strategic perspective of mgmt- group assignment-semii

8/14/2019 Strategic Perspective of Mgmt- Group Assignment-SemII

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Strategic Perspective of Management- Assignment

Brand Analysis and Revival strategies: ONIDA

Team :

Sharbani Samanta - 06

Pritesh Shah - 09

Ashutosh Solanki- 28

Sonali Dandekar - 29


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Story so far..INTRODUCTION

Household name in television Onida was founded in 1981 and by1982 the company had

started assembling television sets at its own factory. Superior products backed up by

distinctive design, cutting-edge advertising and purposeful marketing made Onida a

household name in India. In addition to televisions, the company has recently made a foray

into other household appliances, including air-conditioners, washing machines, DVDs and

home theatre systems. For business and industry, Onida has introduced state-of-the-art

multimedia presentation products.

Onida, is still well known for its brand mascot The Onida Devil and its punch line

Neighbors Envy Owners 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.

However over a decade now the brand is suffering..

In1998, Onida withdrew the mascot citing the same reasons that they have given now. The

explanation given in 1998 was that Indian consumers no longer find Devil, who symbolizes

Envy, relevant. So they scrapped the famous tagline " Neighbour's Envy, Owner's Pride "

together with the Devil. But ever since it changed the tagline and mascot, Onida never

found a powerful positioning . After six years of drifting around, Onida brought back the

Devil with much fanfare in 2004. Media and brand enthusiasts welcomed the move and

eagerly awaited the Devil in a changed modern avataar. 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, promotions were not sufficient enough.

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


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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 Neighbors 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.

The following factors have diluted Onidas Brand Equity:

Onida is proving to be a case study about " How to Mess up a wonderful brand ".

As a marketer, the ownership of the brand should be with the Company and not the agency.

But what is seen is that the brand managers 'outsource' the strategy to the ad- agency.

Things are consistent till the agency handles the account. But when the agency moves on,

the new agency resist continuing the existing strategy since it was crafted by the

competitor.

So whatever be the quality of the existing branding strategy, the new agency will try to

change it. This has resulted in many brands drifting from time-tested successful themes to

uncharted territory and often sink in confusion.

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.

Onida has spent about Rs 40 crore on advertising and promotions in 2008 and its ad spends

are estimated at Rs 60 crore for the current year. Mindshare will handle the media duties for

Onida.

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 obviouscase 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.


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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:

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 has an inconspicuous young

couple which does not make an impactthe devil in this case would had been very powerful.

Visibility: The companies are associated with events and sponsorships. Like LG andVideocon 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:


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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 a sports icon or a bollywood star rather than the

inconspicuous couple(as per the current ads) where the recall value is poor .

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. Onidas problem of low visibility will be solved

with its sponsorship of event like rock shows, games, marathons etc.

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. Onida is now in one of the most

difficult times. The brand needs to come out with a product that will change the game.

Changing the mascot is secondary at this point of time.

Marketing Mix: Onida is facing a marketing problem and more than a branding problem.

Everything is fine with the brand. People recognize the brand. The issue is on a larger

perspective. It needs to concentrate on its entire marketing mix not just the brand elements.Onida needs to convince the consumers that its products are better designed and

technologically superior. It is about managing perception .Features can be copied by

competitors easily but changing perception is a difficult task.

strategic perspective of mgmt- group assignment-semii

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