BPL Ltd. has scripted a segmentation strategy for its colour television (CTV) division to retain its leadership position and also increase its market share. The strategy involves dividing its CTV range into five segments with each addressing a specific price range. The exercise is expected to be completed by October.
The move will be backed by an extremely aggressive brand campaign which will see adspend of around Rs 60 crores during the current year. Another strategies include streamlining its distribution channel and also outsource some of its requirement to other manufacturing units.
In the top-end, BPL will have cutting-edge products and is set to launch one of Germany's largest-selling television brands, Loewe, in the price range of around Rs 85,000. Its Pro FX range of audio sets is already gaining popularity.
The next segment will be in the flat screen range where Matrix has been positioned to take on competition in that market. With prices starting from Rs 20,000, the segment will have an entire range of flat-screen CTVs.
The third segment will have its popular Studio Line range. Its price range is between Rs 18,000 and Rs 44,000.
In the fourth segment, BPL will position televisions which will specifically address the festival season discount and exchange offer market. The price range could vary between Rs 12,000 and Rs 15,000.
The fifth segment is the Prima range which is positioned as an entry-level product. It is priced as low as Rs 10,000, which makes it very competitively priced in its segment.
With World Cup soccer and cricket tournaments to follow, BPL is positioning itself to take full advantage of the season. The company expects to grow by around 30 per cent during that time and are making all efforts to gear up to take advantage.
BPL's overall market share, as per ORG, for the first quarter of 2001-02 is around 19 per cent, which is expected to grow to around 21 per cent within a few years.
While BPL has maintained its leadership position in the CTV market across all screen-size segments as per ORG, the industry itself has seen a decline by as much as 10 per cent during the first quarter of 2001-02.
As per ORG, secondary sales for April and May 2001 has grown by 7.1 per cent and average prices have declined further with sales coming primarily from the 14 inch, 20 inch and lower end 21 inch segments.
Our typical marketing budget is usually 10 per cent of the topline spend