Case study on Videocon

Case Facts: * Mr Sanjay Nigam recently got promoted as the area sales manager. * His main work is to allocate quota among his five divisional sales managers. * A portion of Mr. Sanjay’s compensation is dependent on, how the divisional sales managers would reach their given quotas. * He was heading the refrigerator business for Videocon, later he was given the responsibility of the sales of the region. * 1985, via technical tie up with Toshiba; Videocon launched India’s first world class colour television. * Videocon has almost zero waste technology which help reduce cost by optimizing the production process. * The company now produces both colour as well as black and white televisions. * At its modern plant, the company produces all critical and important components with backward integration technology. * It also produces sophisticated products ranging from audio systems, radio, recorders and personal stereos. * Videocon was the first company to introduce the picture-in-picture, turbo sound, surround sound and large screens. * It is the first the first Indian company to win the prestigious CE approval for exporting their television to Europe. * Along with high completion, there is also high opportunity in the Indian market. * Their major competitors’ are Onida, BPL, LG and Samsung. * In the refrigerator sector their major competition is with Sony, Kelvinator and Electrolux. * They are one of the leading companies in sales budgeting process as there has emerged as the key player in many countries. * Videocon does their budgeting by taking into account the changing profile of the consumers, the shifts in the marketing shares and the profitability of the new products. * The budgeting takes place in the month of June every year. * The management take into account the