1. ONIDA-Brand Analysis and Revival Strategies
Introduction
Onida is one of the most popular Indian-grown electronics brand. The origin of the Onida is
trademarked to Monica Electronics, a company which was incorporated in 1975 and which
was owned by the Mirchandani family and which was acquired in 1981 by Mirc Electronics.
In 1982, Gulu Mirchandani and his brother in law Vijay Mansukhani along with Sonu
Mirchandani started assembling television sets at their factory in Andheri, Mumbai. Since
then, Onida has evolved into a multi-product company in the consumer durables and
appliances sector. After few years, Onida also achieved a 100% growth in ACs and
microwave ovens and a 40% growth in washing machines.
In the 1990, the shipments to the Gulf contribute almost 65 per cent of Onida's export
revenue, while shipments to the fast growing East African market (Uganda, Tanzania, Kenya
and Ethiopia) and the SAARC countries accounted for 16 per cent of export revenues. In
addition to the Gulf countries Onida has a presence in Russia, Ukraine and neighbouring CIS
countries. Apart from Television Exports to Russia, Onida also exports DVD Players and High
end LCD Televisions. The wide range of products which Onida offers include:
LCD / LED TVs/ Monitors
Plasma TVs
Televisions
Air Conditioners
Washing machines
2. Microwave Ovens
Presentation Products
Inverters
Mobile phones
LCD Monitors
Onida is a brand best remembered for its unique mascot—the green devil with horns, long
nails and spiky tail slithering across television screens. 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. The tag line, “Neighbour‘s Envy, Owner‘s Pride”, was as
catchy as the mascot.
Failure
However over a decade now, the brand is suffering. In 1998, Onida withdrew the Devil
mascot, along with their famous tagline and ever since, they never found a powerful
repositioning. After 6 years of drifting around, in 2004, Onida brought back the Devil with a
changes modern avatar. But the comeback was damp squib. The brand suffered heavily due
to ownership issues within the company. There was no brand promotion or new product
launches worth talking about since 2004. If at all there were launches, the promotions were
not sufficient enough.
3. Reasons for Brand Ailment
1. Internal Management Problem
In 1990, the Onida trademark became the subject of a legal battle between the
Mirchandani brothers. The fight between the brothers: Gulu and Sonu Mirchandani
and their brother -in-law Vijay Mansukhani over the control of the Onida group,
destroyed the brand image of ONIDA. Gulu bought out Sonu‘s holding in their
company Mirc Electronic and Sonu started launching a range of electronic products
under the Onida brand and through a company – Onida International in which Sonu
has an 80% stake. But Sonu entered into a joint venture with a Japanese company to
market their products under the Onida trademarks. Onida tried to stage a recovery
after the successful re-launch of the brand and the return of the Devil. But the family
feud made things difficult for the brand all the time.
2. Changing Advertising and Taglines
In the face of India's changing consumer tastes and their financial capabilities, Onida
has decided to say goodbye to their good old "Devil" mascot or their so called brand
ambassador. With the stiff competition from international brands like LG and
Samsung, Onida decided to rebuild its brand and to build a complete new brand
mascot to grab the attention of India's new consumers. But as usual, when the
agency changed, the entire brand elements got changed. Later the devil was even
replaced by a married couple- Siddharth and Ritu, but even then the brand could not
survive. With this new brand campaign, the company would address the youth and
establish it as more than a TV brand. The brand replaced the iconic devil with a new-
age couple as the protagonists. Onida has now done repositioning on the basis of
"Customer Oriented Design". But in comparison with the classic old tagline, the new
campaign falls short of expectations.
4. Changing Icons of Onida:
3. Aging Customers Base: Brand Amnesia
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 is not helping them
either. ONIDA has reached a stage of Brand amnesia in which when a venerable, long-
standing brand tries to create a radical new identity, such as when Onida tried to replace its
5. original tagline with new one, the brand forgets what it is supposed to stand for and it runs
into trouble.
4. No After Sales Service Provided
Onida TV‘s got regular problems of complaints from different customers, but there was no
one to listen to customer‘s complaints and which had created a great dissatisfaction
amongst customers. The regular feedback of poor after sales service posted by customers
on social media, have ultimately resulted in reducing the brand sales from the market.
CASE ANALYSIS
SWOT ANALYSIS
Strengths
High brand recall
Premium pricing and price value strategy
Good distribution facility
High quality LCD TV’s
Strong in-shop training and demonstrations
Weaknesses
Less promotion
Volatility in positioning
Weak after sales service
Not much focus on R&D
Opportunities
Growing middle class
Replacement market CRT to flat screen, LCD
Growing semi-urban and rural markets
Easier financial assistance frombanks
Increase in entertainment needs
Threats
Increased competition from MNC’s
High bargaining power of speciality stores
Increase in salary of technicians in industry
Obsolescence of technology esp. in LCD
Converting weakness to strengths:
The company should stick with an ad agency and proper promotion and advertising
strategies need to be set up. Mascot and taglines to be finalized with respect to the
trends in the market.
After sales services need to be improves. Proper service centres to be set up.
More focus required on R&D.
Converting Threats to opportunities
6. Market trends should be kept in mind while strategizing our own.
Salaries and product pricing should be such that the profits are maximum
Keep products up to date with the new technologies
Converting opportunities to strengths
Start with focus on metros and middle class
Launch new products with the new technologies in trend
Launch products keeping all the economic classes in mind
BCG Matrix (For the TV product line)
Market Share
High Low
Stars
21” Flat TV
Question Mark
29” Flat TV
Cash Cows
21” Conventional TV
29” Conventional TV
Dogs
14” Conventional TV
20” Conventional TV
21” Flat TV are the Stars of the company hence attempts should be made to hold the market
share in order to get maximum sales running else the 21” Flat TV will become Cash cows.
High
Market
Growth
Low
7. The 21” and 29” Conventional TV are the stars of yesterday, of the 1990’s and now they are
Cash cows. The 14” and 20” conventional TV are the Dogs of the company and do not have
much potential to bring in cash. Number of 14” and 20” Conventional TV in the company
should be minimized. The 29” Flat TV is in good demand in the market but the market share
of the company in less for this product. Investments should be done on 29” Flat TV as they
have good potential to bring in cash.
Ansoff Matrix
Product
Existing New
Market Penetration
9% share in the current market for TV’s
5% share in the current market for Washing
machines
3% share in the current market for AC’s
Product Development
LED TVs with I-Care Technology
Pre cool range of Air Conditioners
Market Development
Different distribution
Different target
Unique advertisement
Proper segmentation
Diversification
DVD Players
Music Systems
Headphones and earphones
Repositioning Strategy
Segmentation:
On the basis of type of buying:
The upgraders: The main reason behind the upgrade is the boom of satellite and
cable and increasing coverage of major sports events.
Existing
Market
New
8. The first time buyers: This segment includes nuclear families or families with no kids
or bachelors living alone for job or studies.
Multiple set buyers: Main consumers are joint families with need to own personnel
TV sets
Replacement purchases: With increasing disposable incomes and introduction of
new models, the replacement category has surged over the years.
On the basis of type of income:
High income: 10000 to 15000 per month
Medium income: 15000 to 30000 per month
Low income: >30000 per month
Targeting:
On the basis of type of buying:
The upgraders: This segment of buyers have upgraded from Black and white TV to
coloured and Conventional TV to flat screen LCD and LED TV’s
The first time buyers: In this case the key product differentiators are shape, colour
of the TV cabinet, speaker output and other accessories. Brand loyalty is not very
high but the focus is towards the brand offering the latest consumer friendly
technology
Multiple set buyers: Price is the most important purchasing factor combined with
consumer friendly technology.
Replacement purchases: The new emerging technologies such as 3D, HDMI, Blue ray
have led users to replace old TV sets with new ones.
On the basis of type of income:
High income: We can focus on people with high income by launching costly products
with enhanced features in the market though it will have tough competition from
other companies. But still to give competition it can launch its new products in the
market for elite class.
9. Medium income: This section of people can be captured to a great extent as they
want service with reasonable price and a decent brand name. So by adding on new
features in its product and removing the unwanted ones and by good marketing
campaign we can capture this section of market.
Low income: Onida can also focus on people with low income by launching a low
priced TV with decent feature.
Positioning
The market potential is huge with growing consumerism and also digitisation of television
and set top boxes television and other electronic products have become more of a basic
need even to the lowest strata of the society. It can later after successfully tapping into this
segment think of further penetration into higher sections. Onida can also concentrate on air
conditioners and washing machines apart from LED televisions, Onida has been coming with
Android television but it should concentrate more on providing a basic LED television set
with flat screen higher quality picture and sharper image superior sound because most
people still appreciate the basic television with contemporary looks sleek design at an
affordable price hence enhancing their value for money. It can even look at providing a
greater choice in terms of screen size by coming out with 14”, 21” and other such varieties.
Onida TV should be positioned as a medium for entertainment providing advanced
technology at affordable prices.
Marketing Mix-The 4 P’s
Price
The pricing doesn‘t need to be altered much. They should keep the Landed Retail Price (LRP)
of TVs the same but give more margins to dealers. The price for 14ʺ and 21ʺ should be kept
600 – 1,500 more than Videocon and BPL, so as to maintain its superior image. Videocon is
generally priced lowest of all. In the LCD segment, the price should be 15-20% less than Sony
and Samsung. This will help in grabbing the aspiring customers who would not like to spend
much in their TV purchase.
10. Product
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. LCD market is the fastest growing
segment and this is where Onida should focus immediately. These products will fetch higher
realization than the low-priced TVs. They should launch high-definition, LED TVs. They
should continue the USB supported TV which will be a good differentiator to project its
technological superiority and user-friendly features. e.g. Ultra slimTV with USB connectivity.
Promotion
Promotion can be done by organizing road shows in public places and even the malls
which are on the rise.
They can have games interactive events contests and involve the customers as well
as inform them.
Merchandising and giving them crisp and relevant information distributing free
pamphlets brochures.
They should bargain for more shelf space in speciality stores like Croma, eZone etc.
They may negotiate with discount stores like Big Bazaar for promoting Onida TV.
They should also invest more in dealer promotions.
Promotions like contests, lucky draw, exchange offers etc. will help in brand
awareness and better brand recall. This way they can capture a good part of
replacement demand.
The Company can rope in a celebrity to endorse its brand in a fresh advert. This way
the brand can be benefited from celebrities brand equity. This will also help in better
brand awareness.
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 events like
cricket matches (ICC World Cup & IPL), rock shows, other games, marathons etc LG
co-sponsored ICC World Cup and got tremendous mileage in terms of increased sales
and brand building.
11. Their decades old Devil can be portrayed to find a connection with today‘s mid-age
generation, who are their potential customers and confront with the celebrity roped
to create a series of recurring ads with a theme in them.
Place
Onida can focus on the TVs with advances technologies such as iCare Technology, LED,
Blue ray in the metro cities where a large section of the population will be willing to
spend on TV’s with latest technology irrespective of the pricing. In rural areas the 14”
and 22” conventional TV’s with low prices can be launched.
Points of parity
LED technology
Full HD display
Superior picture quality
Mega sound
Elegant design
HDMI connectivity
Points of difference
LED TV with iCare Technology which in reflection free, gives protection from UV rays
and I 100 times tougher than LCD TV
Affordable prices
Very user friendly
Direct USB connectivity
Active play LCD TV
Pre coo, range in Air conditioners where you can switch on the AC from anywhere by
sending a SMS
Brand Mantra
The decades old Devil and the tagline “Neighbours envy, owner’s pride” can be portrayed
again to find a connection with today‘s mid-age generation, who are their potential
customers. A logo that captures both the original devil horns and the modern times is
suggested
12. Conclusion
Onida due to its turbulence internal structure and trying to do too many things all this while
not having a uniform positioning nor a integrated marketing communication went from an
admired Indian brand to virtually a brand in oblivion. It committed basic and glaring
marketing blunders on the way. Brands like Samsung LG and even to an extent Videocon
went ahead in the race.
Considering all these details all is still not lost for Onida if it considers to put its best foot
forward with reviving its brand the essence of brand revival should be to look at itself work
on its products first work on its brand internalize it work on the R&D to present to its
customers with contemporary stylish and relevant products. It needs to go back to the
drawing board and chalk out an aggressive marketing campaign after proper market
research and finding truths about the market its own product and about the competition at
large, apply proper segmentation and try and have a uniform positioning and not get mixed
up by trying out too many things.