A STUDY ON BRAND PROMOTION IN ONIDA

1

EXECUTIVE SUMMERY

2

EXECUTIVE SUMMERY
Branding your business You need to stand out from the herd when it comes to business. You need to be better, stronger and more adaptable than your competitors. You need to be eye-catching, fresh and hard to pass by. And if you have a brand you have an immediate advantage because you have a backbone, or a frame work, on which to hang your products. A branded business carries with it an ideology. If people know the brand they know the company and what it stands for. But what is a brand? A brand is the set of values, ideals, strengths and weaknesses that become tied to your business. A brand carries with it the power to inspire and influence your customers; it creates a set of subconscious associations in their minds and sets you apart from the herd. What do you think of when you think of a top brand? 1. Quality 2. Reliability 3. Customer service Or do you think of their advertising campaigns? 1. Their Logos 2. Their Slogans 3. Their Promises It’s amazing how much advertising promotion we absorb every day. Logos, slogans and associated advertising methods (particularly background music) stick like mud. “The car in front is a (?)”…”I’m loving it”… “Think different”… “Welcome to our Network”… Just a few, but I’m certain you can name the brands.

3

Brand promotion strategies You need to think big. You need to think out of the box. You need to dispel any notions of what is ‘usual’ or ‘expected.’ You need to grab your audience and you need to keep them until they are fully aware that you exist and that you mean business. Look to your business mission statement and ask what it is that you want to promote. Of course you need to sell your product, you need to make money, but you also need to survive, and in order to do that you need to form an impression on your market. Don’t copy your competitors, be original instead look to companies that inspire you for inspiration. Word of mouth is by far the most effective form of advertising. People ignore Pop-up windows, but they’ll listen to their best friend. If you provide a quality service people will recommend you. Customers want quality. If you can provide quality at a decent price they will come back, inspiring customer loyalty is part of a strong brand identity. You may want to hire a professional to help shape your business model, or to improve your advertising scheme. Remember Don’t limit yourself; putting blinkers on is a way of staying focussed; but it also leads to missed opportunities.

4

INTRODUCTION TO THE COMPANY

5

INTRODUCTION TO THE COMPANY
About ONIDA How it all began Onida was started by Mr.G.L.Mirchandani and Mr.Vijay Mansukhani in 1981 in Mumbai. In 1982, Onida started assembling television sets at their factory in Andheri, Mumbai. Superior products and the combination of a distinctive voice, a cutting-edge advertising strategy, and purposeful marketing ensured that Onida became a household name. Over the years, Onida has strengthened its reputation for the intelligent and pioneering application of technologies. Onida Today Onida today enjoys a strong equity among consumers making it one of the leading brands in India. Our constant endeavor to introduce products of substance that offer the very best in technology and the finest design have made Onida a leading player in the electronics and entertainment business today. Onida has recently made a foray in other household appliances including air-conditioners, washing machines, DVDs, Plasma & LCD televisions and home theatre systems. For offices, Onida has also introduced state-of-the-art multi-media presentation products. The Network Onida has a network of 33 branch offices, 208 Customer Relation Centers and 41 depots spread across India. MIRC Electronics shares are listed on the National and Mumbai Stock Exchanges. The company enjoyed a market capitalization of Rs.301.46 Cr. as on 31st March 2005.

6

The transition of Onida from a family-owned business to a professionally managed company has largely been made possible by the vision of the Chairman & Managing Director, Mr.G.L.Mirchandani. Vision and Mission Our Vision To build a brand around substance. To communicate simple truths that customers understand. To become a leader in our chosen field and become a globally recognized, prestigious company through synergistic business investment, differentiation through innovation, passion through empowerment, cost through economies of scale and world class systems and procedures that bring in delight of stakeholders. Our Mission To benefit society at large through Innovation, Quality, Productivity, Human Development and Growth, and to generate sustained surpluses, always striving for excellence, within the framework of law, and in nothing but the truth in which we base every action. Corporate Philosophy Commitment to society/nation We respect the society and the environment to which we belong and will contribute to its progress and welfare. Passion for quality Strive to create products with substance, that are the best in class. Never compromise on quality. Give our customer better value-for-money, always. Fairness

7

We stand for truth, fairness and justice in all our business and individual dealing without this spirit, no man can win respect no matter how capable he may be. People - our greatest assets We value good people. It is our responsibility to create actively and constantly an environment that supports them to grow and flourish. Harmony and co-operation Alone we are weak. Together we are strong. Work together as a family in mutual trust and responsibility. Courtesy and Humility Respect the right of others. Be cordial, modest and humble. Praise and encourage freely. Strive for continuous improvement ( KAIZEN ) Seek and find in every action a way to do things better, always better. Growth Growth is vital. Increasingly seek out ways and means to constantly move forward. Innovation Progress by adjusting to ever-changing environment around us. As the world moves forward, we must keep-in-step. Gratitude Always repay the kindness of our customers, associates, community, nation and friends worldwide with gratitude.

8

CODE OF BUSINESS ETHICS AND CONDUCT Mirc Electronics Ltd has adopted this Director's Code of Business Ethics and Conduct to govern the conduct of the members of the Board of Directors to ensure that its business will be conducted with honesty and integrity, and to provide a mechanism for disclosure leading to informed decisions on matters involving the business ethics of Mirc Electronics Ltd. All Directors and Senior Management must act within the bounds of the authority conferred upon them and with a duty to make and enact informed decisions and policies in the best interests of the company, its shareholders and stakeholders. No code or policy can anticipate every situation that may arise. Mirc shall be committed in all its actions to benefit the economic development of the countries in which it operates. It shall not engage in any activity that would adversely affect such an objective. As an aid of maintaining the high standards that Mirc requires, the following rules of conduct should be observed in all activities of the Board : Honesty & Integrity All the directors alongwith the senior management shall deal on behalf of the company with professionalism, honesty and integrity, as well as high moral and ethical standards. All directors will act in good faith, responsibly, with due care, competence and diligence, without allowing their independent judgement to be subordinated. Directors will act in the best interests of the company and fulfill the fiduciary obligations. Conflict of Interest Mirc respects the right of any director to participate in outside financial business or other activities provided those activities are legal and are not in conflict with the directors duties. Accordingly, directors on the board of the company shall not engage in any business, relationship or activity, which may be in conflict of interest of the company or group. Conflicts can arise in many situations. It is not possible to cover every possible conflict situation and at times, it will not be easy to distinguish between proper and

9

improper activity. Set forth, are some of the common cicumstances that may lead to a conflict of interest, actual or potential : a) Directors should not engage in any activity / employment that interferes with the performance or responsibility to the company or is otherwise in conflict with or prejudicial to the company. b) Directors and their immediate families should not invest in company, customer, supplier, developer or competitor and generally refrain from investments that compromise the responsibility to the company. c) Directors should avoid conducting company business with relative or with a firm/ company in which a relative/ related party is associated in any significant role. If such related party transaction is unavoidable it must be fully disclosed to the board or to the CFO of the company. Compliance Directors and the senior management personels are required to comply with all applicable laws, rules and regulations, both in letter and in spirit. In order to assist the company in promoting lawful and ethical behaviour, directors and the senior management must report any possible violation of law, rules, regulation or the code of conduct to the company secretary. If the ethical and professional standards set out in the applicable laws and regulations are below that of the code, then the standards of the code shall prevail. Other Directorships The Company feels that serving on the board of directors of other companies may raise substantial concerns about potential conflict of interest. And therefore, all directors must report / disclose such relationships to the Board on an annual basis. It is felt that service on the board of a direct competitor is not in the interest of the company. While investing in a company, customer, supplier, developer or competitor, the directors must first take great care to ensure that these investments do not

10

compromise the responsibilities to the company. Many factors should be considered in determining whether a conflict exists, including the size and nature of the investment, ability to influence the company's decisions, access to confidential information of the company or of the other company, and the nature of relationship between the company and the other company. Related Parties As a general rule, the directors and the senior management must avoid conducting company business with a relative or significant other, or with a business which a relative significant other is associated in any significant role. Relative include :
                   

Father Mother (including step mother) Son (including step son) Son's wife Daughter (including step daughter) Father's Father Father's Mother Mothers' Mother Mothers' Father Sons' Son Sons' Son's wife Sons' daughter Sons' daughters' husband Daughters' Husband Daughters' Son Daughters' Son's Wife Daughters' Daughter Daughters' Daughters' Husband Brother (including step-brother) Brothers' Wife

11

 

Sister (including step sister) Sisters' Husband

The Company discourages the employment of relatives in positions, assignments within the same department and prohibits the employment of such individuals in positions that have a financial dependence or influence (e.g., an auditing or control relationship, or a supervisor/ subordinate relationship). The purpose of this policy is to prevent the organisational impairment and conflicts that are a likely outcome of the employment of relatives or significant others, especially in a supervisory/ subordinate relationship. If a question arises about whether a relationship is covered by this policy the Human Resource Department is responsible for determining whether an applicant's or transferee's acknowledged relationship is covered under this policy. The Human Resource Department shall advise all affected applicants and transferees of this policy. Wilful withholding of the information regarding a prohibited relationship/ reporting arrangement may be subject to corrective action, up to and including termination. If a prohibited exists or develops between two employees, the employee in the senior position must bring this to the attention of his/ her supervisor. The Company retains the prerogative to separate the individuals at the earliest possible time, either reassignment or by termination, if necessary. Confidentiality of Information The Company's confidential information is a valuable asset. Any information concerning the company's business, its customers or other entities which is not in public domain and to which the director has access or possesses such information, must be considered confidential and held in confidence, unless authorised to do so and when disclosure is required as a matter of law. No director shall provide any information either formally or informally, to the press or any other publicity media, unless specially authorised. This obligation extends to confidential information of third parties, which the company has the rightfully received under Non-Disclosure Agreements.

12

Insider Trading Any director or the senior management of the company shall not derive benefit or assist others to derive benefit by giving investment advice from the access to and possession of information about the company, not in public domain and therefore constitutes insider information. All the directors' and the senior management of the company will comply with insider trading guidelines issued by SEBI. Insider Trading rules are strictly enforced, even in instances when the financial transactions seem small. The company has imposed a trading prohibited period on the members of the Board of the Directors, executive officers and all employees who has, as a consequence of their position with the company, are more likely to be exposed to material non public information about the company. These directors, executive officers and employees generally may not trade in company securities during the prohibited period. For more details, and to determine if you are restricted from trading during the prohibited periods, you must read the company's insider trading rules. You must read the insider trading rules carefully, paying particular attention to the specific policies and the potential criminal and a civil liability and/or disciplinary action for insider trading violation. You should comply with the company's insider trading rules, follow the pre-clearance procedures for trading and trade only during a trading window. Gifts & Donation No director or the senior management of the company shall receive or offer, directly or indirectly, any gifts, donations, remuneration, hospitality, illegal payments and comparable benefits which are intended (or precieved to be intended) to obtain business (or uncompetitive) favours or decisions for the conduct of the business. Accordingly, each directors must ensure that dealings with third parties with whom the company does business are concluded on terms that would generally be available to persons without the status of director or directors' family members. Nominal gifts

13

of commemorative nature, for special events may be accepted and reported to the Board. Protection of Assets Directors' must protect the company's assets, labour and information and must be used only for the legitimate business purposes. Any misapplication or improper use of the company's assets or property must be reported to the Human Resource Department or the Administration Department promptly. All the directors and the senior management employees responsible for the use of company assets, and must safeguard the assets against loss, damage, misuse or theft. Company's Brand and logo 'ONIDA' and ‘IGO’ are the registered brands and trademarks of the company in India. The same should be conspicuously marked with Registered designation or with a notation that it is a registered trademark of the company whenever they are first used in any medium, presentation or other promotional context. Corporate Opportunities Directors must not take for their own personal benefit, or that of any member of their immediate family, any oppurtunity that are discovered through the use of the company's property, information or position unless the oppurtunity is disclosed fully in writing to the company's board of directors and the board of directors declines to pursue such oppurtunity. Periodic Review Once every year or upon revision of this code, every director must acknowledge and execute an understanding of the code and an agreement to comply. New directors will sign the written acknowledgement at the time service begins.

14

Milestones 1981 : MIRC Electronics Pvt. Ltd. was established 1982 : CTV production started at Nand Bhavan, Mumbai 1983 : Technical collaboration with JVC, Japan for CTV 1985 : Established in-house R&D wing 1986 : Production expanded and moved to a new factory at Kalina 1987 : Moved to our own factory building "ONIDA HOUSE" : Iwai, Speaker plant commences its operation 1990 : Tuner plant commences operation 1991 : Akasaka, PCB plant commences its operation : New CTV manufacturing plant at Vasai commences operations 1992 : Crossed 1 million CTV sales 1994 : Moved to a fully automated Plant of 600K CTV per year at Wada 1995 : ISO 9001 certification obtained from BVQI 1998 : Award for excellence in electronics by ministry of IT 1999 : First in India to develop Internet enabled CTV 2000 : Launched the KY Thunder, Profile Series 2001 : AV Max award for best CTV. : Launched Onida Black, flat CTV range : Multimedia projectors launched : Commenced project to expand CTV capacity to 1 million 2002 : Completed plant expansion project to increase capacity from 600K CTVs to 1.2 million CTV's per year. : Launched 'KY Theatre' with circle surround sound, the first complete Home Theatre package : Launch of 'Igo'- the economy brand : Launched VCD player 2003 : Launched world's first LCD remote 'i-Control' : Launched Air-conditioners : Launched Rear Projection TV, Plasma TV & DVD Players : Launched Fully Automatic front loading Washing Machines : A MIRC product is getting sold every 27 seconds : Operations started in Russia 2004 : Launch of the 'Oxygen Series' CTV : Crossed Sale of 250,000 CTV's in October month

15

: Launch of Microwave Owens : Mr.Gulu Mirchandani, CMD awarded 'Man of Electronics for the year' by CETMA 2004- 05 : Achieved 1.20 million CTV sales 2005 : Launch of 'POISON' range of CTV's Management Mr. Gulu Mirchandani (Chairman & Managing Director) Mr. Vijay Mansukhani (Managing Director) Mr. G. Sundar (Chief Executive Officer) Mr. Satrajit Ray (Chief Financial Officer) Mr. S. Ravishankar (Chief Technology Officer - Audio Visual) Mr. C. R Talati (Vice President - Operations) Mr. Kiriti Sen (Vice President - Human Resources) Mr. Sriram Krishnamurthy (Vice President - Marketing, Sales & Service)

16

Products LCD TV Presenting the Onida LCD Television made for that inner self who wants to savor the best things in life. Televisions A full range of flat screen televisions with edge-to-edge picture clarity, designer televisions and KY Series that carry the unique "KY Indisde" technology Air Conditioners An array of window and split models with a host of features that have redefined the rules of buying air conditioners. Washing Machines A wide range of semi and fully automatic washing machines designed with a 400 watts motor to fully harness the power of water to give you a perfect wash. Microwave Oven Onida, a brand synonymous with cutting edge technology and an integral part of millions of households in India now brings you the Onida Microwave Oven. Projectors and Display Products Plasma display, visual presenters, multimedia projectors - enhance your presentations with next generation technology.

17

OBJECTIVE OF THE STUDY

18

OBJECTIVE OF THE STUDY
The research project is mainly divided into two parts first one is study about ONIDA company profile and the second is what the brand promotion in ONIDA. The subjects under these two parts are 1. General study ONIDA a. To study about ONIDA company profile. b. To study about advertisement of ONIDA 2. what are brand promotions in ONIDA a. A survey on consumer awareness about brand ONIDA.. b. analyzing the data on the basis of survey findings The study will end with a conclusion giving a reflection of whole project and recommendations on the basis of data findings.

19

PURPOSE AND SCOPE OF THE STUDY

20

PURPOSE AND SCOPE OF THE STUDY
Purpose of the study
The main purpose of this study is to analyze the brand promotions of the ONIDA and the brand image of ONIDA in customers

Scope of the project
This project will be very helpful to two • • The dealer The ONIDA

This project will be an information guide to the company for increasing the brand image. They will avail with the popularity of the ONIDA and the brand image between customers.

21

LIMITATION OF PROJECT
1. The Survey was conducted at the Western U.P. 2. The Survey was conducted with the help of self administered Questionnaire. 3. The respondents were found short of time so the responses may not real. 4. The data collection was primary.

22

BRAND PROMOTION IN ONIDA

23

24

The best five flat CRTs to go for this festive season

Onida 29 Poison Theatre Onida’s 29-inch flat Poison Theatre is truly an owner’s pride. It comes with 10 speakers and a surround sound system. It has 200 channels with features like auto off, auto sound leveler and on screen display. It is compatible with games and DVD players. The highlight feature of this flat CRT though is the pair of satellite speakers bundled with the TV to offer added punch to the audio. They also give the TV a classy look.

25

Look Who's Calling? Onida. The name you've proudly brought home as a leading brand of consumer electronics and home appliances. Only now, it's some thing new. ONIDA MOBILE PHONES. With Onida you know you can rest assured. About quality with a distinct edge. About impeccable trust and cutting-edge technology. Because there lies the bedrock of two decades of implicit relationships. Now, there's a wickedly-tempting range of mobile phones waiting for you to pick from. Come it's time to call. Mobile phone series include: F Series, G Series, and V Series. Have a try here

26

27

Onida is in the process of carving out a place for itself, right in the parallel lane with the international biggies pouring their electronic gadgets from the Far East. Whatever the genre, Onida is not far behind. This time we are spotlighting a trendy looking DVD player of theirs, called The Atom. The model is HDR-5522, and it bears a striking resemblance to a Samsung model. It’s not yet released; but we have their demo model to check, so let’s see what this new player can do in terms of performance.

Design There is credit to be given for aesthetic innovation, as this unit is definitely a looker. With an unconventional shape for a DVD player, it comprises fluid curved edges and surfaces vaguely resembling a square when viewed from the top, but rounded edges and surfaces make up the deal. It is not sleek; in fact it has considerable thickness or depth. The finish all around is a glossy black piano finish, with an Onida logo printed on the left bottom corner of the top panel, along with Dolby and DTS logos. Seamlessness is the key here, with the top panel buttons being touch sensitive, flush mounted into the surface very well, entirely flat and smooth. The symbols of ‘stop’, ‘play’ etc. is printed on, which looks real good, but might be a problem in a dark environment as the remote also does not glow. The remote is a slim black one, a simple piece well laid out with similar sized round buttons, some of them blue while the rest black. The build quality is not as good as the looks, but not so weak. Yes, the tray is one of those thin ones, which can bend. Still, if handled with care we can get by, I presume. The weight is light, no real heavy electronics inside, but this is a good thing for portability.

28

Features and specs This unit does have a fancy design, but also comes loaded with good connectivity options. There is an HDMI out, and also a USB 2.0 input for flash drives, and also memory (SD,MS,MMC) card slot. Also, we have optical out, and also discrete 5.1 analog audio out. Last but not least there is component, S-video and composite video out. Feature-wise Onida has taken a step by including a special “better than the average” deinterlacing chip called Media Direct De- Interlace (MDDi). It aims to enhance picture smoothness and reduce jaggie artifacts in object borders in the video, due to interlaced video in DVDs. DivX/Xvid playback is supported, and last but surely not the least, the Atom player upscales to 1080p, that’s quite nice, we’ll take that thank you.

29

TV ADS Ads Check out the latest TV commercials from Onida. Just click on any of the commercials below, that you want to see. You can also forward this page to your friends, so they can view them as well.

30

RESEARCH METHODOLOGY

31

RESEARCH METHODOLOGY
Research methodology is considered as the nerve of the project. Without a proper wellorganized research plan, it is impossible to complete the project and reach to any conclusion. The project was based on the survey plan. The main objective of survey was to collect appropriate data, which work as a base for drawing conclusion and getting result. Therefore, research methodology is the way to systematically solve the research problem. Research methodology not only talks of the methods but also logic behind the methods used in the context of a research study and it explains why a particular method has been used in the preference of the other methods

RESEARCH DESIGN
A Research Design is the framework or plan for a study which is used as a guide in collecting and analyzing the data collected. It is the blue print that is followed in completing the study. The basic objective of research cannot be attained without a proper research design. It specifies the methods and procedures for acquiring the information needed to conduct the research effectively. It is the overall operational pattern of the project that stipulates what information needs to be collected, from which sources and by what methods.

Types of research is: Descriptive Research
The type of research adopted for study is descriptive. Descriptive studies are undertaken in many circumstances when the researches is interested to know the characteristic of certain group such as age, sex, education level, occupation or income. A descriptive study may be necessary in cases when a researcher is interested in knowing the proportion of people in a given population who have in particular manner, making projections of a certain thing, or determining the relationship between two or more variables. The objective of such study is to answer the “who, what, when, where and how” of the subject 32

under investigation. There is a general feeling that descriptive studies are factual and very simple. This is not necessarily true. Descriptive study can be complex, demanding a high degree of scientific skill on part of the researcher. Descriptive studies are well structured. An exploratory study needs to be flexible in its approach, but a descriptive study in contrast tends to be rigid and its approach cannot be changed every now and then. It is therefore necessary, the researcher give sufficient thought to framing research. Questions and deciding the types of data to be collected and the procedure to be used in this purpose. Descriptive studies can be divided into two broad categories: Cross Sectional and Longitudinal Sectional. A cross sectional study is concerned with a sample of elements from a given population. Thus, it may deal with household, dealers, retail stores, or other entities. Data on a number of characteristics from sample elements are collected and analyzed. Cross sectional studies are of two types: Field study and Survey. Although the distinction between them is not clear- cut , there are some practical differences, which need different techniques and skills. Field studies are ex-post-factor scientific inquiries that aim at finding the relations and interrelations among variables in a real setting. Such studies are done in live situations like communities, schools, factories, and organizations. Another type of cross sectional study is survey result, which has been taken by me. A major strength of survey research is its wide scope. Detail information can be obtained from a sample of large population .Besides; it is economical as more information can be collected per unit of cost. In addition, it is obvious that a sample survey needs less time than a census inquiry. Descriptive research includes survey and fact finding enquiries of different kinds of the major purpose. Descriptive research is description of the state of affairs, as it exists at present. The main characteristic of this method is that the researcher has no control over the variables; he can only report what has happened or what is happening. The methods of research utilized in descriptive research are survey methods of all kinds including comparative and co relational methods. The reason for using such

33

needs to be flexile in its approach, but a descriptive study in contrast tends to be rigid and its approach cannot be changed ever now and then. TYPE OF DATA COLLECTED There are two types of data used. They are primary and secondary data. Primary data is defined as data that is collected from original sources for a specific purpose. Secondary data is data collected from indirect sources. (Source: Research Methodology, By C. R. Kothari) PRIMARY SOURCES These include the survey or questionnaire method, telephonic interview as well as the personal interview methods of data collection. SECONDARY SOURCES These include books, the internet, company brochures, product brochures, the company website, competitor’s websites etc, newspaper articles etc.

34

SAMPLING
Sampling refers to the method of selecting a sample from a given universe with a view to draw conclusions about that universe. A sample is a representative of the universe selected for study. SAMPLE SIZE The sample size for the survey conducted was 240 respondents. This sample size was taken on 95% confidence level and 6 significant level. SAMPLING TECHNIQUE Random sampling technique was used in the survey conducted

Questionnaires:
This is the most popular tool for the data collection. A questionnaire contains question that the researcher wishes to ask his respondents which is always guided by the objective of the survey.

Pie chart:
This is very useful diagram to represent data , which are divided into a number of categories. This diagram consists of a circle of divided into a number of sectors, which are proportional to the values they represent. The total value is represented by the full create. The diagram bar chart can make comparison among the various components or between a part and a whole of data.

Bar chart:

35

This is another way of representing data graphically. As the name implies, it consist of a number of whispered bar, which originate from a common base line and are equal widths. The lengths of the bards are proportional to the value they represent.

Preparation of report:
The report was based on the analysis and presented with the findings and suggestions. The sample of the questionnaires is attached with the report itself.

36

“Literature review” MARKETING OF ONIDA

37

MARKETING OF ONIDA
Brand Update : Onida
Onida has ventured into mobile phones. The brand has launched the phones in the price range of Rs 1500-8000. The brand hopes to cash in on the equity of the brand in the white goods segment. Onida was facing the issue of rivalry between the brothers over the control of the business. At one point of time, there were reports of the brothers putting the brand on the block .Now it is said that they have reached a consensus and the focus is again on the business. It is in this scenario, that the brand has extended to mobile phones.The power of Onida brand was visible during the recent spat between the brothers. Despite the management issues, the brand was able to hold on to double digits market share in the CTV segment. During the last year, the brand was virtually silent in terms of promotions and had messed up the positioning by constantly changing the slogans. Onida mobiles also carry the same positioning of the parent brands . The slogan used in the print ad is " Call Your Other Side ". The brand calls itself " Wickedly tempting" which will bring the spunkier side in you. I feel that the brand has jumped into this category too early. The brand although enjoys a good equity has not been nurtured in the past couple of years. So without nurturing the core brand, any extension is going to have a negative impact . On the other side, the extension can also bring freshness to the core brand . Onida may be hoping that the extension can rejuvenate the brand. But the issue is that mobile phone market is a highly competitive market with Nokia ruling the game. Almost all consumer durable majors have their line of mobile phones

38

and almost all celebrities are booked by different brands. The latest being Samsung endorsed by Aamir Khan. Hence to get eyeballs in this category requires hell lot of investment. And I bet Onida may have to compromise on other categories if they want to seriously enter the mobile segment. The brand may be hoping that the noise made in this segment will also have an effect in other categories also. Second is the huge investment needed in product development. The models in this segment has a shorter product lifecycle and Indian consumers are now learning the habit of changing mobiles every year. Again more money to be spent on R&D and less money on brand building .

The ONIDA Devil'Returns
The caselet elaborates on the efforts taken by Mirc Electronics to promote its television brand Onida. The caselet describes how the brand mascot - ‘The Onida Devil', helped Mirc Electronics gain brand awareness for its televisions in the early years. The caselet then examines the marketing communications strategies of the company in the late 1990s after the company abandoned its popular brand mascot. Finally, the caselet provides details of how the company again re-launched ‘The Onida Devil'with the objective to further break away from the clutter and build up brand recall for its television brand. Issues: » Brand mascot and its role in brand management » Use of advertising appeals in marketing communications campaigns » Promotion of consumer electronics brands in India » Importance of focus group study in marketing communications Introduction

39

Onida, a leading television brand, is still well known for its brand mascot ‘The Onida Devil'and its punch line “Nieghbour's Envy Owner's Pride”. In the 1980s when owning a television set was considered a luxury, Onida launched its advertising campaign on the platform of envy, to promote its television range. A green-horned devil with a long pointed tail was the spokesperson in all its ad campaigns till the 1990s. The ‘Devil'helped Onida gain substantial market share and brand recall among the customers and become one of the top three television brands in the country. In 1998, Mirc Electronics (the owner of Onida brand) decided to abandon the “Onida Devil” in its communication campaigns as the brand mascot no longer appealed to the Indian consumer. Questions for Discussion: 1. Over the years, Onida has used different kinds of appeals in its advertising campaigns, without consistent success of this strategy. In the new ad campaign with its old brand mascot, the company decided to use its original theme of ‘Envy'again, though in a more subtle manner. What is the rationale behind the company constantly shifting its advertising appeal over the years? 2. The Onida brand was strongly associated with its brand mascot the Devil, and Mirc Electronics made efforts to change this perception among the consumers, by abandoning the brand mascot in 1998. But, the company had to bring back the Devil in 2004. Evaluate the pros and cons that a brand like Onida faces, when it is linked to the brand mascot and not the brand itself?

ONIDA 'Candy'-Getting the Marketing Mix Wrong
Onida's market share in the Color Television (CTV) market went up from 9.5% in 199798 to 11.7% in 1999. (In 2000, Onida's market share was 13%). However, almost 45% of its sales had came from the 21-inch segment. Onida therefore decided to increase its market share across all categories.

40

Onida, which was better known as a '21-inch television company,' wanted to rejuvenate the brand by entering the 14 inch and 20 inch segments. In May 1999, Onida came out with a unique product, a 14 inch CTV set nicknamed Candy. Candy came in four colors-Berry Blue, Mint Green, Lemon Yellow and Cherry Red— and was priced at Rs 9,990. Soon after the launch in Mumbai, G Sundar (Sundar), executive vice-president of Onida, invited 80 dealers to discuss how to make the Onida brand appealing to the youth. Onida finally decided to use the cricket World Cup as a vehicle to rejuvenate the brand. Sundar banked on the World Cup to push Onida 'Candy', the 'cute, funky, nifty, little product.' Since Candy came with a free cordless headphone, one could listen to the cricket commentary on TV without disturbing anyone at home. It seemed to be an ideal product launch before the World Cup. With this strategy in mind, Onida started marketing Candy more aggressively than its other products. Hoardings were put up at prime locations in Mumbai. Just before the World Cup, Candy was launched nationally Excerpts Positioning Conundrum In the late 1990s, Onida was eyeing the replacement market in which black TVs were exchanged for colour TVs. This segment accounted for 25% of the CTV market. Onida positioned Candy to tap this market. Research carried out by Onida in 1998 revealed that 60% of TV repurchases were done by 24-to-35-year-olds Product Differentiation

41

Through Candy, Onida was planning to differentiate its product in the overcrowded CTV market. When Candy was launched in 1999, it was seen as a bold attempt to stand out in the overcrowded Indian television market, which had seen nearly ten new entrants since 1995. Japanese brands like Sony, National Panasonic and Toshiba, and Korean brands like Samsung and LG, had entered the Indian television market at the same time... Targeting Candy focused sharply on young people; it was targeting people between the ages of 12 and 25. Market research showed that this age group was looking for personalized products. As a result, Candy was configured to meet this need. For instance, Candy could be configured to different channel choices... Getting The Marketing Mix Wrong? Analysts felt that Candy would have fared better if it had paid more attention to communicating its youthful image... Will Candy Make a Comeback? Onida stepped up its advertising efforts with an outdoor campaign launched in June 2001. It also planned to add another colour to its 20-inch offering...

Gulu Mirchandani made Onida, India's pride
He was born on 12 June 1943 to Padma and Lalchand Ghemal Mirchandani. Gulu studied engineering at BITS Pilani, graduating with a degree in mechanical engineering. In 1981 along with Sonu Mirchandani (his brother) and Vijay J Mansukhani, Gulu promoted MIRC Electronics to make televisions under the Onida brand.

42

Establishing the company was a struggle: Rajiv Gandhi had opened up imports so that we could all watch the 1982 Asian Games, and Jumbo's Manu Chabbria seized the opportunity to flood India with Sony exports from Dubai. It was not until the mid 1980s that the fledgling company's fortunes could turn. The catalyst was a controversial advertising campaign with the tagline, 'Neighbor's Envy, Owner's Pride'. The face of the devil became the face of the company and sales boomed. The rest as they say is history. Onida gained ground not only over Indian players such as Videocon and BPL but equally won turf battles against the global giants such as Sony. The next turning point was a family separation in the mid 1990s, with Sonu taking over the Delhi factory, and Gulu the Mumbai operations and the Onida brand. There was a hiatus for a year or so, but once the reorganization was over, Onida hit the streets running. New products tumbled off the designers' drawing boards, ("We have very strong R&D of our own. We're constantly increasing investment here. We started out with five R&D people. We have 75 today") not just in consumer electronics but also consumer durables, including washing machines with fuzzy logic.

43

BRAND ANALYSIS

44

BRAND ANALYSIS
WHY ONIDA AS A BRAND IS AILING? Internal management Problems: One of the main reasons for this is the fight between the brothers : Gulu and Sonu Mirchandani and their brother -in- law Vijay Mansukhani over the control of the Onida group. The fight has severely eroded the share of the brand and even the marketing of Onida. Onida was staging a recovery after the successful relaunch of the brand and the return of the Devil. But the family feud has made things difficult for the brand. Frequent change in Advertising: What is interesting about Onida is the branding. The creative duty of the brand has partly moved from one marketing agency to another i.e. from Rediffusion to McCann Erickson. But as usual, when the agency changes, the entire brand elements changes. For Onida, the change till now unfortunately is always for the worse. When O&M took the brand from Avenues, the famous tagline “Neighbor’s Envy, Owner's Pride” and the Devil was taken off. The brand suffered for almost 10 years and has never recovered since .The change of agency from O&M to Reinfusion again changed things and Devil returned in a new avatar and a new tagline “Nothing but the truth" has now come into existence. The new arrangement is not making things better. In 2007, Onida launched a new campaign for its A/C and with a new tagline “It can change your life”. Now the new campaign for the air conditioner features a new Devil and the tagline has again changed to "Experience the desire". Onida which already is in deep trouble is moving on to further confusion with an unnecessary change in the positioning strategy. The brand has not been able to consolidate the earlier theme based on 'truth'. Even before establishing it, the brand has repositioned again. Aging customer base: The customers of Onida have grown older with times and the brand has failed to connect itself to the current generation. The “devil” in the advertisements in not helping it either.

45

The following factors have diluted Onida’s Brand Equity: Brand amnesia: For old brands, as for old people, memory becomes an increasing issue. When a brand forgets what it is supposed to stand for, it runs into trouble. The most obvious case of brand amnesia occurs when a venerable, long-standing brand tries to create a radical new identity, such as when Onida tried to replace its original tagline with new one. The results were disastrous. Brand fatigue: Some companies get bored with their own brands. This can happen to products which have been on the shelves for many years, collecting dust. When brand fatigue sets in creativity suffers, and so do a sale which was and is the case with Onida. Brand paranoia: This is the opposite of brand ego and is most likely to occur when a brand faces increased competition. Typical symptoms include: a tendency to file lawsuits against rival companies, a willingness to reinvent the brand every six months, and a longing to imitate competitors. COMPARISON WITH COMPETITORS Market characteristics • • • • • The consumer goods market in India is of USD 4.87 Billion. Around 45 companies cater to this market. Onida is having a very small share of this market. In the Indian market space, Brand loyalty is giving way to “value-for-price” contest. There is an intense competition on price. The companies are Companies focusing on product differentiation, value added offerings and exchange offers. The MNCs like LG, Sony, Samsung, Phillips and Videocon command a high market share. These brands score high on following factors:

46

Product Line: These companies (LG, Sony, Samsung, Phillips and Videocon) have a wider product range compared to Onida to target customers from all segment. Positioning: Their Image of a multinational company in the minds of consumer helped them to grab market share instantly. It gave a perception that these companies have better technology. Videocon on the other hand leveraged its MNC image by it tagline of “Indian MNC”. Advertisements: LG has Abhishek Bachhan, Samsung Has Aamir Khan, Videocon had Amithabh Bachhan and now Sharukh Khan, and All these players have used celebrity to a good effect to endorse their brands. On the other hand Onida is stuck with its old “Devil” which isn’t helping. Visibility: The companies are associated with events and sponsorships. Like LG and Videocon are associated with cricket. This has resulted in better brand visibility. STRATEGIES TO REVITALIZE BRAND ONIDA In order to revamp its position and brand value in the market Onida should use the following strategies: Better positioning: Onida should stick with a uniform positioning strategy rather than changing it with time as they did. Celebrity Endorsement: The Company should go for a better adverting. The company can rope in a celebrity to endorse its brand. This way the brand can be benefited from celebrities brand equity. We suggest rope in Saurav Ganguly. Ganguly’s image of a fighter and a class player will help Onida’s brand image. Association with events: The Company has lost its place in the minds of customers. Also, the loyal customers of Onida have grown older. To regain old customers and to regain visibility, Association with events can help. Onida’s problem of low visibility will be solved with its sponsorship of event like rock shows, games, marathons etc.

47

Line Extension: The Company should go for line extension in value segment so as to target more customers in the lower segment. They should introduce more variants in 14”, 20” and 21” segment. These products will target the young and first time buyers. These buyers will have an emotional attachment with the brand and as they graduate to the high end segment, Onida can target them with its high end products.

Washing Machines with ONIDA
As we know, modern life is changing rapidly and only change is imminent and unavoidable in this universe; and this human kind in the changed form of a consumer is not a king now but he has become an emperor. Now a days, marketing is the core concept of any organization and this marketing activity turns around the consumer. So present era can be termed as era of consumerism. Said Charles dickens of French Revolution in A Tale of Two Cities, written 100 years ago: It was the best of time; It was the worst of time. Today there are many blessings: extremely high productivity because of mechanization and automation, the promise of computer and internet, the rapid growth of global trade, and the end of the cold war. Human kind today has capacity to end the hunger in the world and to cure many epidemic diseases. Here in its full capacity the industrial innovators have done many more innovations to satisfy the needs of the target segment and to meet their lifestyle necessities and washing machine is one of those innovations. Now, life is quite busy, daily household works need some convenience, and washing machine provides this facility. Washing machine as a consumer durable item was considered to be luxurious home appliance in India 10 or 15 years ago; but after the invent of new economic policy ,the scenario has been improved by many folds. Now it has become a necessary goods in nuclear or service class family and the same thing is happening in middle-class income group of India, which is now 300 million in number, approximately equal to the population of U.S.A . So there is a great scope for this item in the changing way of consumer behaviour in India and realizing this fact MIRC ELECTRONICS LTD.; a 48

premier player in colour and black & white television has jumped into the market of washing machine. But we have already said that the scenario is quite different now and there is a tough competition in this segment. Washing machine sales volume in India has crossed 1 million mark 1 year ago but it is also a point to be noted there are so many established companies engaged in this market. Therefore, it has to compete with them. For this purpose, company is taking many efforts as the part of their marketing strategy to promote its product.

ONIDA – When the devil beckons, ‘nothing but the truth’ prevails
Interesting brand icons and mascots are well known for creating and sustaining brand awareness where none existed. The right use of brand icons make sure that people relate with the brand even when much is not said. A few years back, Onida was synonymous with the devil that represented the electronics company’s public image. The consumers loved the devil and identified Onida with the devil. However, Onida stopped using the devil as its icon. And, after sales and brand identity suffered, the company thought of re-introducing the devil in 2004. Elaborated Vivek Sharma, VP-Marketing, Sales and Service, MIRC Electronics (Onida), “The devil was a memorable mascot for Onida. Reintroducing the devil in 2004 was a wise decision. We observed that a lot of misbranding was the result of not using the devil as Onida’s face for eight years.” He added, “As soon as we reintroduced the devil in 2004, our sales shot up. People again started recognising the uniqueness of Onida’s brand positioning in the market.” Though Onida’s recent ad campaign has model and actor Ashish Chaudhry playing the devil, Sharma said that Onida’s devil was different from what the previous devils were symbolic of. “The personality of the devil has changed. While the devil in 2004 was cold 49

and distant, our new devil is warm and likeable. We wanted the devil to connect with the consumers by talking to them. Our new ad campaign makes sure that the devil talks to our consumers and is friendly and young but impish at the same time,” Sharma explained. The new TVC, directed by Shamin Desai, is also an introduction to Onida’s unified brand message – “Nothing but the truth”. The TVC shows two friends who let their friend’s buying habits influence their choice of products. The devil gradually makes them realise that they have to think what’s best for them and not be influenced by others’ choices. The creative group behind this new TVC is Rahul Jauhari, Group Creative Director, Rediffusion DY&R, KS Chakravarthy, National Creative Director, Rediffusion DY&R, besides Desai. Sharma further said, “Our new TVC attacks the mumbo-jumbo that advertising represents today. We wanted to tell consumers to think before buying. Just because your friend buys a particular brand of TV does not mean that you too have to buy the same brand.” K S Chakravarthy said, “Onida’s recent ad campaign is not just limited to TVCs, but print and outdoor as well. We are planning to promote the new brand message, “Nothing but the truth” with a 360-degree marketing strategy. As Onida’s brand value is that of honesty and transparency, we will tie up with TV channels, press, outdoor, and POS to connect the brand with anything to do with ‘truth’.”

50

DATA ANALYSIS AND INTERPRETATION

51

DATA ANALYSIS AND INTERPRETATION
Complete results (240 respondent’s total): 1. "I feel brands should engage with their customers by ONIDA" Strongly Agree 97 40.42% Agree 118 49.17% Disagree 19 7.92% Strongly Disagree 6 2.50%

2. "I have a much better impression ONIDA customer service" Strongly Agree 87 36.25% Agree 107 44.58% Disagree 41 17.08% Strongly Disagree 5 2.08%

3. "I am interested in receiving special offers and coupons from ONIDA" Strongly Agree 36 15.00% Agree 96 40.00% Disagree 70 29.17% Strongly Disagree 38 15.83%

4. "If a company uses new technology , it would affect my overall perception of their brand" Strongly Agree Agree Disagree Strongly Disagree 121 91 27 1 50.42% 37.92% 11.25% 0.42%

5. "I would recommend a company's product or service based on their quality" Strongly Agree 40 16.67% Agree 104 43.33%

52

Disagree Strongly Disagree

83 13

34.58% 5.42%

6. "I would be more willing to purchase a product from a company " Strongly Agree 54 22.50% Agree 135 56.25% Disagree 45 18.75% Strongly Disagree 6 2.50%

7. How many products of ONIDA do you have? One 29 Two 34 Three 101 More 46 None 30

12.08% 14.17% 42.08% 19.17% 12.50%

8. How you know about ONIDA? News paper 19 Radio 65 TV ads 43 Friends 65 Sales man or distributor 48

7.92% 27.08% 17.92% 27.08% 20.00%

9. What is your age range? <18 19-24 25-34 35-44 45-54 55-64 65+

5 26 61 99 38 9 2

2.08% 10.83% 25.42% 41.25% 15.83% 3.75% 0.83%

10. What is your gender? 53

Female Male

95 145

39.58% 60.42%

54

GRAPHICAL INTERPRETATION

Q1 I feel brands should engage with their customers by ONIDA

19

6 97

118

Strongly Agree

Agree

Disagree

Strongly Disagree

55

Q2. I have a much better impression of ONIDA customer service"

5 41 87

107

Strongly Agree

Agree

Disagree

Strongly Disagree

56

Q3. I am interested in receiving special offers and coupons from ONIDA

100 90 80 70 60 50 40 30 20 10 0 Strongly Agree Agree Disagree Strongly Disagree

57

Q4. If a company uses new technology , it would affect my overall perception of their brand

140 120 100 80 60 40 20 0 Strongly Agree Agree Disagree Strongly Disagree

58

Q5. I would recommend a company's product or service based on their quality

120 104 100 83 80 60 40 20 0 16.67% Strongly Agree 43.33% Agree 34.58% Disagree 40

13 5.42% Strongly Disagree

59

Q6. I would be more willing to purchase a product from a company

140 120 100 80 60 40 20 0 Strongly Agree

135

56.25% 22.50% 54 18.75% 45

2.50% 6 Agree Disagree Strongly Disagree

60

Q7. How many products of ONIDA do you have?

120 100 80 60 40 20 0 12.08% One 14.17% Two 42.08% Three 19.17% More 12.50% None 29 34 101

46 30

61

Q8. How you know about ONIDA?

19 48 News paper Radio 65 TV ads Friends 65 43 Sales man or distributor

62

Q 9. What is your age range?

120 100 80 60 40 20 0 <18 19-24 25-34 35-44 45-54 55-64 65+

63

Q10. What is your gender?

95, 40%

145, 60%

Female

Male

64

FINDINGS AND CONCLUSION
1. 50 % people feel brands should engage with their customers by ONIDA 2. More than half of people interested in receiving special offers and coupons from ONIDA 3. If a company uses new technology, it would affect overall perception of most of the people 4. Most of the people suggest a brand tow other on the basis of quality 5. Nearly two third people willing to purchase the products from company 6. Most of the people have three ONIDA product in their house 7. Advertisement by television and radio and recommendation by friends are the main sources for knowledge about brands 8. nearly three fourth people have a much better impression of ONIDA customer service

65

RECOMMENDATION AND SUGGESTION
1. Company should announce some special offers to attract more customer 2. Company should keep their researches continue to provide new technology to customers. 3. Company should enhance the promotions on television and radio 4. Company should improve quality continuously to become a recommended brand by friends and peoples 5. Customer service should have more helpful for people 6. Brand promotion should be very impressive and attractive to bring the customer to ONIDA showrooms.

66

BIBLIOGRAPHY
Books
Marketing management: analysis, planning, implementation, and control by Philip Kotler - Business & Economics - 1988 Marketing Management by Philip Kotler, Kevin Keller - Business & Economics 2008 Research methodology: a step-by-step guide for beginners by Ranjit Kumar - Social Science - 2005 Research methodology by Douglas K. Detterman - Psychology - 1985

Web sources

1. www.managementparadise.com 2. http://www.onida.com

67