ZENITH

Rajat Kathuria
Group 7
Section E

COMPETITOR ANALYSIS
ACCORDING TO MARKET SHARE

22%

Thomson

Zenith

Sony

Others

50%
12%

11%
6%

North American Philips

HDTV MARKET
Colour TV information only useful for baseline estimation of demand
The forecasted demand for wide screen TVs
Historical data on the market penetration of colored TV
Product life Cycle of old TV with the introduction of new technology
Consumer preference towards different features
Market share in different stages of adoption
More information needed on Regulatory restrictions
Willingness to invest in HDTV technology by firms
Demand and acceptance for the new technology
Premium the consumers will be ready to pay

Existing Information Analysis

1) Provide value for money
2) Product- a)Picture quality most important criterion
b) Large screen seen as status symbol
3) Price- higher side of ballpark budget
4)Distribution- should be sold at retail stores
5)Promotion- ads for store specials and sales
6) HDTV can change perception of old and obsolete image and bad
quality

Scenario

Optimistic

Most Likely

Pessimistic

ADOPTION

Rapid

Steady

Stagnant or slow

AVAILABILTY OF

Widely available HDTV

Moderately available

Little availability

BROADCASTING MEDIUM

programming and equipment

INNOVATION PERCEPTION

Consensus on HDTV as higher

Some consensus on HDTV as

No consumer consensus on HDTV

quality product

higher quality product

as a higher quality

DEMAND FOR OLD

Demand for color TV continues to

Demand for color TV remaines

Demand for color TV begins to

PRODUCTS

grow

constant

decelerate

ACCESSIBLE

HDTV is very accessible

HDTV is moderately accessible

HDTV is not adequately accessible

AWARENESS

Widespread

Moderate

Little

COST

Progressively more affordable

Moderate fall in price

Does not become more affordable

CONSUMER PERCEPTION

Upgrade and/or replacement to

Improvement to current product

Improvement or replacement

current product owned

owned

[HDTV share of total] x [11% of 25 and larger over $1000]

[HDTV units industry forecast] + [HDTV units industry forecast for preceding scenario] x [current HDTV share of market]
[Zeniths Forecast of Industry Sales]*1000 / Industry total

ASPECT RATIO
Yes , Zenith should do Aspect Ratio study
The study is important because the screen becomes 30 % wider
The company will charge $300 as premium (30% more expensive)
Consumer preferences at different prices
Consumer preferences at different diagonal sizes
Shed light on geographic areas of customers who are more likely to
buy and hence they can be targeted

ALTERNATIVE MR
Survey of buyer intentions
Consumer feedback mechanism to be in place
Sales force and dealer opinions to be formally documented
Secondary source research
HDTV /NTSC TV preferences test

Research
PROBLEM: To check the feasibility and profitability of manufacturing
HDTV
ALTERNATIVES:
Manufacture HDTV only
Manufacture both varieties
Manufacture HDTV in smaller sizes

Manufacture with letterbox or side curtain

Objectives
Measure consumer preference for TV aspect ratio(16:9 vs 4:3) with
equal height and diagonal
Measure change in consumer preference at Price differential
Programme content differentiation
Diagonal sizes

Variables
Price
Program content
Diagonal sizes
Side curtains
letterboard