AMITY SCHOOL OF BUSINESS

SUMMER PROJECT
REPORT
On

Product Promotion in Onida

2009-
12
Faculty Guide: - Submitted By: - Anup Kumar
Maurya
Mr. Jitendra Tomar
BBA-G
Faculty Guide: - Submitted By: - Mohit
Garg
C-48
Ms. Deepali Khanna
BBA-G
C-42
 Acknowledgment

Words are the dress of thoughts, appreciating and acknowledging those who are responsible for the
successful completion of the project.
My sincerity gratitude goes to Mr. Jitendra Tomar who assigned us this responsibility to work on this
project and provided me all the help, guidance and encouragement to complete this project.
The encouragement and guidance given has made this a personally rewarding experience. I thank the
institution for support and inspiration, without which, understanding the intricacies of the project would
have been exponentially difficult.

I am sincerely grateful to my parents and friends who

provided me with the time and financial assistance and
inspiration needed to prepare this summer project
report in congenial manner.

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 Abstract

The project is an extensive report on how Onida markets its strategy and how
the company has been able in tackling the present tough competition and how
it is coping up by the allegations of the quality of its products. The report
begins with the introduction of the topic Product Promotion. This report also
contains company profile, production policy, advertising, export scenario. The
report includes some of the key salient features of market trend issues. In
today’s world of cutthroat fierce competition, it is very essential to not only
exist but also to excel in the market. Today’s market is enormously more
complex. Hence forth, to survive in the market, the company not only needs to
maximize its profit but also needs to satisfy its customers and should try to
build upon from there.

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 TABLE OF CONTENT

Sr. No. Chapter Name Page. No.

1. PREFACE 4

2. OBJECTIVE OF STUDY 5

3. INTRODUCTION 7

4. COMPANY PROFILE 18

5. PRODUCT PROMOTION 32

6. RESEARCH METHODOLOGY 40

7. MARKETING OF ONIDA 42

8. QUESTION FOR DISCUSSION 45

9. PRODUCT ANALYSYS 47

10. RECOMMENDATION AND CONCLUSION 54

11. BIBLIOGRAPHY 55

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 Preface

As we know that research work boost up the performance of management people and this is one of the
most eminent phases of management curriculum. It exposes the employee to the real world of business,
where he/she can apply the management theories.

The objective of research is to provide a patch of experience in the work field because without work
experience no professional curriculum is considered as complete. Thus every individual who is
undergoing this management program has to follow this phase of research study before he/she can
consider himself /herself fully qualified as a potential manager.

I am grateful to my institute which gave me an opportunity to have an exposure on research thesis.

I have taken this research work to study the leadership and performance appraisal

Being a management student this was my first experience and I cannot say that my findings are accurate
and there are no short comings. But still I would like to stress there that my efforts are sincere and
directed to achieve the desired results

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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 how ONIDA promote its product.

1. ONIDA
a. To study about ONIDA company profile.
b. To study about advertisement of ONIDA

The study will end with a conclusion giving a reflection of whole project and recommendations.

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 INTRODUCTI
ON

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PRODUCT PROMOTION

Promotion is one of the four elements of marketing mix (product, price, promotion, distribution). It is
the communication link between sellers and buyers for the purpose of influencing informing, or
persuading a potential buyer's purchasing decision. Generally, promotion is communicating with the
public in an attempt to influence them toward buying your products and/or services.

The word promotion is also used specifically to refer to a particular activity that is intended to promote
the business, product or service. A store might advertise that it's having a big promotion on certain items,
for instance, or a business person may refer to an ad as a promotion.

The diverse promotional tools involved in product promotion generally emerge to be a promotional mix
in any given organization. These include public relations, sales promotion, advertising, direct selling and
personal selling. Sales promotion is directed to utilize different incentive techniques so as to structure the
programs related to sales. It is a successful approach to add instant customer sales.

Product promotion is a key feature generally aimed to create a strong foundation of a newly launched
product of a company. It involves diverse functions like informing, persuading and reminding your
targeted customers to select a particular product or service. The entire promotional activity has to get
carefully handled as it is directly through this action that your own product or service is launched in the
market.

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Promotional Mix in detail :

Personal Selling

Personal selling involves selling a product or service on a one to one basis. This can either be done face
to face or over the phone. In our promotional section we talked about push and pull strategies. If the
organization is using a pull strategy to sell the product a sales force will be required to make sure that
retail outlets are looked after well, that they have enough stock, are trained well so they can push the
product onto the consumer. With a push strategy the sales force will need to try and persuade retail
outlets to carry stock of your product.

Direct Marketing

The aim of direct marketing is to create one to one relationships with the organizations target market.
Direct marketing can come in the form of post, email, telephone calls and mail order. The company
usually contacts a named person at the address.

Advertising

Advertising can be defined as placing your message in any form of paid media.

Advertising can have a number of objectives, these usually are

• To promote
• To remind
• To support
• To compete
• To persuade
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There are two types of advertising. Above the line advertising is advertising placed in TV, radio,
newspaper and cinema. Below the line advertising is based around advertising via direct mail,
sponsorship and sales promotion.

Sales Promotion

The aim of sales promotion is to increase short term sales and increase instore or web traffic. The tactics
used for this include loyalty cards, coupons, price promotions e.g. BOGOF, point of sales, packaging
promotion or web coupons.

Public Relations

Managing public relations is very important for the organization. Image in marketing is everything.
Having a good image helps the organization develop a trust and a bond between themselves and their
customers. This good will is invaluable. Public relations activities include press releases, Company
literature, videos, websites and annual reports.

Sponsorship

Sponsorship is about providing money to an event, in turn the product or company is acknowledged for
doing so. For example the Beijing Olympics in 2008 will partly be sponsored by Panasonic. Sponsorship
helps the company improve its image and public relations within the market and usually the company
attempts to sponsor a person or event that mirrors the image they are trying to aim for. Nike for example
have successfully sponsored the golfer Tiger Woods for many years.

Viral Marketing

Viral marketing occurs when consumers pass on or recommend your product/company/website to others.
This could be via email, or bulletin boards or word of mouth. There have been many well-known online
viral marketing campaigns. These include The Blair Witch Project and the establishment of Hotmail as a
leading free email provider.

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Sales Promotion
Sales promotion refers to the short-term incentives to encourage sales of a product or service. It consists
of a diverse collection of incentive tools, mostly short-term, designed to stimulate quicker and greater
purchase of products or services by consumers.

Purpose of Sales Promotion

Sales promotion tools vary in their specific objectives. They may be used to attract new customers, to
reward loyal customers and to increase the repurchase rates of occasional users. Sales promotion usually
targets brand switchers because non-users and users of other brands do not always notice a promotion.
Sales promotions are thus also seen as a tool for breaking down loyalty to other products.
Sales promotions also let manufacturers adjust to short term changes in supply and demand and
differences in customer segments.
They also let manufacturers to experiment by varying prices. Sales promotions also lead to greater
consumer awareness of prices.
To use sales promotion, a company must set objectives, select the right tools, develop the best program
and implement it and evaluate the results.

Objectives of Sales Promotion

The specific objectives set for sales promotions will vary with the type of the target market. For
consumer promotions, objectives include encouraging purchasing of larger sized units, building trial
among non-users and attracting switchers away from the competitor’s brands. For trade promotions,
objectives may include; including retailers to carry new items and higher level of inventory, encouraging
off-seasonal buying, of-setting competitive promotions, building brand loyalty of retailers and gaining
entry into new retail outlets. The sales force promotions help in encouraging support of a new product or
model, encouraging more prospecting and stimulating off-seasonal sales. But most importantly, sales
promotion should be focused on consumer relationship building.

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Sales Promotion Tools
Many tools can be used to accomplish sales promotion objectives. Descriptions of the main promotional
tools are as follows;
• Consumer Promotion Tools
• Trade Promotion
• Business Promotion

Consumer Promotion Tools

The main consumer promotion tools are as follows;

Samples:
They are offers of a trial amount of a product. It consists of inviting prospective purchasers to try the
product without cost or at a lower cost in the hope that they will buy the product. Samples may be free or
discounted.

Coupons:
Coupons are certificates that give buyers a saving when they purchase a specified product. Coupons can
be mailed, placed in advertisements or included with other products.

Rebates:
Rebate is also known as cash refund offers. Rebates are offers to refund part of the purchase price
of a product to its customers who send a proof of purchase to the manufacturer. These are like
coupons except that the price reduction occurs after the purchase and not at the point of sale.

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Price Packs:
Cents-off deals or price packs offer consumers savings by way of reducing prices that are
marked by the producer directly on the package.

Premiums:
These are the goods offered either free or at a low cost as an incentive to buy a product.
Premiums may be in-pack or on-pack (outside the pack).

Prizes:
They are offers of chance to win something such as cash, trips or goods – by luck or through extra
efforts. Contests of talent and sweepstakes or draws the most popular prize offering promotions.

Tie-in Promotions:
Tie-in promotions involve two or more brands or companies that team up on coupons, refunds or contests
to increase their pulling powers.

Cross Promotions:
Cross promotions involve using one brand to advertise non-competing brand.

Advertising Specialties:
These are useful articles imprinted with an advertiser’s name, given as gifts to consumers.

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Patronage Rewards:
They are cash or other awards for the regular use of company’s products or services. They are values (in
cash otherwise) that are proportional to one’s patronage of a certain vendor or a group of vendors. They
aim at building brand loyalty.

PoP Promotions:
Point of purchase (PoP) includes displays and demonstrations that take place at the point of purchase or
sale.

Trade Promotion Tools

More money is spent by companies on trade promotion (58%) than on consumer promotions (42%). The
major trade promotion tools are as follows;

Discounts:
It is also known as price-off or off-invoice or off-list. Discounts price cut off the list price on a particular
quantity purchased during a stated time.

Allowances:
They are the amount offered in return for an agreement by the retailer to feature the manufacturer’s
products in some way; displays, advertising or otherwise.

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Free Goods:
Free goods are the extra merchandise offered to middlemen who buy a specific amount of a product.
Companies also offer push money and specialty advertising items to the middlemen.

Business Promotion Tools

Companies spend huge amount on promotions focused on industrial consumers. The major business
promotion tools are as follows;

Trade Shows and Conventions

Sales Contests.
Clearly, sales promotions play an important role in the total promotion mix. To use it well, the marketer
must define the sales promotion objectives, select the best tools, design the sales promotion program,
pretest and implement the program and evaluate its results.

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 A Look into the Indian Economy
India is the fourth largest economy in the world and it’s the largest democracy with second largest GDP
among emerging economies. World Bank’s President James D. Wolfensohn confirmed that India is not
the world’s 4th largest economy after USA, China and Japan in PPP (Purchasing Power Parity). It is also
one of the ten fastest growing economies in the world. With 1 billion populations, India remains on the
fastest growing economies and even in the present worldwide economic slowdown, has maintained GDP
Growth rate of nearly 6%.
India today is 7th most attractive destination for foreign direct investments, after US, China, Brazil,
Mexico and Germany. Besides, India offers higher rate of returns and profitability than anywhere else in
the world.
Out of 1 billion population the upper and middle class constitutes 20% or 200 million people (or 30 to 40
million houses). By rent per capita:
2 percent of Indian has a per capita income in excess of 14,500 Euros, which means 20 million people.
8 percent of Indians have a per capita income of more than 3,900 Euros, which means 80 million people.
10 percent of Indians have a per capita income in excess of 3,200 Euros, this is about 100 million people

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 Overall Economic Scenario
The Indian market has been enormous with a large base.
Levels of affluence are high- with the number of individuals in the “high: income demographic group
doubling each year, according to NCAER statistics.
The actual “disposable” income at the disposal of the affluent Indian is as high as three to five times
higher as the official statistics, on account of the very large proportion of unaccounted (“black”) money
income.
The market has, due to exposure to overseas products and lifestyles, displayed the willingness and ability
to purchase overseas brands and products at high prices.
Customs duties and tariffs have been drastically reduced, in keeping with government policy to open up
the economy – a policy which has stayed constant despite changes in government. All the products in
the INDEX product range are now permitted for import into India under OGL or the Open General
License, which implies that no special import license is required for import.
Despite the cut in duties, the rate of customs duties is fairly substantial which makes the prices of
products higher in India. There is a huge demand for furniture, hardware and fittings, DIY equipment,
lighting and consumer non-durable and appliances.
While the Indian middle class still does not have as high a rate of obsolescence as the US, and tend to use
their furniture for several years before changing or upgrading, the actual size of this segment makes
investment in this market more than worthwhile. The affluent classes however, do have high rate of
obsolescence of interior decoration products and redecorate constantly.
All the above factors put together make manufacturers and retailers of a wide range of consumer
durables. Several overseas companies have already entered the market and have been extremely well
received by the market.

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 INTRODUCTION

TO

THE COMPANY

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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 products 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. 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.
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 Vision and Mission

Vision

To build a product 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.

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, which 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 - The 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

Innovation is the progress by adjusting to ever-changing environment around us. As the world moves
forward, we must keep-in-step.

Gratitude
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Always repay the kindness of our customers, associates, community, nation and friends worldwide with
gratitude.

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 along with 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
judgment 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

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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 improper activity. Set forth, are some of the common circumstances that may lead to
a conflict of interest, actual or potential:
 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.
 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.
 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.

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 product.
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 product. 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
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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.

Compliance

Directors and the senior management personnel 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
behavior, 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.

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 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.

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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
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
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dependence or influence (e.g., an auditing or control relationship, or a supervisor/ subordinate
relationship). The purpose of this policy is to prevent the organizational 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. Willful 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
authorized 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 authorized. This obligation extends to confidential information of third
parties, which the company has the rightfully received under Non-Disclosure Agreements.

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 have, as a consequence of their position with the company, are
more likely to be exposed to material nonpublic information about the company. These directors,

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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 perceived to be intended) to obtain business (or uncompetitive) favours or decisions for the conduct
of the business. Accordingly, each director 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 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 Product and logo

'ONIDA' and ‘IGO’ are the registered products 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

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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 opportunity that are discovered through the use of the company's property, information or position
unless the opportunity is disclosed fully in writing to the company's board of directors and the board of
directors declines to pursue such opportunity.

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.

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

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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

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
: 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

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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. Sri Ram Krishnamurthy (Vice President - Marketing, Sales & Service)

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

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 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 product 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.

PRODUCT
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 PROMOTION

IN

ONIDA

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34 | P a g e
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 product of consumer electronics and home
appliances.

Only now, it's something 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.

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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, and 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 jaggy
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 upscale to 1080p, that’s quite nice, we’ll take
that thank you.

TV ADS
Ads
Onida has also provided a pool of television ads, endorsed to the celebrities. And also invested much in
this area. McCann Erickson had bagged the creative account for TVs, DVDs and masterbrand for Onida,
which was earlier handled by Rediffusion DYR. Joshi, who is the Executive Chairman and Regional
Creative Director South Asia of McCann Erickson, is holding his ideas close to the chest and declined to
give a sneak peek into the creative side of the campaign but said it would be a fresh one. "Campaign for
Onida's lower end IGO TV is done by us and we are also designing advertisements for the entire
television range," Joshi said. Yet, Joshi has his task cut out -- making the 'devil' feel at home promoting
more technologically advanced products.

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"We are increasing focus on LCD television this year and are looking at new creative focus on our
electronics range, including LCD TVs which will play a major role," said Vivek Sharma Vice President
(Marketing and Sales) Mirc Electronics, which owns the Onida brand.
He said the company has moved advertising account for its TV, DVD and Masterbrand to McCann
Erickson from Rediffusion DYR to "enhance creative image of the brand" but the account for appliances
division, including washing machines, A/Cs and microwaves remains with Rediffusion DYR. Sharma
said the company plans to retain the 'devil' as its mascot in its new campaign considering high recall
value and representation of the Onida brand. "Devil represents the core value of the brand, people
remember and relate him with Onida," he said. The company has already launched the ad campaign for
its IGO TV and advertisements for rest of the range of TVs would be on air next month.

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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.
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.

TYPE OF DATA COLLECTED

The type of data collected here is secondary data.

Secondary data is data collected from indirect sources.

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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 MARKETING
OF
ONIDA

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MARKETING OF ONIDA

Product Update: Onida

Onida has ventured into mobile phones. The product has launched the phones in the price range of Rs.
1500-8000. The product hopes to cash in on the equity of the product 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 product 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 product has extended to mobile phones. The power of Onida product was
visible during the recent spat between the brothers. Despite the management issues, the product was able
to hold on to double digits market share in the CTV segment. During the last year, the product 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 products. The slogan used in the print ad is
“Call Your Other Side ". The product calls itself “Wickedly tempting" which will bring the spunkier side
in you.
I feel that the product has jumped into this category too early. The product although enjoys a good equity
has not been nurtured in the past couple of years. So without nurturing the core product, any extension is
going to have a negative impact.
On the other side, the extension can also bring freshness to the core product. Onida may be hoping that
the extension can rejuvenate the product.
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 and almost all celebrities are
booked by different products. 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 product 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 have 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 product building.

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The ONIDA Devil ‘Returns

The caselet elaborates on the efforts taken by Mirc Electronics to promote its television product Onida.
The caselet describes how the product mascot - ‘The Onida Devil', helped Mirc Electronics gain product
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 product 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 product recall for its television product.

Issues:

» Product mascot and its role in product management

» Use of advertising appeals in marketing communications campaigns

» Promotion of consumer electronics products in India

» Importance of focus group study in marketing communications

Onida, a leading television product, is still well known for its product mascot ‘The Onida Devil’ and its
punch line “Neighbor’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 product recall among the customers and
become one of the top three television products in the country. In 1998, Mirc Electronics (the owner of
Onida product) decided to abandon the “Onida Devil” in its communication campaigns as the product
mascot no longer appealed to the Indian consumer.

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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 product 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 product was strongly associated with its product mascot the Devil, and Mirc
Electronics made efforts to change this perception among the consumers, by abandoning the
product mascot in 1998. But, the company had to bring back the Devil in 2004. Evaluate the pros
and cons that a product like Onida faces, when it is linked to the product mascot and not the
product 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 come 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 product 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 product appealing to the youth.
Onida finally decided to use the cricket World Cup as a vehicle to rejuvenate the product. 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

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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
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 products like Sony, National Panasonic and Toshiba, and Korean products 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 color to its 20-inch offering...

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 PRODUCT
ANALYSIS

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PRODUCT ANALYSIS

WHY ONIDA AS A PRODUCT 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 product and even the marketing
of Onida. Onida was staging a recovery after the successful re-launch of the product and the return of the
Devil. But the family feud has made things difficult for the product.

Frequent change in Advertising: What is interesting about Onida is the

producting. The creative duty of the product 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 product
elements changes. For Onida, the change till now unfortunately is always for the worse. When O&M
took the product from Avenues, the famous tagline “Neighbor’s Envy, Owner's Pride” and the Devil
was taken off. The product 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 product has not been able to consolidate the earlier theme based on 'truth'.
Even before establishing it, the product has repositioned again.

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Aging customer base: The customers of Onida have grown older with times and the
product has failed to connect itself to the current generation. The “devil” in the advertisements in not
helping it either.

The following factors have diluted Onida’s Product Equity:

Product amnesia: For old products, as for old people, memory becomes an increasing issue.
When a product forgets what it is supposed to stand for, it runs into trouble. The most obvious case of
product amnesia occurs when a venerable, long-standing product tries to create a radical new identity,
such as when Onida tried to replace its original tagline with new one. The results were disastrous.

Product fatigue: Some companies get bored with their own products. This can happen to
products which have been on the shelves for many years, collecting dust. When product fatigue sets in
creativity suffers, and so do a sale which was and is the case with Onida.

Product paranoia: This is the opposite of product ego and is most likely to occur when a
product faces increased competition. Typical symptoms include: a tendency to file lawsuits against rival
companies, a willingness to reinvent the product every six months, and a longing to imitate competitors.

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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, Product 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
products 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 products. On the other hand Onida is stuck with its old “Devil” which isn’t helping.

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Visibility: The companies are associated with events and sponsorships. Like LG and Videocon are
associated with cricket. This has resulted in better product visibility.

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 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 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
behavior in India and realizing this fact MIRC ELECTRONICS LTD.; a premier player in color 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.

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Washing machine sales volume in India has crossed 1 million marks 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 product icons and mascots are well known for creating and sustaining product awareness
where none existed. The right use of product icons makes sure that people relate with the product 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 product 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 misproducting 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
recognizing the uniqueness of Onida’s product 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 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.

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The new TVC, directed by Shamin Desai, is also an introduction to Onida’s unified product 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 product of
TV does not mean that you too have to buy the same product.”
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 product message, “Nothing but the truth” with a 360-degree
marketing strategy. As Onida’s product value is that of honesty and transparency, we will tie up with TV
channels, press, outdoor, and POS to connect the product with anything to do with ‘truth’.”

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CONCLUSIONS AND RECOMMENDATION

At last I would like to conclude that ONIDA is the real pride of India. It exports a major part of its
product to foreign countries and brings foreign exchange to India. When we come to the domestic market
of ONIDA and as we get to the promotional technique of ONIDA, then ONIDA is much behind the other
companies like LG, Videocon, etc. Their marketing strategies are much stronger than ONIDA.

In order to revamp its position and product value in the market Onida should use the following strategies:
 Onida should stick with a uniform positioning strategy rather than changing it with time as they
did.
 The Company should go for a better adverting. The company can rope in a celebrity to endorse its
product. This way the product can be benefited from celebrity’s product equity.
 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.
 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.

So in order to recreate its domestic market it will have to focus the above mentioned points. And
implement them.

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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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