Multi-Branding Strategy of Videocon Industries in the Consumer Durables Sector

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Case Details:

Case Code : MKTG116
Case Length : 17 Pages
Period : 1980 - 2005
Pub Date : 2006
Teaching Note :Not Available
Organization : Google Inc.
Industry : Consumer Durables
Countries : USA

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Introduction Contd...

The announcement was in keeping the multi-branding strategy that VI had adopted to tackle the intense competition that it was facing in the white goods market in India.

Earlier, VI entered into an agreement with Korea-based Hyundai Electronics Limited to market the Hyundai brand in India. VI had also entered into licensing agreements with Toshiba and Sansui to market their brands in India. Analysts pointed out that VI was forced to take refuge in other brands because the Videocon brand was unable to withstand the onslaught of MNC brands, especially the Korean ones.

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However, there were other analysts who appreciated the company's multi-branding strategy, saying that it was because of such a strategy that VI was still a force to reckon with.

They also pointed to VI's large production capacity, which meant that it had to have a large sales volume in order to utilize its production capacity to the fullest and remain cost-effective.

The multi-branding strategy, it was felt, worked to improve VI's overall sales. VI was a profitable company (Refer Exhibit I for VI's financials) and had the resources to sustain a multi-branding strategy.

However, analysts expressed reservations about the rationale of adopting such a strategy in the long run...

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