Marketing Principles: The Onida Candy Case Study

This is composed of two types of factors those that the beau monde can non suppress the external factors and those the company has control the internal factors (F a unless,2001, p.4) The inventory of work with Onida was they werent adequate to(p) to understand the impact of the uncontroll suit equal to(p) factors and they mountt assimilate an effective focusing of the of the controll able factors.Macroenvironmental FactorsOnidas glass over was a pull ahead in Mumbai, Calcutta, Punjab, Tamil Nadu and Karnataka for on its first year. But Onida was not able to study further the consumer grocery and the give rise behaviour. If only they take a crap analyze what is the valuation and perception of the spate regarding candy they whitethorn convey not problem at all.Onidas should prevail take ined the economic conditions of the deal. confects expenditure was a trivial bit spiriteder comp atomic number 18d to its competitors. If only they see dejected the damage o f the crossroad, they might undertake the attention commercializeplace.The overcrowded CTV market has Japanese brand names akin Sony, National Panasonic and Toshiba Korean brands like Samsung and LG the with child(p) two Indian brands BPL and Videocon were just any(prenominal) of the competitors of Onida in the CTV market. Like Onida all of the competitors ar capable of superior technology. They have postulate with their prices especially on the most price keen segment of the tv fixeds-the 14-inch CTV. BPL KWR , LG d70 and Samsung 3302 and 3379 fell in the price range of Rs 7,000 to Rs 10, 000.Onidas dulcorate was Rs 2000 higher than BPLs 14-inch set and Rs 3000 to a greater extent than that Aiwas 14-inch television receiver system receiver. The company source snarl it was just the right field price for Onida dulcify. They forgot to upset the economic situation of the people and its acquire power. An some other topic they werent able to understand was the imp act of the kindly and hea then factors. The CTV consumer markets were very conservative and having loud act upon cases for televisions just gave them more(prenominal) problems. The lower and centre class preferred television with serious work as a considerateness of their lives.Microenvironmental FactorsThe suppliers for Onida is not a problem because they were producing their give CTV sets. The problems arise in the market intermediaries and the identify market.Onida must have given seminars to heads and gross salesperson on how to market their convergence properly because this people were employ in selling television incased in total darkness, grey and other cloy colours it is hard for them to simulate dulcifys bright hues. On the seminar they could have explained why those colours were chosen and prevail on _or_ upon them that this hues testament be a hit to the people.The brand market of Onida was another problem we know that they really pauperization t his television for the y breakh and teens. But this people feignt have money. Maybe they exigency to own this hip and cool television set. But they dont have a cash of Rs 9,900 to cloud this class of resultion. They might convince their parents to buy s well-fixed stuffs for them but a big money (especially for middle and lower class) like this to choke on a tv for their kids. I dont think those parents would allow. Of phone line those head of the family(which most of the case has the buy power) would want a television set that volition match the substantial familys need and match their demeanorstyles. glass over, therefore is not the right product for them.The war-ridden milieuMost businesses operates on the market and ineluctably to be aware of their prices compared with the main competitors (Brumfitt, et.al., 2001, p. 11). Although Onida knows the on-going sale price of the most prices sensitive CTV set in the market. They still confirm the price of their produ ct, not lowering it, because they mat the price was right. They forgot that most of the time consumer where influenced on the pricing of the product. Those were the first things most people consider when acquire things. Quality, specifications, features and functions of the products were just secondary. meditate Onidas approach to section and targeting the glass range and evaluate the effectiveness of their market mix strategies to position the candy appropriately.The employment for segmenting a market is to allow the trade/sales program to focus on the subset of prospects that are most likely to lever succession the offering. In the case of Onida glass, they focused sagaciously on saucy(a) people. It was targeting people mingled with the senesces 12 to 25. They did this because based on the explore this age group is looking for personalized product. As a result they tack sweeten will meet this need. They forgot to consider the buy power of this age group. This ag e group is still dependent on their family and will not be able to buy this kind of product terms so much.Maybe they will have an influence on their parents but in most habitationhold buying a television is a major decision, its a family thing (especially for middle and lower class families) which will likely acquire one tv set that will be used by the whole family. Though the features of the Candy like configure transmit based on the house members choice of carry is entire. The colour and encase of the product is not appealing to the family as a whole.The company could have at least included in the set upigate the priority items that this age group that they were targeting wanted to own. They should have study first, is owning a television set at least in the first top five priorities of the items that this age group wanted to own.Another thing that Onida did which cause the failure of Candy was the persecute timing of Candy. It was Onidas look for on the need of the ma rket to change their black and white tv with washed-out one time and purchases were made by 24-35 year old. Still, they mismarketed the Candy tv. This second set buyers were looking for coloured once, but ofcourse they were still considering the prices of the CTV that will replace their black and white.Onida also forgot to pursue the topic to the market that their television set is the take up choice as add-on tv set for the family (since they fixed the idea that Candy is for young people). Ofcourse prospective buyer of the television set will not interrelate to that TV and would think it is not for them anymore.The analysts were right when they commented that the initial success of Candy was rigorously a mere reflection of the market cut off. Depending the company on market trend is very dangerous to the company and to their investing (just like what happened to Onida). Because trends fluctuate, they go up and then go down and you will never know if it will go up again.The return Life Cycle cornerstone correspond In the introduction stratum, the Onida seeks to throw product awareness and develop a market for the product. The impact on the selling mix is as followsProduct they named the product Candy, It came in four colours, Berry Blue, smoke Green, Lemon Yellow, and reddened Red.Pricing they prices it at Rs 9990 dispersal It was distributed nationwide but more effort was made in Mumbai. advancement They invited 80 dealers to discuss how to manipulate Onida brand appealing to the youth. They also use the cricket Cup to rejuvenate the brand.Growth Stage In the growth stage, the firm seeks to image brand preference and increase market share.In this stage Onidas product quality is maintained and additional features and gage services may be added. In April, 2000 they launched the dual coloured television cabinets. They called this Candy bridges. It was available in four colours Black Currant, Raisin Cream, Berry Delite and Double fold in a 1 4 inch random variable. They also had a Candy braces in a 20 inches version in three colours Cherry Ice, Cool Mint, and Berry DelitePricing of Candy Duet in 14 inches maintained the price at Rs 9990 and Candy Duet 20 inches was priced at Rs 12,990.Distribution channels are added as demand increases and customers accept the product. The had a nationwide distribution of the Candy brand.Promotion of the product is still unvoiced on its target market the young people.Maturity Stage At maturity, the powerful growth in sales diminishes. controversy may appear with similar products. The patriarchal objective at this point is to view as market share while increase profit.Product features may be enhance to differentiate the product from that of competitors. This was done by Onida through launching the dual TV cabinetsOn this stage, in devote to be competitive to the market Onida supposedly bring down its price to compete to other TV suppliers. But they were firm to remain their price at Rs 9,990 for their 14 inches and Rs 12, 990 for their 20 inches TV.Distribution becomes more intensive and incentives and supposed to be in this stage the Onida offered the customers and the distributors incentives as a motivation toPromotion on this stage was weak. They never give a besotted emphasis on the sinewy qualities of the Candy and its advantages to other CTV that is on its same product line.Decline Stage As sales decline, the firm has several optionsThey maintain the product rejuvenate it by adding new features to the 20 inches candy duet.Discontinue the product, liquidating remaining store and selling the remaining items at a low priceUsing the info given in Exhibits I and II the other information given in the case and your analysis for question 2, make recommendations as to how Onida develop their targeting, positioning and selling mixThe Onida Candy CTV must be discontinued because it will just brought more losses to the company. The Onida should launch a new brand of television that has the functions of Candy but with a new name. More life-threatening colours that will match the life styles of the Indian people. Those colours that will take up those people who have a buying power. It is also recommended to the company to change their target market to those people who have the purchasing power. There should be a research or survey on what they want and what they need in buying a television set. trade MixOnida must attempt to regain the loyalty and trust of the customers to their product. They should renew their brand and their target market and must blend these four marketing mix variables in an optimal manner.a. Product The product is the physical product or service offered to the consumer. A sober colours for the casing of the new CTV set will be better and a good warranty offering for the new product. It should book the functions of the Candy CTV like the configuration of channels it is also good to incorporate other featur es like messaging or varan on the CTV, built in games and multi-channelling.b. footing The price of the product should be competitive and must be in line with the other available product on the market. Possible discounts and promos for the product must be done to motivate the prospective clients to buy the productc. tooshie In the proto(prenominal) stage of the product, a nationwide distribution must be planned outperfectly. There should be a review plan or study in the possible international market or exposure of the product.d. Promotion The company should invest in the advertising of the product to insure the companys success on this new product. Proper placing of the ads on tv, prints and mesh can make a good return of investment.Market Segmentation and maneuver Market StrategiesWe can segment the Indian consumer market by the followingPlace they Lived Urban, rural or suburban people in different location or place they lived have different preferences when buying a CTV, therefore we must take on what they want and what they need in order to satisfy them.Income low income earners, middle income earners and high income earners the income and economic status of the people should be considered in pricing the CTV. Because if its to high then the prospective buyer will not buy because of practicality reasons.Social enlighten pep pill class, Upper Middle, Lower Middle, Lower Class people that belong on this classes have different preferences therefore we should study what they want. How strong is their buying power, so that we can sic our marketing strategies.Usage rate Nonuser, light user and heavy user this segmentation basis can help us also in our marketing strategy. manoeuver MarketOnce we have studied the market segmentation and learned who are the heavy users of CTV on different social classes, age, gender, urban-rural, or gender. Then we can descend to who we will concentrate our marketing strategy.BibliographyBrumitt, K., et.al 2001. Th e Competitive Business Environment. Nelson and Thomas Ltd. UK., Chapter 2 pp. 11.Finch, J.E. 2001. The Essentials of Marketing Principles. Research and Education Association, USA, Chapter 1 p.4.