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Onida
Assignment for Strategic Marketing
Submitted by:
Sam Alex - 85
Vikas Nigam - 115
Strategic Analysis of Onida
ONIDA An Introduction
It all began with just a vision. In the year of 1981, Mr. GL Mirchandani and Mr. Vijay
Mansukhani started a company called Onida with just a goal of manufacturing television sets
and going beyond convention. By the end of that year, they started assembling television sets
at their factory in Andheri, Mumbai. With the passage of time, superior products and the
Combination of a distinctive voice, a cutting-edge advertising strategy, and purposeful
Marketing ensured that Onida became a household name.
Onida achieved being a household name through impressive advertisements (People still
remember the devil – Owners pride and neighbours envy) and innovative products (Candy).
After that period, due to certain internal conflicts, Onida started losing its focus. They
introduced various products, changed their promotions, their positioning was blur and the
service and quality eroded. Onida is currently into:
Televisions,
DVD players,
Microwaves,
Washing Machines,
Mobiles,
Air Conditioners and
Projectors.
Our attempt is to analyse the position of Onida using various matrices and recommend what
needs to be done to achieve its past glory.
Analysis of Onida
To analyse Onida with the help of various matrices, we understood how difficult it is when
we didn’t notice the products in Forum, E- store, Croma, etc. We called Just Dial to get the
list of their dealers near electronic city and the closest one according to Just dial was
somewhere deep in some lane in Koramangala.
There was no way we could find the place and we had to call the owner twice to get to the
place, upon reaching there, we told him we are interested in buying Onida TV and he gave us
a blank look and asked us - When you have Videocon and other brands why do you want to
buy ONIDA. In the entire range of TVs, there was just one Onida TV. Later we told him that
we were doing an analysis on Onida and he was helpful. We also struck the GOLD POT as
the manager of Onida - Mr. Ravi Kiran, incharge of distribution in Bangalore was sitting
right there.
Please find below the information we got (For Bangalore), which we classified into Internal
and External factor environment:
1. They make up for their low promotion and advertisement through strong Secondary driven sales.
Secondary driven sales is where the sales is pushed by the representatives of the respective
companies. For Onida, the representative meets the dealer around 2 – 3 times a month whereas
for other brands like Sony, Videocon, L.G. the visits are just around once a month.
2. Onida provides strong ISD - In Shop Demonstration Training to the staff at dealer’s location.
3. Strong tie up with Chain counters like Pai and co. where they greatly benefit.
4. Dealers are motivated by offering domestic and International trips (FTA - Foreign Tourist
Scheme) every years if they achieve their targets. Domestic trips are normally conducted in June
and International trips in November/ December.
5. DVD player is their worst product as they have a lot of complaints and there is no proper service
for back up, hence dealers normally don’t sell DVD players or give a new one in case of
complaints.
6. LCD TV’s are the best so far with high quality and no complaints so far. Noramlly the dealer
discourages people from buying ordinary TV of Onida and encourage them to buy Onida LCD
TV.
7. Onida commands a premium price for their normal TV’s. For the same product, Onida charges
more than Rs. 1,200/- compared to Videcon.
8. There is fault in positioning as they consider themselves premium in TV segment, Middle class
positioning for Washing machines and other appliances and they are the cheapest in the Mobile
segment ( Same features compared to Micromax and Karbonn – Onida Rs. 3,000, Micromax: Rs
3,500 and Karbonn: more than Rs. 4,000)
9. Onida sells more than 5,000 DVD players per month and they are very proud of it but this is one
major factor which would bring about a negative connect with the dealers and customers. The
distributor took us to the store room and showed us the DVD players which were returned by the
customers.
10. In the Microwave segment, LG is #1 with sales of more than 1,500 per month. Onida and
Samsung is at #2 with around sales of 1,000 units per month.
11. In the LCD segment, Onida is at #5 (1. Sony, 2. Samsung, 3. LG, 4. Panasonic) with sales of
around 1000 per month.
12. In the washing machine segment, Onida is at # 5 after LG, Whirlpool, Samsung and Godrej.
Onida sells around 1,500 units per month.
TOWS
good
BCG Matrix
Dog
Television
Considering the position of Onida Televisions in the question mark zone Onida should either
look to build up on their current position or divest their business. But since they are into
LCDs and LEDs which are doing well they should go for building up their current position.
For this they should go for:
1. Horizontal integration
2. Product innovation
3. Invest in R&D facilities
4. Improve their presence in the rural market
IE MATRIX
The position of Onida televisions can be easily plotted in the IE Matrix as per the Now, according to
the Internal-External Matrix Onida Televisions business is positioned in the Grow and Build category.
Thus, intensive and aggressive tactical strategies are recommended. The strategies should focus on
market penetration, market development, and product development. From the operational perspective,
a backward integration, forward integration, and horizontal integration should also be considered.
SPACE MATRIX
Conservative 6 Aggressive
1
-6 -1 1 6
Defensive -6 Competitive
Now, the growth of television market in India is very high but growth for Onida is low. Thus,
the Onida Television comes in the first Quadrant in the Grand Strategy Matrix. From this
following can be the possible strategies for Onida Televisions to Move ahead:
1. Market development
2. Market penetration
3. Product development
4. Horizontal integration
SPACE needs explanation, Grand Strategy matrix is not defined properly in the report
QSPM
Thus, from the QSPM analysis we can say that the company should go for the aggressive
strategy.
1. The company should be aggressive and they should focus on its core products like
LCD TV, air conditioners and mobile where the market growth is high and they have
an average market share. (except in Television segment, where its higher)
2. They should create a proper clear positioning strategy differentiating each segment.
E.g LCD TVs are not as expensive compared to Samsung, LG, Videocon, etc but in
the colour TV’s it is much more expensive and is considered as a premium product.
Even the employees are confused about the positioning strategy of Onida, so one can
imagine the confusion of the customers. There is a disconnect between Brand identity
and brand image.
3. As they have a good share of market for DVD players, they should invest in the
quality of products and service before it too late. They should either improve the
quality of DVD players or move out of this segment as this is one rotten apple which
is destroying the entire cart of apples.
4. As part of their aggressive strategy, Onida should negotiate with Speciality, category
retailers to sell more of their products. This will greatly increase visibility, sales and
lead to greater revenue.
5. Employ service employees at least at the market rate to bring about confidence in the
minds of the dealer and consumers.
In QSPM, option 1 is too elaborate, too many suggestions in one. Overall it is a good attempt
by the team
Reference??/
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