Onida 'Candy'-Getting the Marketing Mix Wrong?

            
 
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Case Details:

Case Code : MKTG011
Case Length : 6 Pages
Period : 1999 -2001
Pub Date : 2001
Teaching Note : Available
Organization : Mirc Electronics
Industry : Computers & Electronics
Countries : India

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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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"It was the first non-serious approach to regular television."

- N Chandramouli, vice president, sales, marketing and service, Mirc Electronics, commenting on the launch of Onida 'Candy.'

Introduction

Onida's1 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%).2

However, almost 45% of its sales had came 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 brand 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.

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

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 brand appealing to the youth.

Onida finally decided to use the cricket World Cup as a vehicle to rejuvenate the brand. 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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1] Onida was a brand of Mirc Electronics. Soon after the New Delhi Asiad, two brothers, Gulab and Sonu Mirchandani identified an opportunity in the nascent television market. Sonu entered the television market in the northern and eastern parts of the country through his company, Monica Electronics, and Gulab entered the TV market in the south and west of India with Mirc Electronics. Onida was launched in 1984.

2] Refer Exhibit I

 

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