Lame Advertising: Videocon — This Is How We Fund Our Lame Advertisements That Feature Multi-Crore Demanding Celebrities

by Vinaya HS on January 26, 2008

in Business & Management,India Advertising Blog

Thanks for visiting Capital Advisor. I frequently update this blog to cover various topics on personal finance such as investment strategies, financial products that you should buy and ones that you really should stay away from, financial calculators, emerging themes such as early retirement and financial independence, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.

Videocon first burns shareholders’ money in creating this meaningless and irrelevant ad. And when it’s time to cut that multi-crore check to each of the multi-crore demanding celebrities, they unleash this lame scheme on the public.

Maano Ya Na Maano!

Pay just Rs 12,990 for the Jumbo 34 Flat TV and deposit a sum of Rs 7000 to get a Plasma 32 Entitlement Certificate. Redeem this certificate after 2 years and 11 months for one Plasma 32″ (81 cm) TV. You can also redeem this certificate earlier to get heavy discounts on the Plasma 32, under the premature redemption option. Hurry. Book your TV in next 3 days!! Better believe it. It’s full Paisa Vasool.

Source: Videocon’s printed ad featured in leading dailies.

“It’s full Paisa Vasool,” actually means “We’re scamming you, you fool.” I asked this question a while back and I pose it again: What do Indian corporates take the Indian public to be? Mindless idiots?

What do you think? Seriously.




Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.

{ 19 comments… read them below or add one }

Anoop January 26, 2008 at 9:08 PM

But vinay, there may be people investing into these. We can’t really call them mindless idiots rather they may be a bit irrational in their approach. Corporates always see the bigger picture when they sell a product in a market, “You” would not fall into these lame corporate strategies, but there are many people who really fall into these categories & you can’t really call them as mindless idiots. The moment they say 34 inch flat TV for 13000 INR, people are already in the mouse trap. Like I once said “Free cheese is available in every mouse trap”, the point is we should analyze if its a potential banana skin for us before investing into something.

Santosh January 27, 2008 at 9:40 PM

Well, I won’t really consider it to be lame advertising or scam of any kind.. a 29 inch tv is available for 10k these days.. so, it shudnt be tuff to sell a 34 inch tv for 13k.. after all, the world is moving to LCD & Plasma these days n it cud be that there r millions of 34 inch CRTs lying in china which videocon is captalising on.. :D .. 32 inch plasma mebbe worth peanuts after 3 yrs…. 32 wud be outdated by then & again there cud be millions of 32 inch plasmas of inferior variety may become available for at dirt cheap prices then.. also 7k from a million people(assuming) for 3 years is not a small amount for any company which can deploy this capital.. Just some right mathematics..

This is my opinion..

Vinaya HS January 28, 2008 at 11:13 AM

@Anoop: My problem is more with the Rs 7,000 you’d be parting with right now. Another question: If you have Rs 20,000 would you buy a Videocon?

@Santosh: ROTFLMAO @ “It cud be that there r millions of 34 inch CRTs lying in china which videocon is captalising on.”

Anoop January 28, 2008 at 1:19 PM

Vinay, I would not buy a Videocon but there are better brands available around for the same price..Again “you & me” may go on brand but not many do the same, cost is an important factor for money, at the end of the day all you need is something for an entertainment, be it videocon, or Sony..Quality of picture and performance comes next & only people from this generation like you and me may settle only for the latter option, people like our parents may see the former.. Hope you agree with me, but you can’t really call them as mindless idiots just because they do so, neither do corporates who make such ad’s really think so..Again irrational approach of us is what corporate’s are capitalizing on.

santosh January 29, 2008 at 2:57 PM

haha.. i was kidding abt those millions of crappy CRTs from china.. but seriously, india is always treated as a dump yard.. CRTs which are manufactured but not sold, will invariably make their way here.. same applies to plasmas.. go to a electronics store n ask how many ppl buy 32 in plasma/lcds? u’ll see that most wud opt for a 42in since the price diff is not much & they get a much bigger one..

coming to cost, for a naive user, sony or samsung give the same output quality.. so why pay 30-40% more for the same thing? Like arun said, in india, majority of the ppl look for value for money.. So, these TVs will sell.. there r no losers here really..

Vijay February 6, 2008 at 3:47 PM

We Indian have one problem, if we get the same quality at higher price then we think it is good and if we get it at a lower price then we think it is downgrade product without comparing it with other Brands. if any body has checked the specifications of 34″ Jumbo TV it is a good product with 7 band Equaliser and 800W pmpo and with a free handsfree headphone, which is more than enough for a standard room. So check first the specification of other Brands & then comment and more if you want a Sony 34″ TV you have to nearly 25K to 30k for the same features.

NAV February 13, 2008 at 7:08 PM

HI GUYS I READ LL YOUR GUYS REVIEWS ..I JUST CAME FROM USA…AND I HAVE A PS3 ANDMY PS3 DONT WORK ON THIS OLD TV I HAVE..SO I WAS ABOUT TO BUY A 29 INCH TV SO I CAN USE IT FOR PLAYING PS3..THEN I FOUND OUT THERE IS A BIIGER SIZE OTHER THAN 29 INCH..THAT IS 34 INCH VIDEOCON…… AND GUESS SINCE THEN IAM TRYING TO FIND OUT THIS 34 INCH TV FOR JUST 13K ..I SEARCH JALANDHAR, PHAGWRA, LUDHIANA, CHANDIGARH …BUT NONEOF THE DEALERS ..DISTRIBUTORS HAVE THE 34INCH TV SOME OF THEM DONT EVEN KNOW ABOUT THAT… I TRY TO INQUIRE THAT FROM VIDEOCON HEAD OFFICE ..BUT THEY DIDNT SATISFY ME EITHER ..SO WHERE CAN I FIND THIS 34 INCH JUMBO VIDEOCON TV ..PLZ HEL ME MAIL ME A T NAVMINHAS@YAHOO.COM ..IF ANY ONE KNOWS ABOUT IT ..THANKS

CHANDRAKANT DESAI February 22, 2008 at 4:55 PM

i am presently at valsad.

can you please let us know the exact price (including all taxes) for videocon jumbo 34″ colour television and it’s scehem.

we also would like to know the exact dealers / suppliers of this television at Valsad (gujrat), Vapi(gujrat).

Mukund vaidya February 26, 2008 at 2:57 PM

IS this offer is chennai or not, if it is Yes,pl asend me mail

Mukund vaidya February 26, 2008 at 2:57 PM
Alok March 23, 2008 at 12:25 AM

why are folks here so bothered about how much videocon is making on its offer. it is the perceived value with the buyer that counts. a 43 inch tv for rs 13,000/- today is a good deal. plus, rs 7000/- in the hands of purchaser will be rs 10,000/- maximum in three years time. plus, he will be able to get at least rs 3000/- for his 3 year old 34 inch tv by that time. the deal makes sense unless 32 inch plasma prices drop to below rs 7000/- by that time.

Ravi April 3, 2008 at 7:52 PM

@ vinay:

I really dont know what pseudo intellectuals like you and a few others here are tryin to prove. What is this big deal about Videocon pulling off a scam? I want to know what part of it is a scam? And for your information, such marketing gimmicks are present everywhere in the world. So why single out India? In fact, comparatively Indians have a low purchasing power which forces corporations to come up with better offerings than abroad, since people are less likely to buy bullcrap dished out by them. Trust me, you will see many more of these gimmicks abroad.

Secondly, what part of the offering do you think is a scam? There is a reasonable assurance from a company like Videocon that the certificate will be redeemed as and when promised. If you are talking about the whole scheme itself being a scam then I think you need to re-examine your logic. What Videocon is offering is a great Value for Money product. Whether the entire deal is worth 20K is not for me and you to decide. People cant think for themselves. Secondly, there is no one in the market that is offering you a better product at a cheaper price today.

Of course, you would very much want to alienate yourself from the ‘common’ Indian consumer; probably by buying products from lets say a Sony, but do you really think Sony (or anyone else) is really any different??

I would in fact say here that Videocon has come up with a great marketing plan. Not only are they raising debt, free of cost (@7000 per consumer) for three years, they are also pushing their products (the plasma screens that lie idle in China right now) into Indian homes. At the same time, they are providing consumers with something they previously could not even have thought of. So whats wrong with that? Its not for no reason that Videocon has grown to be a giant in the electronics (esp TV) business worldwide. They have been innovative (especially with this offering) and you have to give them that.

@Anoop
Do you really think that a 32 inch plasma will cost you less than 7K after 3 years (adjusted for inflation and risk free interest rates)? Trust me, the cheapest a 32 inch plasma you can realistically expect to cost you after three years will not be lesser than around 15-18K considering that 29″ CRTs are still in reasonable demand and plasmas and LCDs will always be priced higher than CRTs. So I still think it is a decent offer. As for the quality, I agree there is bound to be some skepticism about a Videocon plasma. Still you can reasonably trust a company like Videocon to maintain a bare mimimum standard.

@Santosh
About your comment on India being a dumpyard, I agree. But you cant wish it away so easily. Being a growing economy, we will always be subjected to that risk. However, expecting the people to forego opportunities of buying something that they can afford is not going to change that. In fact, the more people buy such products (like the Jumbo 34 PLasma) the more their aspiration levels will rise and they will begin to demand better products. As a result, India will slowly crawl out of the trap of being a dumping yard for outdated products. There is no other way to get ot of this. Peoples realistic aspiration levels have to increase. Making plasma screens commonplace is not too bad an idea.

I think this Jumbo 34 deal is a good one, esp when considered in the light of Indian markets and consumers. It doesnt make sense in pretending to be an elitist and refusing to acknowledge something that has merit.

Ravi April 3, 2008 at 7:54 PM

@ vinay:

I really dont know what pseudo intellectuals like you and a few others here are tryin to prove. What is this big deal about Videocon pulling off a scam? I want to know what part of it is a scam? And for your information, such marketing gimmicks are present everywhere in the world. So why single out India? In fact, comparatively Indians have a low purchasing power which forces corporations to come up with better offerings than abroad, since people are less likely to buy bullcrap dished out by them. Trust me, you will see many more of these gimmicks abroad.

Secondly, what part of the offering do you think is a scam? There is a reasonable assurance from a company like Videocon that the certificate will be redeemed as and when promised. If you are talking about the whole scheme itself being a scam then I think you need to re-examine your logic. What Videocon is offering is a great Value for Money product. Whether the entire deal is worth 20K is not for me and you to decide. People [can] think for themselves. Secondly, there is no one in the market that is offering you a better product at a cheaper price today.

Of course, you would very much want to alienate yourself from the ‘common’ Indian consumer; probably by buying products from lets say a Sony, but do you really think Sony (or anyone else) is really any different??

I would in fact say here that Videocon has come up with a great marketing plan. Not only are they raising debt, free of cost (@7000 per consumer) for three years, they are also pushing their products (the plasma screens that lie idle in China right now) into Indian homes. At the same time, they are providing consumers with something they previously could not even have thought of. So whats wrong with that? Its not for no reason that Videocon has grown to be a giant in the electronics (esp TV) business worldwide. They have been innovative (especially with this offering) and you have to give them that.

@Anoop
Do you really think that a 32 inch plasma will cost you less than 7K after 3 years (adjusted for inflation and risk free interest rates)? Trust me, the cheapest a 32 inch plasma you can realistically expect to cost you after three years will not be lesser than around 15-18K considering that 29″ CRTs are still in reasonable demand and plasmas and LCDs will always be priced higher than CRTs. So I still think it is a decent offer. As for the quality, I agree there is bound to be some skepticism about a Videocon plasma. Still you can reasonably trust a company like Videocon to maintain a bare mimimum standard.

@Santosh
About your comment on India being a dumpyard, I agree. But you cant wish it away so easily. Being a growing economy, we will always be subjected to that risk. However, expecting the people to forego opportunities of buying something that they can afford is not going to change that. In fact, the more people buy such products (like the Jumbo 34 PLasma) the more their aspiration levels will rise and they will begin to demand better products. As a result, India will slowly crawl out of the trap of being a dumping yard for outdated products. There is no other way to get ot of this. Peoples realistic aspiration levels have to increase. Making plasma screens commonplace is not too bad an idea.

I think this Jumbo 34 deal is a good one, esp when considered in the light of Indian markets and consumers. It doesnt make sense in pretending to be an elitist and refusing to acknowledge something that has merit.

Sarah Natasha April 4, 2008 at 10:39 AM

For people who can delay gratification, it is not a bad offer at all..

COOL April 7, 2008 at 9:53 PM
YOGESH KUDALE September 26, 2008 at 11:57 AM

Everyone rather than thinking what Videocon is making, should think that wheather it is really beneficial for us or not, and as we calculate the interest its worth to go for it, and its nothing to be idiot in that. Opportunities are to grab, not to be missed. And I will like to highlight one thing, Videocon is always coming with such types of schemes, all were really found to be really beneficial to the Customers, we can survey it.

kmk October 30, 2010 at 4:37 PM

hi!!guys
i bought 34 inch videocon.we people r into tech peoples marketing traps.
brands and images for modern generation.whats the problem with conventional tv ?
i am enjoying greately.i can tell those people with LCDS N PLASMAS that i never saw picture quality as they mention spending so much money ,they keep on telling “providing u have HDMI CABLE”, providing u have that…this..what a world?think sensibly.

omkar tapkir July 18, 2011 at 12:20 AM

my videocon 34 inch hav no problem

Manin October 5, 2011 at 3:55 PM

Now the co is asking 7k +. They don’t make plasma tv 32 andy more.
What now?

Previous post:

Next post: