How Quality Affected the Brand Value of Videocon

HOW QUALITY AFFECTED THE BRAND VALUE OF VIDEOCON

This case is on a home appliance manufacturing company called Videocon, how a bad quality of the product can affect the market value of the company. Videocon deals with the making of refrigerator, air-conditioner, mobiles, washing machine and other home appliances products. Videocon has manufacturing units all over the country, with its headquarter in Maharastra and corporate office in Gurgaon, it is also involved in exporting of its products. Videocon has a wide range of employees and it is one of the biggest MNCs of India. Videocon has a different supplier for the manufacturing of its products. It used to have a good brand value until they faced some quality issue from one of their manufacturing plants called “ Techno electronics- a group of videocon company”.

Videocon’s manufacturing unit- Techno

Videocon gets its product manufactured through different vendor companies like Techno, Jubilant etc. Techno is one of the biggest vendor companies in Videocon. It has the highest number of employees among all the vendor companies of Videocon. It consisted of five warehouses, four hundred and fifty permanent employees. It is involved in the manufacturing of mobiles, AC, refrigerators, washing machines, and coolers and has more than five hundred trucks for logistics. It also has a record of the best logistic system among all the vendor companies and it is a six-sigma certified company. Every year the company successfully passed the audit process of Videocon. Techno has its own R&D department through which it updates its technology time to time.

Techno is a season based plant, like during summers the demand of refrigerators and AC are on the peak, so, it is involved in the manufacturing of those products 24*7. During the winter they engaged themselves in the production of washing machine and mobiles. Whenever Techno received orders from the head office of Videocon, they immediately Gave their order to the supplier to facilitate them with the raw material for the further production process.

Working Culture of Techno

Techno remained engrossed in the manufacturing of the products as per the order from the headquarter. To meet the required order on time they had to work for twenty-four hours a day. The working culture of the company was planned according to the planning department of the unit. It worked on two shifts of twelve hours each from 7 am to 7 pm and 7 pm to 7 am. The employees were given only half an hour break in between. The manufacturing company are totally dependant upon the daily basis labour, because, the order received by them was more than their producing capacity. The labours involved in the production were unskilled and inexperienced. The toughest task fell into the hands of the permanent employees who were responsible for the training of those