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Wednesday, July 27, 2011

Case Study

Orgnaization:  Mirc Electronics
                        Industry       :  Computers & Electronics
                      Product        :  Color TV
                      Brand           :  Onida

Introduction

 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.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….

 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.

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

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..

Issue

Candy, the 14-inch colour TV from Mirc Electronics, did not perform well in the Indian market.Although Candy did enjoy initial success when it was launched in May 1999, its monthly national sales declined to 3,500 units by mid 2001.
                      

Questions:

-         What was the reason of decline in sales of  Onida Color TV model “ Candy” in 2001.

-    How can Onida make come back.