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M A R K E T I N G Thomson: Take Two It has a new CEO and new plans. But will things work out this time round? By Nitya Varadarajan
But circa 2001, Thomson in India is a desperate laggard. It sold just 1,50,000 CTVs last year, translating into a 3 per cent share of the overall CTV market and a topline of Rs 250 crore. Admits Vivek Badrinath, Thomson's CEO of two months, who has replaced EXPAT V. Kumar Chopra, now back with Thomson in the US: ''It is strange that a globally recognised brand like Thomson has failed to evoke equivalent sentiment here in India.'' Well, not so strange if one considers that Thomson badly misread the market. In a bid to justify its premium image, it came in with high-priced CTVs. But that ended up restricting it to a small niche in the market. In contrast, its Indian contemporaries like LG and Samsung launched a range of models, covering a wider price spectrum. Thomson did cut prices last year, but in a stagnant market it still seemed expensive versus its rivals. Additionally, Thomson's market-reach was limited. Consider: it has 2,500 dealers and 35 service centres countrywide, whereas industry major BPL has 500 service centres, of which 36 are in Tamil Nadu alone. And it didn't help that Thomson did not spend as much as its Indian or Korean rivals on brand communication. Says B.A. Srinivas, Director, Vivek Ltd, the largest consumer durables retailer in South India: ''Thomson is perceived as a medium-priced, good foreign brand, offering value for money. But there is scope for tremendous improvement.'' The 32-year-old Badrinath, who joins Thomson from France Telecom, says that things will soon change. To begin with, he intends to reinforce Thomson's 'premium' image. Apart from advertising, Thomson will lay greater emphasis on customer experience of its products. At the core of its new initiatives is a market-wise approach. Says Badrinath: ''Instead of launching everything everywhere, we will give the customer what she wants.'' In Tamil Nadu and Maharashtra, Thomson has a relatively strong foothold. It is now relaunching itself in the northern and eastern markets. Jallandhar and Ludhiana already have 'Techno Shops' (exclusive Thomson showrooms), while Chandigarh and Delhi will soon have their own, too. In terms of new products, the company plans to introduce CTVs with bigger screens in the range of 33-inch to 80-inch. Claims K. Sampath Kumar, Vice-President (Marketing & Sales), Thomson: ''There is a growing consumer interest in bigger-screen CTVs, and we want to cash in on this.'' Price, however, could be a big constraint. The cheapest of its big-screen TV is priced at Rs 59,990 and the most expensive (80-inch) goes for a whopping Rs 8 lakh. At last count, Thomson had sold 54 of these expensive sets, of which one was an 80-incher. By next year, more models in the popular range will be added. ''We cannot fight tooth-for-tooth to get marketshares, but markets can be grown in other slow and steady ways,'' says Badrinath. But in an industry swarming with 17 players, slow and steady may not win the race. |
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For a
company that almost invented the television, the cold shoulder it has been
getting from consumers in India must seem inexplicable. Five years ago,
when the now Chennai-based Thomson Consumer Electronics entered India, it
thought it had everything going for it. Its Paris-headquartered parent,
Thomson Multimedia (renamed so, excepting India, in 1998) was a leader in
consumer electronics, with brands like Thomson and RCA (which first
launched the TV). And with 29,500 patents worldwide under its belt, it
could well claim to be the technology leader.