A

STUDY
ON
BRAND
PROMOTION
IN
ONIDA

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EXECUTIVE SUMMERY

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 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.

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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.

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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.

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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

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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.

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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

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  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.

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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.

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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

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 : 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)

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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.

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OBJECTIVE

OF THE

STUDY

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 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.

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PURPOSE AND SCOPE

OF

THE STUDY

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 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.

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 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.

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BRAND PROMOTION

IN

ONIDA

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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.

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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

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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.

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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” de-
interlacing 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.

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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.

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 RESEARCH
METHODOLOGY

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 RESEARCH METHODOLOGY

Research methodology is considered as the nerve of the project. Without a proper well-
organized 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.

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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:

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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 1997-
98 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 re-
launch 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 121 50.42%
Agree 91 37.92%
Disagree 27 11.25%
Strongly Disagree 1 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 83 34.58%
Strongly Disagree 13 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 12.08%
Two 34 14.17%
Three 101 42.08%
More 46 19.17%
None 30 12.50%

8. How you know about ONIDA?

News paper 19 7.92%
Radio 65 27.08%
TV ads 43 17.92%
Friends 65 27.08%
Sales man or distributor 48 20.00%

9. What is your age range?

<18 5 2.08%
19-24 26 10.83%
25-34 61 25.42%
35-44 99 41.25%
45-54 38 15.83%
55-64 9 3.75%
65+ 2 0.83%

10. What is your gender?

53
Female 95 39.58%
Male 145 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 Disagree Strongly
Agree 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
40

20 13
16.67% 43.33% 34.58% 5.42%
0
Strongly Agree Disagree Strongly
Agree Disagree

59
Q6. I would be more willing to purchase a product from a company

140 135

120

100
56.25%

80
22.50%
60 54 18.75%
45
40

20 2.50%
6
0
Strongly Agree Disagree Strongly
Agree Disagree

60
Q7. How many products of ONIDA do you have?

120
101
100

80

60
46
40 34
29 30

20
12.08% 14.17% 42.08% 19.17% 12.50%
0
One Two Three More None

61
Q8. How you know about ONIDA?

19
48
News paper

Radio
65
TV ads

Friends

65 Sales man or
distributor

43

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

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