Konark Television India

A long-term distribution strategy is critical to the success of Konark. Such a strategy begins with whether the company wants to sell directly to consumers, or use a dealer network to do so. While the emphasis at Konark has been to use dealers in the past, this has been inconsistently applied since the company maintains showrooms where customers can examine sets and make purchases (although few purchases are actually made in the showrooms). Thus the company is in direct competition with its own competitors, and is maintaining expensive showrooms that contribute only marginally to revenues, let alone to profits.

In order to reduce its own costs and build customer loyalty, Konark should eliminate its company showrooms and let consumers visit the dealers directly in order to decide what model of television they want to purchase. This will also eliminate the company as a direct competitor to the distributors and encourage loyalty among the dealers which is currently lacking. Konark could take the money it would save from opera

. . .
any would still have favorable pricing when compared to the competition (although this is apparently only a small selling point to consumers) and would be able to compete effectively when more than one brand is sold in a single outlet. At this point, price reduction across the board is largely a function of the taxes applied to the television sets as well as the products themselves. There is considerable price support for sets priced between Rs. 10,000 and Rs. 14,000, but Konark continues to price its products near the bottom of this range. If Konark can encourage dealers to sell the products at a slightly higher price, it should be able to maintain the market share which it currently enjoys, and establish Konark sets as being of superior quality through its premium pricing strategy. The company's concerns over pricing at the dealer level may be overstated. Bargaining is an accepted part of Indian culture, and it is unlikely that Konark will be able to eliminate this practice single-handedly, particularly since price is not the main selling point for television sets. Konark is concerned that different customers receive different pricing; to some degree, building closer relationships with dealers will help eliminate that prob
. . .

Some common words found in the essay are:
, Ball McCulloch, Long-term Konark, market share, profit margins, sales tax, konark dealers, television sets, Inc Root, gain market share, konark sets, competing brands, gain market, eliminate company, dealers company, Lexington Books, pricing strategies effective, profit margins company, sales tax exemption, sales tax exemptions,
Approximate Word count = 1864
Approximate Pages = 7 (250 words per page)

More Essays on Konark Television India