In a major restructuring of its business model, consumer electronics major BPL has decided to reposition its 16 colour television models under a series of five sub-brands.
The initiative has been taken to escape the impact of recession, which has hit the consumer durables market.
The sub-brand series will be targeted at the various segments of the market -— one for the lower end, one for the middle end, and so on. BPL plans to study the profile of the dealers, their investment capacity, their customer profiles and then offer them the particular series that suits them.
In the last four years, the CTV market has doubled and the average compound rate of growth has been 25 per cent. The year 2000-01 is the first year that the market has flattened. Simultaneously, many more brands have entered and the pie has been divided, as a result of which prices are coming down.
While the CTV market grew from 2.8 million in 1996-97 to 5 million in 1999-2000, the number of dealers has stagnated at 3,500. By splitting the 16 models into five series, it will also be easier for the company to spread itself and market its less popular models along with the most competitive ones.
Despite the difficulties, BPL expects to maintain its sales figures this fiscal — it has maintained its leadership position at the end of the last third quarter. The company’s net profit declined by 28 per cent to Rs 20.1 crore in the third quarter of the current financial year from Rs 28 crore in the corresponding period of the previous year.
For the nine-month period ended December 31, 2000, BPL has registered a 20 per cent decline in net profit to Rs 61.3 crore, on a turnover that has fallen 16 per cent to Rs 1,356 crore over the previous corresponding period.