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BRAND ANALYSIS
ONIDA
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.
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.
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.
Market characteristics
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.
Visibility: The companies are associated with events and sponsorships. Like
LG and Videocon are associated with cricket. This has resulted in better
brand visibility.
In order to revamp its position and brand value in the market Onida should
use the following strategies:
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.
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.