TCL is the fastest growing consumer electronics brand with advanced technology. TCL offers products such as LED televisions, mobile phones, air conditioners, washing machines and refrigerators. However, the company is facing many problems such as a decline in its profits, no increase in dealer network to meet the market growth and below par performance of existing dealers. Therefore, there is a need to formulate strategies to improve the dealership, improve market sales and acquire customers so as to increase the market share.
TYPES OF PRODUCT
TCL is a global corporation which is engaged in a wide range of businesses including telephones, TVs, mobile phones, refrigerators, washing machines, air-conditioners, smart health appliances and LCD panels, with a global presence in more than 160 countries and regions in the world.
TCL sells its products under the following brand names:
· TCL TV, TCL air conditioners in Africa, Asia, Australasia, North America, South America, and Russia.
· Alcatel and Thomson mobile phones globally.
· BlackBerry smartphones globally.
· RCA branded electrical products in the United States.
The primary products of TCL are:
· Curve FHD smart TV – It is 48 inches curved full HD smart TV which is priced at Rs.37,900. The luxury of the curve and the Full HD resolution lets one immerse in their favourite movies and videos for a visual experience that is unparalleled.
· Slim LED TV – This TV features an ultra-slim frame that is modern and fashionably high-end. This TV provides the brightest and the highest contrast level for accurate colour reproduction. The 32 inch is priced at Rs. 13,990 and 40 inches at Rs. 20,990.
· 4K Ultra HD Smart TV – The increased pixels from TCLs HD TV make the picture more accurate and allows to experience a greater visual comfort. It is designed to fit the big Indian family within the slim frame, and finished with an alloy metal back cover. The 43 inch is priced at Rs. 31,990 and 55 inches at Rs. 48,990.
· UHD Android TV – It consists of two models C2US UHD TCL Android TV which is Pure Android OS with Google Play store and an inbuilt Chromecast to enjoy unlimited content and it is 65 inches priced at Rs.149,990 and P2MUS UHD TCL Android TV which is 55 inches priced at Rs.73,990.
2. Mobile Phones
· TCL 560 Smartphone – It’s an Android device with 5.5-inch HD IPS fully laminated display and 8 MP rear camera with eye verification. It is priced at 7,999.
· TCL 562 Smartphone – It is an android 6.0 device with finger print detection and 5.5 inches Full HD distortion-free display and a 13 MP camera with a fast charging battery powered by the Octa Core Processor. It is priced at 10,999.
· TCL 562 VR Smartphone – It is a stylish and wireless phone with virtual reality. It is 5.5 inches Full HD distortion-free display and a 13 MP camera with a fast charging battery powered by the Octa Core Processor. It is priced at 13,999.
3. Smart Wearables –
· TCL Move Band – It is a classy sleek design combined with an OLED display that helps to track daily activities and get information about an individual’s fitness regime. It also helps in sleep monitoring and calorie counting. It is priced at Rs.1999.
· TCL Smart Watch – It combines the functionality of an intelligent gadget and the elegance of an accessory that can be customized to our daily life. IT helps in calorie counting, sleep monitoring, receive and dial out calls, media control and gesture control and sport activity tracking. It is priced at Rs.9999.
MARKET SHARE OF TCL
Ranking of smartphone brands based on annual global production volume
2015 market share
2016 market share
2017 market share
As we will be able to infer from the table above, TCL had a market share of 3.70% during 2015. It was able to hang on to the 8th position. In 2016, it lost its position to Lenovo, but the market share remained constant at 3.70%. In 2017, its market share reduced by 0.50%, but it remained in the 9th position.
COMPETITION ANALYSIS OF TCL
India’s most preferred brands
% preferred next smartphone
It is clear that there are bigger players in the market than TCL. As TCL does not even feature in the top 7 companies that are preferred by the customers. When we look at the top players, these are the companies that are well known and they have created a league for themselves. They’ve built up reputation and the goodwill that they possess plays a pivotal role in them being so successful. But when we talk about TCL, it is a brand that is not so well known and they cater to only a particular segment of the market.
CREATING BRAND AWARENESS
1. Creating the Brand Identity
Firstly an effective means to create the brand’s identity has to be chalked out. This enables the customers to recollect the brand instantly. This helps to position the brand well into the customers’ minds and will eventually attract potential customers. In the consumer durables market, with multiple brands competing against each other in a multistore outlet, it is important for a brand to create a name for itself to stay in the competition. Creative logos, captivating one-liners act as teasers and help boost the brand’s identity.
2. Creating great content
A product with concise description and a high quality content attracts audience who are searching for good understanding of the product details. The customer should be able to understand how the product would benefit to him and how the product is different from others competitor brands.
3. Creating and expanding user base
To create a strong customer base it is important to stay in contact with potential and existing customers who add value to the business. Majority of the sales comes through the loyal customers. So it is important to build a strong brand image and perception about the products. New customers can be acquired through spreading awareness and curiosity about the product through social media, advertisements and promotions.
4. Spread awareness
Customers would go for a product only if they are curious about it. New customers can be acquitted through creating awareness, curiosity interest among the target market about the product. Awareness can be spread through advertisements and promotions. Both above the line advertising and below the line advertising can be used for promotion of the products.
5. Taking instant product feedback.
Product feedback is important because it would give the business owners an insight about how they can improve their business, products and overall customer experience. A company can come up with an innovative product only if it meets their customer needs and exceeds their customer expectations. Hence taking instant feedback is very important.
TYPES OF PRODUCTS
METHODS TO HOLD CURRENT DEALERS- Channel sales calls for a high degree of risk. In channel sales, the channel dealer is met with once or twice a week and the retailers and small dealers are confronted on a regular basis.
Given the nature of the job and the dynamic nature of distribution, it is important to keep the channel dealers motivated which is a key to success in distribution.
1) A well- motivated dealer helps to sell products with higher profit margin. This ensures high turnover.2) Effective motivation ensures lower rate of defection. It also ensures loyalty to the brand and restricts brand switching.
Methods to motivate dealers to perform better
1) Effective segmentation – Geographic segmentation is the most important segmentation. If a dealer is given freedom to operate exclusively in a certain geography, this would act as a motivating factor given that he is well equipped with the market standing. However the mode of segmentation can be altered based on the product.
2) Setting targets – Setting targets for the dealers can assist him and make sure he keeps track of the sales.
3) Being available – Communication with the dealer on a regular basis will help to follow up on the job. Also being available to the dealers either over the phone or personally will help to motivate them.
4) Fine tune channel operations – Ineffective operation can demotivate the dealers. It will act as an impediment in the process. Ensuring timely completion of work can help strengthen dealer network.
5) Supporting dealer with schemes and discounts – The most motivating factor in channel sales is the money the dealer can earn from the company’s brand. It can make or break the deal. Good business will motivate him to project the brand in a more effective way. So in order to keep a dealer motivated, he has to be offered good schemes and offers. Certain additional incentives and special benefits will help her the dealer’s trust thereby improving business.
· Percentage cash-back offers and gifts in the form of scratch coupons.
· Extended warranty period offers. Example: By paying Rs.999 at the time of purchase of the product, the customer gets entitled to receive an extended warranty of 2 years apart from the normal 3 years which he receives.
· Tie up with specific banks in order to facilitate loans to the customers. Least EMI or low interest offers can be brought into picture to attract the customer attention.
· High profit margin products will be positioned superior in the minds of the customers in comparison to the low profit margin products by laying emphasis on the technical features associated with these products.
· Strong advertisement campaigns for high profit margin products.
o Hot air balloon ads in crowded places like malls, fairs and exhibitions.
o Ads designed in a manner that emphasizes on the unique and differentiated features of the product like Universal Radio Frequency Remote Control, superior quality speakers attached with the TV, option for internet connectivity.
· Demo TV displays in malls.
· Celebrity endorsements
· Low pricing of certain products in comparison to that of competitors products which are in the same range to attract customer’s attention toward the products.
· Bulk sale of TV sets (preferably high profit margin) to high end hotels, fully furnished apartments.