- CRT The history of CRT TV sets numbers over one hundred years. Kinescope (picture tube) is the basic part of a CRT TV set. Kinescope screen is covered with phosphorous containing content. Flow of electrons (electron beam) makes phosphorous pixels light red, green or blue light. Electron beam moves making a color line consisting of active pixels. Then, it moves down and creates the next one, etc. Speed of beam movement is high, and eye perceives the integral picture. Technology retains rather large potential. Leaders of TV industry continue producing CRT TV sets to every fancy. Although displays are not so large as projection systems, a wide scope of technical solutions makes CRT an attractive option for clients with different demands. Currently, models with convex, flat and super flat kinescopes are available. Price of a TV set with a convex kinescope varies within the limits of several hundreds USD. That is why anyone can afford it. Most buyers are entirely satisfied with the features of such a kinescope. Flat kinescopes are deemed a modern tendency in CRT development. LG (Super Flat), Sony (Super Trinitron) are the few brands which offer TV sets with super flat display. Quality of picture on such a screen is comparable to the quality of a picture behind the window glass. Such displays have wide angle and stylish modern design. Currently, four basic types of large CRT TV sets depending on their size are available 28, 29, 32 and 34 inches. The second group is the most popular and numerous: number of
models presented in the market is calculated nearly in hundreds. Unlike more compact TV sets, they are the most difficult for choice since they are technically sophisticated. To make the right choice, it is first of all necessary to determine the format of your future TV set - 4:3 or 16:9. To watch TV programs or video, 4:3 format TV set is the best choice (29, 34 inches); to use DVD, 16:9 display (28 and 32 inches) is more preferable, since it allows experiencing atmosphere of the cinema. Scan of a CRT TV set is not the least important factor. Normal television broadcasting is performed with transmission of 50 half-frames during one second and with the relevant display of such half-frames on the screen. It means that 50 half-frames are displayed within one second. In this case, we are speaking about 50 Hz technology. In case of 100 Hz technology, every half-frame is stored in TV receiver, and its display is repeated. It results in reduced flickering effect and quieter picture. 100 Hz technology itself has several drawbacks which include but not limited to video capture and digital loop in case of rapid movement of objects. To avoid these drawbacks, different technologies are used, for example, Digital Mastering or Digital Natural Modion. Some models have in-built processors of home cinema Dolby Pro-Logic and Dolby Digital (with backside acoustics provided) which allow creating home cinema by connecting of video or DVD player. Nevertheless, in spite of the fact that such systems are user friendly, from the point of view of quality, they are worse than systems with additionally connected AV amplifier (receiver) and acoustics. - Plasma This term may imply two devices that are indistinguishable from the point of view of exterior, but quite different from the point of view of their essence: plasma TV set and plasma panel. The former has all attributes pertaining to any TV set it receives TV programs and displays them with sound which is played via inbuilt speakers. It means that it is a ready for use self-sufficient product. The matter is quite different with plasma panels: panel means simple screen (or display) which does not have any in-built TV tuner, and it is not a TV set at all. The principle of functioning of any plasma screen/display (PDP - Plasma Display Panel) is based on the controlled cold discharge of gas (as a rule, xenon and neon) that is in ionization state. It is all called cold plasma - wherefrom the name comes. Like everywhere, dot or pixel is a minimum picture unit on the screen. In plasma display, a combination of three subpixels is used to generate color of every separate dot; every such subpixel corresponds to one of three main RGB colors (Red, Green and Blue). Cells are located between two glasses with distance between them equaling to 0.1 mm (100 micron). During the electric pulse on electrodes, part of charged ions starts UV emission. In most cases, radiation or emission band depends on gas used in a certain model. UV rays act upon special fluorescent covering which emits visible light. UV rays are very dangerous for human eye, but in this case up to 97 percent of harmful emission is absorbed by external glass. Brightness and color saturation may be regulated by simple change of control power: the more intensive power is, the more photons are radiated by gas, the more intensive light fluorescent film has, the brighter picture on the display we obtain. Operational life of plasma panel or TV set does not mean the time of plasma breakdown, it means an expected time of loss of initial image intensity and brightness. Nevertheless in spite of such a parameter, it is not worth concentrating on it specially, since life of filling (electronic or technical), which is available in plasma in large quantities, is essential as well. According to their sizes, plasma TV sets are conditionally divided into three basic groups less 40", 4149 and 50 and more. The second group has the largest number of products where plasma panels of almost all wellknown manufacturers are available (especially it concerns 42). It is connected with the lack of benefit of production of small plasma panels and insufficient demand for large plasmas (60, 61, 63") on the other hand due to their expensiveness and lack of superiority with regard to definition when compared to smaller panels. The higher level of intensity and brightness, the better it is for plasma panel and the brighter and more saturate the displayed picture is. Values of brightness for plasma panels are within the range from 450-500 candelas per quarter meter in relatively nonexpensive 42- 50 to 1,400-1,500 candelas per quarter meter in more technically updated models. With regard to definition, this parameter directly influences number of pixels on the screen and the texture of the image respectively: the higher the definition is, the more pixels are available and the more homogenous the image will be respectively. The

picture is displayed when matrix physical definition is equal to the definition of the input signal. Due to this, to watch DVD (it is hard to find better quality signal) pixel definition is ideal but TV sets with such a matrix are yet not available in the market. To watch TV with 4:3 format and small size (up to 26), pixel definition is quite enough. Larger displays (over 32") have options for HDTV which is soon going to become the standard of video picture in the whole world. pixel definition is a definition that is good for such a signal, although such TV sets cost a lot. Lamp life is one more important peculiar feature of alike TV sets. In most modern LCDs it is equal to 60,000 hours subject to maximum brightness (it is enough for about 16 years subject to 10 hour run every day). However, TV sets with less lamp life are available in the market. For comparison: in plasma TV sets brightness reduces quicker for the same time, and for kinescope TV sets (in this case, phosphor burns out) the threshold is 15,000 20,000 hours, after that quality becomes much poorer. - LED/OLED Organic LightEmitting Diode (OLED) is an organic light emitting diode device manufactured from organic compounds which effectively emit light by passing electrical current through them. OLED technology is basically applied for manufacture of displays. It is expected that production of such displays will be less cost-consuming than LCD production. Thinfilm multilayer structures (several layers of polymers) are used for OLED production. Brightness. OLED displays ensure brightness from several candelas per quarter meter (night time) to very high brightness levels over candelas per quarter meter, and brightness may be regulated in a very wide dynamic range. Since display lifetime is inversely proportional to its brightness, it is suggested to use moderate brightness levels up to 1000 candelas per quarter meter. When lighting LCD display with bright light beam, glares appear, and picture on OLED display become bright and saturate with any level of lighting (illumination) (even in case of direct contact of sun rays with a display). Contrast. OLED is a leader here as well. OLED displays have contrast 1000000:1 (LCD 1300:1, CRT 2000:1) Angles. OLED technology allows watching display from any place and under any angle without any impact on picture quality. Power consumption. OLEDs consume half as much power as LCDs. Need for advantages demonstrated by organic displays is growing every year. This fact allows making a conclusion that boom of such a technology is going to take place soon. LED TV (Light Emitting Diode TeleVision). The term (or concept) was introduced by Samsung for promotion of own line of LCDs with EdgeLED. Usual LCDs use fluorescent lamps (CCFL Cold Cathode Fluorescent Lamp). It is worth noticing that Samsung is not the sole and not the first manufacturer of such TV sets. Sony, Philips and Sharp also manufacture LCDs with LED lighting. As a concept, LED TV evokes many disputes with regard to the issue of lawful use thereof, since technically such TV sets are not 100% LED type TV sets. Modern LEDs are larger than pixels of a modern TV set. Therefore, real use of full value LED matrix is possible in very large displays only, on stadiums for example. From the consumer point of view, LCDs with LED lighting have three enhancements when compared to LCDs with CCFM lighting: 1. Enhanced contrast (unavailable for EdgeLED); 2. Extremely thin (only for Edge-LED); 3. Improved color display (especially RGBLED).

1.3. Basic Parameters of the Market of Home Television Sets, Calculation of the Market Capacity Within the recent years, Ukrainian TV set market has experienced explosion in development and growth. The largest market capacity was reached in 2008 (2,821,300 TV sets sold). However, since crisis has become to be felt, growth rates have slowed down significantly. Several reasons are available - the main ones are the following: Unstable situation in the currency market (since the Ukrainian TV set market basically develops and depends on import of products by major world manufacturers, it may be confidently stated that it also depends on currency fluctuations. In other words, when the foreign currency exchange rate becomes higher with respect to national currency, consumers have less opportunity to buy such goods);
Loss of buying capacity (it is explained by the fact that when crisis has become to be felt, many Ukrainians either have lost constant source of income or it has been reduced significantly. Based upon this, consumers are now attracted by essential goods, and purchases of appliances (for example, TV sets) are postponed to more stable financial situation); Reduction of consumer credits (consumer credits are considered to be one of the powerful activators of market growth and development); governmental 13 percent markup for goods of non-critical import (the duty was introduced in March 6, 2009 effective for a half a year with the purpose of stabilization of state trade balance. However, this law has had a negative impact on suppliers of TV sets to Ukraine they are also forced to raise prices and reduce import) Difficult financial situation for Ukrainian manufacturers (difficult financial situation of Ukrainian manufacturers has resulted in decrease in production of goods); Reduced financing of new projects (market development directly depends on updating and enhancement of product lines, for the last two quarters, the tendency towards reduction is observed). Diagram 1.3.1 Calculation of the Capacity of TV Set Market in Ukraine. 2008 through the first and the second quarters 2009 (thousands TV sets) 2008 558,8 1847,5 6,2399,7 I half 2008 302,8 903,75 3,5 49,8 1252,6 I half 2009 158,9 128,4 3,1 259,9 544,1

* -estimation

2. Production and Sale 2.1. Production and Sales of Home Television Sets (All Types), in numbers Production of TV sets in Ukraine in January through July 2009 reduced by 54.2% or by 187,900 TV sets when compared to the same period in 2008 (to 158.900 TV sets). In July, production of TV sets in Ukraine reduced by 75.5%, or by 33,200 TV sets when compared to the same period in 2008 (to 10,800 TV sets). Diagram 2.1.1 Production of Home Television Sets (All Types) in Ukraine in 2008, in thousands TV sets Month January February March April May June July August September October Noveber December Amount 61,4 57,5 62,6 32,4 42,1 46,30,57,26,3

production started in November 2008. Towards the end of December, it was equal to 51.3% in relation to the proceeding month.

60,00%

Diagram 2.1.4 Production of Home Television Sets (All Types) in Ukraine in the first and the second quarters 2009, %

30,00%

41,52% 22,31% 1,69% 0,00%

April May February March

-5,98%

June July

-30,00%

-33,57%

-60,00%

-42,55%

Volumes of production of home TV sets in Ukraine in the first and the second quarters in 2009 were significantly lower than such figures in 2008 (for the same period). Such decline in production was mainly conditioned by negative influence of crisis on the Ukrainian economy. In particular, unstable situation in the currency market has significantly adjusted pricing policy led by manufacturers of home TV sets. Diagram 2.2.2 Volume and Sale of Home Television Sets (by certain types) 2006 through 2008, in money terms (million USD)

40 46,5 74,8 68,9

2.2. Production and Sales of Home Television Sets (All Types), in money terms Volume of TV sets in money terms was growing 2006 through 2008. For instance, market capacity of TV sets manufactured and sold in 2006 was 80.8 million USD, and in 2008 it was equal to 126.4 million USD. There are several reasons for such a growth. They include without limitation: - annual increase in volumes of products manufactured till 2008; - price growth due to inflation; - introduction in the market of innovative and more technically enhanced products. Diagram 2.2.1 Volume and Sale of Home Television Sets (All Types) 2006 through 2008, in money terms (million USD)

100 80,2008

26,4 18,5 4,CRT LCD 2,07 I half.2009 Plazma

2,59 2007

126,4 96,2
Market growth in 2007 was equal to about 16 percent, and in 2008 growth was at the level of 23.8% when compared to the same period proceeding year.
3. Foreign Trade 3.1. Export (Structure, Geography) Structure of export of home TV sets 2008 through the first and the second quarters 2009 is demonstrated in charts 3.1.1 and 3.1.2. Volumes of export of home TV sets 2006 through 2008 has been gradually decreasing. It has been conditioned by minor competitor ability of Ukrainian products in the world market.
Diagram 3.1.1 Structure of Export of Home Television Sets in Ukraine, 2006 through the first and the second quarters 2009, thousands TV sets

I half. 2009

8590 6646
Since the crisis has become to be felt, consumer preferences have shifted mainly towards the low price segment. In addition, the law was adopted in Ukraine (13% markup for the goods of non-critical import) with the purpose to support national manufacturers and stabilize currency balance in the country. National manufacturers have made efforts to make use of such factors, and they has started negotiating contracts with other countries and sell products that has accumulated in large amounts at their warehouses. Diagram 3.1.2 Structure of Export of Home Television Sets in Ukraine, 2006 through the first and the second quarters 2009, % TV sets

0,00% I half. 2007 -10,00% -15,05% I half. 2008 I half. 2009 -9,91%

-20,00%

-40,00%

-42,00%

-50,00%
However, due to crisis manufacturers has faced rather difficult financial situation, and this factor has not allowed manufacturers to increase export, moreover, export has even decreased.
3.2. Import (Structure, Geography) Comparative structure of import of home TV sets for the period 2008 through the first and
the second quarters 2009 is provided in charts 3.2.1 and 3.2.2.
Diagram 3.2.1 Structure of Import of Home Television Sets in Ukraine in 2008, by countries Unit of measurement TOTAL I. CIS countries AZERBAIJAN BYELORUSSIA KAZAKHSTAN KYRGYZSTAN MOLDAVIA RUSSIAN FEDERATION kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) Amount 14675384,2 1847919,0 91030,3 5645,0 86,0 3,0 75047,0 4076,0 268,0 8,0 48,0 1,0 35,0 1,0 14773,3 1531,0 Cost, thousand USD 161637,3 476,6 0,6 323,0 0,3 0,0 0,2 151,1
TAJIKISTAN TURKMENISTAN UZBEKISTAN II. OTHER COUNTRIES EUROPE AUSTRIA BELGIUM GREECE DENMARK SPAIN ITALY LATVIA LITHUANIA LUXEMBURG HOLLAND GERMANY NORWAY POLAND PORTUGAL RUMANIA SLOVAKIA SLOVENIA UNITED KINGDOM HUNGARY kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) 100,0 2,0 20,0 1,0 653,0 22,0 14584353,9 1842274,0 4255100,9 263392,0 29,0 1,0 30740,1 941,0 21,0 3,0 1593,0 30,0 160325,2 6579,0 6119,2 161,0 57,3 3,0 1472,0 811,0 20,0 1,0 8856,0 692,0 624227,9 41474,0 47,0 3,0 528600,6 77858,0 154,0 9,0 1229,3 171,0 1369129,4 57210,0 350,5 17,0 73577,3 2194,0 1148234,0 65178,0 0,1 0,1 1,2 161160,7 81773,3 0,1 552,5 0,1 23,9 3554,7 105,9 0,6 27,5 0,1 235,1 9409,2 0,3 4783,7 1,2 56,5 28330,6 8,4 1893,1 27015,3
FINLAND FRANCE CZECH REPUBLIC ASIA HONG KONG ISRAEL INDONESIA CHINA KOREA, REPUBLIC MALAYSIA MONGOLIA UNITED ARAB EMIRATES TAIWAN THAILAND TURKEY JAPAN AMERICA MEXICO USA kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) 543,8 171,0 2272,6 188,0 295873,9 9135,0 1627,7 562,0 10326868,9 1578436,0 19714,5 3495,0 35,0 7,0 164825,9 20295,0 6944640,7 1062673,0 1091852,4 312707,0 1351744,4 63849,0 85,0 3,0 100,0 3,0 127788,8 51267,0 262374,8 13840,0 127822,5 41242,0 235885,1 9055,0 2384,2 446,0 550,6 14,0 1833,6 432,0 11,2 82,4 5175,3 505,7 79120,6 121,1 10,4 865,3 47258,7 15092,8 5894,5 0,1 0,3 2301,9 1118,4 1867,1 4590,1 266,8 47,8 219,0

Diagram 3.2.2 Structure of Import of Home Television Sets in Ukraine in the first and second quarters 2009, by countries Unit of measurement Amount Cost, thousand
USD TOTAL I. CIS countries AZERBAIJAN BYELORUSSIA KAZAKHSTAN RUSSIAN FEDERATION UZBEKISTAN II. OTHER COUNTRIES EUROPE AUSTRIA BELGIUM DENMARK SPAIN ITALY HOLLAND GERMANY NORWAY POLAND PORTUGAL SLOVAKIA UNITED KINGDOM HUNGARY FINLAND kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. 441920,9 128426,0 13181,7 1658,0 15,0 1,0 7991,0 405,0 66,0 3,0 4887,7 1239,0 222,0 10,0 428739,2 126768,0 34637,1 1641,0 163,0 5,0 32,0 5,0 2114,2 38,0 2524,2 90,0 743,7 15,0 83,0 4,0 11766,6 494,0 44,0 4,0 2311,9 239,0 231,0 17,0 4979,2 234,0 79,5 16,0 6603,9 282,0 1202,0 5534,5 53,0 0,2 34,5 0,2 17,7 0,5 5481,6 1121,8 1,7 2,1 42,1 44,6 10,9 0,5 63,8 12,3 82,3 20,5 119,0 5,9 139,2 26,1
(quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) kg. (quantity) 162,0 532,0 2,0 1102,0 33,0 125,0 1,0 393499,0 125091,0 9,0 6,0 216792,1 70803,0 90374,1 47874,0 3473,6 213,0 49,0 3,0 3976,8 711,0 65272,4 4644,0 3900,6 266,0 9651,5 571,0 603,1 36,0 72,8 28,0 530,3 8,0
FRANCE CZECH REPUBLIC SWITZERLAND ASIA INDONESIA CHINA KOREA, REPUBLIC MALAYSIA MONGOLIA TAIWAN THAILAND TURKEY JAPAN AMERICA MEXICO USA
381,8 20,5 148,6 4260,2 2,1 1554,2 1999,0 72,5 1,0 71,3 255,5 121,1 183,4 99,6 14,0 85,6
Diagram 3.2.3 Structure of Import of Home Television Sets in Ukraine 2006 through the first and the second quarters 2009, thousands TV sets

2000000

1847919

1600000

1200000

1080587 793712,0

800000
Import of home TV sets for the period 2006 through 2008 was at a high level. For instance, in 2008 import became more than twice as much as the figures for the proceeding year. The Ukrainian TV set market experienced a real boom supported by consumer credits (loans). Therefore, it may be concluded that the market of imported TV sets in 2008 was at the height of its development (models from medium and high price segments were mostly preferable). As the crisis has become to be felt, market situation has changed significantly. It became almost unprofitable to import new products to Ukraine. It was conditioned by several reasons. - governmental 13% duty for the goods of non-critical import; - reduction of consumer credits and raise of credit interest rates; - decrease in salaries and reduction of buying capacity as a result of this.
4. Basic Market Operators (TOP 15) 4.1. List and Description of the Basic Market Operators Seven basic operators are available in the Ukrainian TV set market. They occupy the largest market share. For instance, aggregate share of these operators was equal to 89 percent in the first and the second quarters 2008, but it has somewhat decreased in the first and the second quarters 2009 (to 81 percent) due to crisis phenomena and appearance of minor operators that started aggressive pricing policy with the purpose of occupation of own niche. Nevertheless, leading operators continue retaining their leading positions in the market due to quality of the goods offered and numerous options and opportunities provided by service centers located almost in every point in Ukraine. Such market operators include without limitation Samsung, LG, Philips, Sony, Sharp, Toshiba and Panasonic. Minor manufacturers that occupy small market share include without limitation Daewoo, Hitachi, JVC, HANNspree, Pioneer, NEC, Orion, Electron. As a rule, these manufacturers are introduced in one of market segments, i.e. CRT, LCD or plasma. When a manufacturer is available in several segments, the choice provided by such a manufacturer is not large, and it does not exceed 20 to 30 names as a rule. As a rule, such companies benefit due to reasonable prices, though exceptions are still available. Samsung Samsung was founded in 1969. A year of cooperation with Sanyo Electric has led to merger and appearance of Samsung Electronics Corporation. Company consolidated sales were equal to 103.4 million USD in 2007. Samsung Electronics employs about 150,000 employees working in 134 offices in 62 markets. The Company has five main units: Digital Appliance Business, Digital Media Business, LCD Business, Semiconductor Business and Telecommunication Network Business. rd Address: 3 level, 3 Spaska St., Kyiv 04070; phone: (044) 490-64-53, 490-64-24, phone/fax: (044) 490-64-94, hot line 8(800)502-00-00. www.samsung.com.ua LG LG Electronics Inc. (headquarters located in Seoul, South Korea) was founded in 1958 and is now a recognized world leader in the sphere of electronics, information and telecommunication technologies. 1996 LG Electronics has established its representation office in Ukraine with the purpose to inform potential buyers about LG products. In the worldwide scale, sales were equal to 11.3 billion USD in 2008 that is 1.2% higher than proceeding year. Address: LG Electronics Representation Office, 1 Dniprovsky Spusk, Kyiv. phone: 8(044)201-43-504 fax: 8(044)201-43-73; hot line: 8(800)303-00-00 www.ua.lge.com Philips The Company was founded in 1891. Nowadays, Philips is one of the major transnational world companies with sales equal to 26.7 billion Euros in 2007. Manufacturing facilities are located in 28 counties, and the products are sold in 150 markets. Costs for research and development were equal to 1.6 billion Euros in 2007, i.e. 6.1 % of total turnover. th Address: 7 level, 4/6 Grinchenko St., Kyiv 01042. phone :( 044)490-98-48, fax 490-98-56. www.philips.com; http://www.lighting.philips.com/ua_uk; Sony Company was founded in 1946. Sony manufactures audio and video players, mp3players, DVD-players, projecting and LCD-TVs, monitors and electronic components. Among the company's products such brands as VAIO, Bravia and Walkman. Sales for the 2008-09 - $ 80 billion, net loss - $ 1 billion. Representative Office in Ukraine Spasskaya Str, 30, Kiev, 04070 Phone: (044)490-63-11, (044)490-63-29 http://www.sony.ua Contact of the information center for consumers JSC Sony CIS Karamyshevsky passage, 6, Moscow, 123154, Russia, Phone: 8-( 800) 307-66-90, +7 (495) 25876-50 Sharp History of Sharp Corporation began in 1912. Currently, SHARP is a broad network of subsidiaries engaged in manufacturing and

Average prices of plasma televisions produced by the leading manufacturers ($) Model name Samsung LG Philips Sony Sharp Toshiba 21 22-25 Length of diagonal 26-29 30-32 34-42 954,2 581,5 984,3 1059,2168,1404 -
Panasonic Daewoo Hitachi JVC HANNspree Pioneer NEC Orion Electron 1336,1847,2 1646,4259,5 * - estimation
Analysis of prices of plasma display panels was conducted on a similar structure with the analysis of LCD TVs. It should be mentioned that in the segment of plasma TVs manufacturers Sony, Sharp and Toshiba are not represented in the Ukrainian market. Another feature is that a lot of plasma TVs available on the market is concentrated in the segment with 34-42 inches and more than 43 inches. The most expensive models of plasma TVs are TVs with 34-42 inches produced by Pioneer, then TVs produced by NEC and Panasonic. TVs produced by Daewoo in this segment is the cheapest. In a segment of more than 43 inches price leaders is NEC, however, in second place is company Pioneer, then Panasonic. The most budget models in this segment are TVs produced by Philips.
Diagram 5.3.1 Dynamics of TVs average prices in ($)

2008 I half. 909 2012

Plazma
5.3. Dynamics of average prices of TVs for the period 2005-2009 It is worth noting that on the TV market there is a tendency to reduce the prices of all types of TVs. However, the amount of decrease in average price, depending on the type of TV (CRT, LCD or plasma) and it is different. The most expensive are plasma TVs, but they are not as common as LCD, the price of which is acceptable to most consumers. The most common are CRT TVs, however, the price for them is much lower than on LCD TVs or on plasma TVs. This is because CRT technology has long been on the market and is technically old, it is not able to fully meet consumer preferences for quality of the image.
The smallest price decrease from 2005 was for CRT TVs (from $ 187 to $ 156). The decline in this segment estimated as only 16,5%. Regarding LCD TVs, the situation is different. In the market there was more dynamic decrease in the average prices of similar models. The price in 2005 was $ 928, and in 1 half of 2009 already estimated as $ 670. The estimated decrease during this time period was 27,8%. However, the greatest decrease in average price was estimated in the segment of plasma TVs (from $ 2080 in 2005 to $ 950 in 1 half of 2009). The reduction amounted to 54,3%. The reasons for reducing the average price for different types of TVs are different.

Hitachi CRT TVs. Not represented in Ukraine. LCD TVs. Represented by one model Hitachi L42X01A, average price is $ 1375. Plasma TVs. Represented by a model called Hitachi P50X01A. Average price is $ 2597. JVC CRT TVs. Range includes 7 models of TVs. LCD TVs. Models diversity has 15 TVs. Price range varies from $ 479 to $ 1,591 depending on diagonal size and technical characteristic. Plasma TVs. Not represented in Ukraine. HANNspree CRT TVs. Not represented in Ukraine. LCD TVs. Presented only LCD displays with original design (usually they have small size 9,6-15 inches). There are 18 models on the market. Price range is - $ 111 - $ 2438. Plasma TVs. Not represented in Ukraine. Pioneer CRT TVs. Not represented in Ukraine. LCD TVs. Company presents 3 models in price range from $ 1592 to $ 3013 depending on a model. Plasma TVs. There are 18 models of plasma TVs on the market of Ukraine. Prices lie in the range - $ 1716 - $ 7575. NEC CRT TVs. Not represented in Ukraine. LCD TVs. Not represented in Ukraine. Plasma TVs. The TVs range of NEC represents 6 models on the market. Their price range - $ 1633 - $ 6075. Orion CRT TVs. Represented in all categories of CRT TVs. Price range varies from $ 85 to $ 221. There are 7 models of TVs of the kind. LCD TVs. There are 2 products on the market (Orion LCD1926 and Orion LCD2028). Average price is $ 226 - $ 259. Plasma TVs. Not represented in Ukraine. Electron CRT TVs. Assortment of these TVs is much wider than LCD panels. There are 20 models of TVs of the kind. Models are in the price range: $ 115 - $ 247. LCD TVs. Range includes 7 models. Prices of products vary from $ 422 to $ 515. Plasma TVs. Not represented in Ukraine.

7. Consumption of goods

Lower 500$ 500750$ 7501000$ I Q 2008 10001250$ 12501500$ More 1500$ 32
It can be said that LCD TVs have finally replaced the outdated CRT TVs. It happened on the market of Russia as well as on the Ukrainian market. CRT still has high popularity, but mainly due to low prices and availability. At the moment more consumers prefer to buy expensive, but much more advanced LCD TV. It should be mentioned that sales of CRT TVs take place in ordinary stores, while LCD TVs is mainly sell through online stores. The reason of this lies in the fact that CRT TVs buy people, who are far from technology development; often these people dont have an access to the Internet. Plasma TVs are gaining popularity thanks to the good image, excellent viewing angles, lack of tail area in dynamic scenes and possibility of production models with a diagonal size more than 60 inches. However, there are some disadvantages: short lifetime (about 20 thousand hours of continuous operation), burnout of pixels when using static image, as well as the weight of panels, which causes inconvenience when installing it. Moreover, builtin cooling fans utter faint noise, which becomes especially noticeable after three hours of continuous operation. There is a slight increase in the market of projection equipment. Now, projectors can be bought not only by companies for the office presentations but also by ordinary users who want to create home theaters. However, the percentage of those buyers is still very low. However, the economic crisis still left a negative impact on the TV market. This is mainly affected the development and application of new technologies. Manufactures do not want to risk and they are slow to invest big money into research. For example, investment in such a promising but expensive technology as OLED was reduced. Diagram 7.1 Changes of customer preferences about prices when buying LCD TVs during the year, %

Pioneer KRL-32V ($11601695). Plasma TVs. Pioneer PDP-5080XD ($18502199); Pioneer PDP-508XD ($1934 2369). NEC Plasma TVs. NEC PlasmaSync 50XP10 ($19703500). Orion CRT TVs. Orion STP1525FL ($95117); SPP2920FL ($194224). LCD TVs. Orion LCD2028 ($229357). Plasma TVs. Electron CRT TVs. ELECTRON 54-703 slim ($123145). LCD TVs. ELECTRON 81-980 ($453560). Orion 8. Distribution channels Sales channel (or sales) is a way which goods use during the sales process from supplier to consumer. For distribution management the most important strategic decisions are to choose a distribution channel structure. Making this decision the manufacturer actually predetermines the success or failure of promotion of a trademark on the market. But also there are some reasons for the slow growth of goods sales. They include these reasons: delays because of production facilities expansion; some technical problems (improve of technology); delays in bringing the goods to consumers through retail outlets; reluctance of consumers to change familiar patterns of behavior. In case selling of costly novelty such as TV with a high resolution the growth in sales is constrained by several other factors. One of them is that there is few consumers who can afford to buy a new product. When a company introduces new products, it usually bears losses or receives small profit due to low sales and high costs of distribution management and advertising. Work with sales representatives also costs dearly. During this period the size of ratio between promotion costs and sales is the biggest because it is necessary to: inform potential customers about a new product, which is unknown yet; persuade them to test products and provide sales through retailers. Main efforts on selling goods a company directs to attract consumers who are most prepared to make a purchase. Usually these consumers are members of a group with high income. In addition, prices at this stage are high because of: high costs caused by the relatively slow growth of production; technological problems arising at the stage of development of production; high trade margins necessary to cover the high costs of promotion activities, which are essential to increase growth in sales. Many manufacturers are working with the assistance of other companies who bring goods to the market and manage a distribution channel.

There are 3 main sales channels for TVs. These include the following: retail sales through online retailers, large supermarket chains of electronics, as well as the signing of contracts at the major exhibitions of household appliances. Diagram 8.1 Structure of TVs sales through the main distribution channels, % Internet shops attract consumers with the help of lower prices than in electronics stores. Price is reduced due to fewer staff than in large supermarkets and less deductions for employees' wages. Weaknesses include relatively small volumes of sales, logistical difficulties and delays with goods delivery.

Exhibition 22%

Internet shop 27%

Supermar ket 51%

The largest international exhibitions include: CES (Consumer Electronics Show) in Las - Vegas; International 3GSM - Congress in Barcelona; The world's information technology, software, telecommunications, services, and CTI - solutions) in Hanover; IFA (International Franchise Association) in Berlin. Existing distribution channels can be ranked in order of decline following way: 1. Special exhibitions; 2. Large supermarkets of electronics; 3. Internet - shops. Each of them has its advantages. For example, as a rule at trade shows to sigh contracts to supply large quantities of equipment between manufacturers and distributors or representatives in various regions. Weaknesses include the logistical problems and additional costs for the presentation. In large supermarkets there are shop assistants who help customers to choose the right model of a TV. Weaknesses include usually overcharge for products, some supermarkets sell mainly cheaper TVs.
9. Summary. Forecast for the market capacity until 2011 Summary During market development of TVs in Ukraine and in the world producers make some changes to accents attributed its products. Producers tried to demonstrate models with the largest diagonal size to consumers in 2005-2006. One of the major trends in the market in 2007-2008 was the thickness of the proposed models. All brands tried to provide thin LCD panels or TVs based on organic light emitting diodes (OLED - Organic Light Emitting Diode). Most manufacturers have relied on green TVs in 2009, reducing their energy intensity, convergence of television and the Internet. For example, the level of electricity consumption in some models of Sharp's TVs is now up to 60W. There was also a stable tendency to develop three-dimensional television (3D). To use these TVs, you need to wear special glasses (for consumers with poor eyesight it would be difficult to do). Nevertheless, despite these difficulties, manufacturers do not stop in an effort to develop this area. Such trends will lead to the development of 3D-content: movies, games, etc. It should be mentioned that such TVs need a three-dimensional video signal, which must make serious adjustments in production of sources of this signal. This can lead to slow implementation of this technology on the market. On the other hand, the most promising and advanced technology OLED displays was left without proper attention. This technology is very capital intensive since it requires large financial infusions in the research and in the market in future. Not the least role in this issue played the global financial crisis which reduced the income of the leading manufacturers of TVs. It was one of the reasons why investment in the development of OLED technology is deferred until more suitable time. Despite these difficulties, it is worth mentioning that LCD TVs with LED backlight technology will become the most popular product in the Ukrainian TV market in the near future However, it should be mentioned that the price of such technological devices will be significantly higher than price on ordinary LCD TVs (up to 50% more expensive, depending on the model and manufacturer). Therefore, despite large potential of the market, sales of such TVs will be limited because of low level of solvency. Sharp increase in consumption of OLED TVs (the most priority direction of the Ukrainian TV market) is possible only with resumption of lending money by banks at pre-crisis levels or in case of price reduction. Forecast for the market capacity in 2011 It is worth mentioning that in the period from 2009 to 2011 domestic TV market will grow. By the end of 2009 the market will not develop actively. The first reason for this the market will be affected by the global crisis. The other reason is unsold products on warehouses.

Diagram 9.1 Forecast for the domestic TV market in 20092011, thousand units
1052 1324,7 0,1 1755,8 0,2 25,92% 32,54% 0,3 0,4
Resumption of the foreign manufacturers expansion on the Ukrainian market is expected in 2010. Growth of the market could reach 26%. Resumption of model lines of the main producers on the market and increase of competition among operators is also expected. These factors will positively affect the volume growth of the market. These major trends will also be relevant in 2011. It is expected to increase the market capacity to 32,5% (comparing to 2010) during this period. The increase will be occurred because of lower impact of crisis on the Ukrainian economy; the public confidence to the banking system will also increase and as a result of this increase of lending to the population (consumer loans). However, it is not expected to reach market capacity of pre-crisis level.
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