work onexpanding dealer base in different regions.Ø TCL sales force must focus their energy on highperformers and ensure the market isn’t oversaturated or too competitive.Ø Makethe Dealers feel privileged by giving them offers over & above Margins onhaving achieved their targets.Ø For a dealer-friendly approach, TCL should offer itsexisting dealers larger, exclusive territories in exchange for greaterpromotion and display of TCL products. 2. IMPROVE TRAINING RESOURCES Ø As we know that OEM’s have limited control over theirdealers’ management policies, while giving training to dealers’ staff, they canshare best sales practices and training resources for a mutually beneficialrelationship.Ø Since the dealer’s salespeople serve as the OEM’sbrand ambassadors, training can be a critical tool in helping dealers attractand retain top talent, turning their sales force into brand champions.Ø In a competitive scenario, Motivated and well-traineddealers 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-dealerrelationships which is helpful in having a point of contact to look after aspecific 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 froma deployed District Sales Manager in the area and have a timeline of 24-hourresponse guarantee.Ø Field sales representatives also maintain regularcommunication with the dealers and keep them aware of any new products andresources available at their disposal.
Also, it would be icing on cake if Dealerscome with questions or feedback for company. 4. TRUST WORTHY SERVICE CENTRES: Ø When products break, dealers need instantaneous accessto part and repair information. By providing a centralized, electronic portalof repair manuals, instructional videos, maintenance advice, and parts information,OEMs can help dealers service their customers’ equipment quickly andefficiently.Ø By making these resources readily available forservice persons it will increase dealer productivity and profits and can add tocustomer Delight which can generate high customer satisfaction. RE-BRANDINGTCL IN INDIA: 5.
Out oftwo types of Rebranding TCL should focus on-Ø Proactive rebranding- TCL should recognizes that there is anopportunity 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 createa well thought out video as to why customers need that TV, Needless to say itwould catch Customers attention & this could be a good way to get through. 7.
2017-2018GLOBAL TOP 50 CE BRANDS WINNER: Ø After having won the award by International DataGroup (IDG), TCL must flaunt its achievement in establishing its brand equityin market by Advertisements. 8. FLAUNTING FLAGSHIP PRODUCT: Ø TCL must acknowledge about its flagship model QLED TV,85-inch X6 about winning & aboutthe stunning picture quality because of Quantum Dot display technology, HDR andDolby Atmos sound system. ADOPTINGRED OCEAN STRATEGY TO GAIN MARKET SHARE: 9. SEGMENTATIONIN DIFFERENT TV SIZES: Ø TCLshould have the maximum focus on 32-42-inch segment, which alone accounts forover 55% of the Indian TV market.Ø “Thetelevision industry in India is going the smartphone way and more price war mayerupt”.Ø TCLshould be ready to face tough competitions from big players like LG, Samsungand Sony & make strategies to gain competitive advantage over rivals inIndian market.
Ø Theytogether control around 80% of the Indian LED TV market.VARIETYAND 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 21Dealers in India, 19 are in Tamilnadu, only 1 is in Karnataka & rest 1 isin Maharashtra.· No of dealer inBangalore currently- 1· No of service centersin Bangalore- 1 10. BECOMING PRICE WARRIOR: Ø Inpast one year, apart from TCL, brands like Sanyo, LeEco, and Polaroid &Kodak have also entered the Indian market & have become price warriors.
Ø Localhandset makers such as Micromax and Intex have also decided to focus more onthe television and appliances market because of facing tough competition by Chinesecompanies in smartphones segment. 11. SEGMENTATIONOF CUSTOMERS IN BANGALORE1) TCL0is0offering TVs withdifferent features, sizes, combination and prices & is targeting customersfrom various segments.
2) SLIM LED is the low priced TV which istargeted towards people of lower income group, students, bacheloraccommodations with more number of rooms, small and medium level Restaurants, hotels, hospitals,government offices, etc.3) Thenext variants of TCL TV which is “FULL HD SMART TV” which is 48 Inches ispriced at nearly Rs 38000 and “4K ULTRA HD SMART TV” which is 43 Inches & pricedat Rs32000 are targeted towards medium income group with annual income of3lakhs to 4 lakhs, hotels, restaurants, corporate offices, game zones etc.4) Thelarger size and best latest feature variant “C2US UHD ANDROID with 55 & 65 inchesis priced between Rs64000 & Rs105000 is targeted towards the higher incomegroup segment, large corporate offices, luxury hotels, common entertainmenthalls, malls, etc.5) Focusingon selling more of smart televisions of medium range is the best current marketfor TCL in Bangalore as it comprises about 60-70% of the television market inthe current scenario and upcoming future.
12. STRATEGIESTO INCREASE ROI OF EXISTING DEALER AND INCREASING DEALER BASE TO EXPAND THEMARKET.1) Settingup attractive incentive plans in form of holiday package on achieving salestarget by the dealers. This will motivate my dealers to sell more of TCL TVsthan of the competitor brands.
2) Maintainingcompetitive pricing so that dealers can pitch in more sales of differentvariants.3) Settingup sales discount plans for the dealers if they achieve certain target toincrease sales within stipulated time so that dealers earn more margins andpitch more sales of TCL TVs.4) Advertisingthrough TV, newspaper and holding ads in Bangalore area along with theexclusive dealer details will motivate the dealer towards TCL as this saves hislocal advertising cost and increases his ROI.5) Settingup sales force to bring on board more of local dealers in Bangalore market andalso to collaborate with multi brand outlets like CROMA, E-ZONE, BIGBAZAAR,RELIANCE DIGITAL, etc.
6) PromotingDealers to open exclusive showrooms and set up more service centers so thatbetter after sales service can be offered in Bangalore region to get thecompetitive edge over other rival brands. Offering better after sales serviceand having exclusive showroom will build direct trust of the customers on thebrand.7) Campaigningand sponsoring sports and social events in Bangalore such as college fest,music concert, football matches to create more brand awareness and invite moresales through exclusive counters at exhibitions with the help of local dealersand sales force.STRATEGIES TO INCREASE CUSTOMER BASE: 13. EXTENSIVE MARKETING: Ø TCL, India can come up with a marketing campaign bypublishing advertisements in newspapers or televisions including dealer’sinformation at the bottom hence promoting our own brand and indirect promotionof the dealers.Ø Apart from the price factor, promoting the productfeatures 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 that1. As compared to other TCL provides ultra slim tv2. TCL tv are smart tv segmented as compared to others3. Apart from these, there is no other significant difference in all thetvs, yet TCL priced its product at 49000 while the others are above 1 lacSource: https://www.
gadgetsnow.com 14. PROMOTIONAL OFFERS:Ø By clubbing mid-range tv with TCL move bands forattracting young crowd of Bangalore. 15. SALES MIX:Let us assume if 100 units are sold,40 units are to be of SLIM LED TV30 units must be of 4K HD SMART TVRemaining 30 units could comprise of CURVED as wellas ANDROID TV Therefore, 70% of the TV sold is low to mid-rangewhich 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 belured in.· These margins include the overhead expenses for the dealers.· Additional 10% discount on achieving desired sales target for aparticular variant.· We can provide indirect advertisements for dealers by mentioning theirinformation in the ads published by TCL, India.· For every 20 units of TV sold, one additional unit is sponsored by thecompany. Assuming, for the 14000 variant, suppose 20 tv aresold by a dealer, then Profit on 20 tv =20 * 700 = 14000 Hence, Rs 14000 profits on a low range variant andsimilarly the profits increase for the higher end variants.