Marketing Project
Complied by Sankalp Oberoi XII J
Acknowledgement
Index
1. About Onida Established First Years New products introduced in the market Achievements
2. Product Life Cycle What is Product Life Cycle? Different Stages involved in PLC Strategies used Brief of PLC of Onida TV
3. Onida TV 4. Other Products launched 5. Bibliography
About Onida
G.L. Mirchandani and Vijay Mansukhani started Onida in 1981 in Mumbai. In 1982, Onida started assembling television sets at their factory in Andheri, Mumbai. Since then, Onida has evolved into a multiproduct company in the consumer durables and appliances sector. Onida achieved a 100% growth in ACs and microwave ovens and a 40% growth in washing machines last year. ONIDA came out with the famous caption 'Neighbors envy, Owner's Pride', another popular theme of the ads was a devil complete with horns and tail in the 1980s. A married couple - Siddharth and Ritu, replaced the devil. Onida has a network of 33 branch offices, 208 Customer Relation Centers and 41 depots spread across India. As on 31 March 2005, Onida had a market capitalization of Rs. 301.46crore
First Years
In 1983 Onida established technical collaboration with JVC, Japan for CTVs. In 1985 they established in-house R&D wing. In 1986, production expanded and moved to a new factory at Kalina. In 1987, Onida moved to their own factory building Onida House. The same year, Iwai, The speaker plant commenced its operations. In 1990, Tuner plant commenced operation. In 1991, Akasaka, PCB Plant commenced its operations and the a new plant for CTV was established in Vasai. By 1992, Onida had crossed 1 million CTV sales and by 1994 they moved the plant to a fully automated Plant of 600K CTV per year at Wada. In 1995 they acquired the ISO 9001 certification from the BVQI.
In 2000, Onida launched the KY Thunder, Profile Series. In 2002, they completed plant expansion project to increase capacity of production from 600K to 1.2 million CTVs per year. In 2003, operations were started in Russia for production and sale. By 2004-05 Onida had achieved 1.20 million sales of the CTVs and in 2005 Onida launched the POISON range of TVs. In 2009, ONIDAs Brand relaunch campaign Tumko Dekha Toh Ye Design Aaya to communicate its philosophy of thoughtful product features that designed keeping customers in mind.
New Products Introduced In the Market
In 1999, Onida was the First in India to introduce the Internet enabled CTV. In 2001, Onida launched Onida Black, Flat TV Range. Also launched Multimedia Projectors. In 2002, Launched the KY Theatre with circle surround sound, the first complete Home Theatre Package. Launched Igo The economy brand. Also launched VCD players In 2003, Onida launched the Worlds first LCD remote i-Control. During this time, Onida also launched Air Conditioners, Rear Projection TV, Plasma TV and Washing Machines. Also launched the Fully Automatic front loading Washing Machines. In 2004, Onida launched the Oxygen Series CTV. Also launched Microwave Owens. In 2010, Launched LED TVs with I-care Technology.
Achievements
1998 : Award for excellence in electronics by ministry of IT 2001 : AV Max award for best CTV 2003 : Onida launched the Worlds first LCD remote i-Control. 2003 : Operations started in Russia 2004 : Mr. Gulu Mirchandani, CMD awarded Man of Electronics for the year by CETMA 2010 : Achieved during November, growth of 20% in value as compared to last year
Product Life Cycle
Like human beings, products also have an arc. From birth to death, human beings pass through various stages e.g. birth, growth, maturity, decline and death. A similar life-cycle is seen in the case of products. The product life cycle goes through multiple phases, involves many professional disciplines, and requires many skills, tools and processes. Product life cycle (PLC) has to do with the life of a product in the market with respect to business/commercial costs and sales measures. To say that a product has a life cycle is to assert three things:
Products have a limited life, Product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller, Products require different marketing, financing, manufacturing, purchasing, and human resource strategies in each life cycle stage.
Product Life Cycle involves four stages: 1. Introduction 2. Growth 3. Maturity 4. Decline
Stage 1 : Introduction
This is the starting stage of the Product. It is the introduction of the product in the market. The costs are very high. It takes time for sales volumes to pick up and they are slow. As it is a new product in the market, there is minimum or no competition in the market. The demand for the product has to be created through advertising and other promotions. The customers have to be prompted to try the product, as it is a new one. The firm does not make much money out of the product at this time.
Strategies to be implemented: Advertising the product in the market Offering discounts Promotion through giving away gifts and other methods to attract the consumer Generally, the cost is very high and demand is low Money back guarantee may be offered to stimulate the people try the product Ironing out of product deficiencies
Stage 2 : Growth
This is the second stage in the Product Life Cycle of the Product. During this time, the product is recognized in the market and there is an increase in the demand. The cost of the product reduces due to economies of scale. There is an increase in the sales volume of the product. The profitability starts to rise, as there is more demand and selling of the product. As the product is recognized, the public awareness increases in the market. There is an increase in the competition in the market as there is new competition in the market from other producers. Because of the increased competition in the market, there is a fall in the prices to keep up with the competition.
Strategies to be implemented : Decrease prices Product to be advertised heavily to stimulate sales New versions of the product are introduced to cater to the requirements of different types of customers The channels of distribution are strengthened so that the product is easily available wherever required Brand image of the product is created through promotional activities The price of the product is competitive There is greater emphasis on customer service
Stage 3 : Maturity
The product enters into maturity as competition intensifies further and market gets stabilized. Profits come down because of stiff competition, and marketing expenditures rise. The prices are decreased because of competition and innovations in technology. There is saturation in the market as there is no possibility of sales increase. This stage may last for a long periods as in the case of many products with longrun demand characteristics. But sooner or later, demand of the product starts declining as new products are introduced in the market. Product differentiation, identification of new segments and product improvements are emphasized during this stage. Industrial profits go down.
Strategies to be implemented : Product may be differentiated from the competitive products and brand image may be emphasize more The warranty of the product may be extended. For instance manufacturers of typewriters have introduced the concept of life time warranty Reusable packaging may be introduced New markets may be developed New uses of the product may be developed
Stage 4 : Decline
This stage is characterized by either the products gradual displacement by some new products or change in consumer buying behavior. The sales fall down sharply and the expenditure on promotion has to be cut down drastically. The decline may be rapid with the product soon passing out of market or slow if new uses of the product are found. Prices and profitability suffers a fall because of less demand. Costs become counter-optimal.
Strategies to be implemented : New features may be added to the product and its packaging may be made more attractive Economy packs or models may be introduced to revive the market The promotion of the product should be selective to reduce distribution costs
Onida CTV
