Marketing Principles: The Onida Candy Case Study

This is composed of two types of factors those that the political party wad non control the external factors and those the participation has control the internal factors (F march,2001, p.4) The problem with Onida was they werent able to understand the jar of the ungovernable factors and they dont create an effective management of the of the controllable factors.Macroenvironmental FactorsOnidas sugarcoat was a hit in Mumbai, Calcutta, Punjab, Tamil Nadu and Karnataka for on its number 1 year. But Onida was not able to find out further the consumer foodstuff and the get behaviour. If only they have analyse what is the evaluation and perception of the population regarding glass they may have not problem at all.Onidas should have considered the economic conditions of the battalion. sweetens hurt was a olive-sized bit higher comp ared to its competitors. If only they have leveled the price of the crossroad, they tycoon get the attention securities industry.The overc rowded CTV trade has Japanese brands like Sony, National Panasonic and Toshiba Korean brands like Samsung and LG the big two Indian brands BPL and Videocon were yet some of the competitors of Onida in the CTV mart. Like Onida all of the competitors are capable of superior technology. They have vie with their prices especially on the almost price sensitive segment of the boob tubes-the 14-inch CTV. BPL KWR , LG d70 and Samsung 3302 and 3379 mow in the price range of Rs 7,000 to Rs 10, 000.Onidas glaze was Rs 2000 higher than BPLs 14-inch locate and Rs 3000 more(prenominal) that Aiwas 14-inch television. The company source felt it was just the good price for Onida Candy. They forgot to consider the economic situation of the hatful and its acquire power. Another affair they werent able to understand was the allude of the social and cultural factors. The CTV consumer markets were very conservative and having loud color results for televisions just gave them more proble ms. The lower and nitty-gritty class preferred television with sober colour as a coefficient of reflection of their lives.Microenvironmental FactorsThe suppliers for Onida is not a problem because they were producing their give birth CTV circumscribes. The problems arise in the marketing intermediaries and the post market.Onida essential have accustomed seminars to dealers and salesperson on how to market their merchandise mighty because this people were used in selling television cased in black, grey and other dull colours it is hard for them to accept Candys b upright hues. On the seminar they could have explained why those colours were elect and impel them that this hues ordain be a hit to the people.The steer market of Onida was another problem we know that they really sine qua non this television for the jejuneness and teens. But this people dont have money. Maybe they want to own this hip and cool television put in. But they dont have a cash of Rs 9,900 to buy this kind of product. They might convince their parents to buy small stuffs for them but a big money (especially for middle and lower class) like this to spend on a tv for their kids. I dont think those parents would allow. Of course those head of the family(which most of the case has the buying power) would want a television set that will equalize the whole familys need and match their lifestyles. Candy, therefore is not the right product for them.The Competitive EnvironmentMost businesses operates on the market and of necessity to be aware of their prices compared with the main competitors (Brumfitt, et.al., 2001, p. 11). Although Onida knows the ongoing sale price of the most prices sensitive CTV set in the market. They still justified the price of their product, not lowering it, because they felt the price was right. They forgot that most of the time consumer where influenced on the set of the product. Those were the first things most people consider when buying things. Qualit y, specifications, features and functions of the products were just actary. test Onidas approach to segmentation and targeting the Candy range and evaluate the potential of their marketing admixture strategies to position the Candy appropriately.The purpose for segmenting a market is to allow the marketing/sales program to focus on the subset of prospects that are most likely to purchase the offering. In the case of Onida Candy, they focused sapiently on young people. It was targeting people between the ages 12 to 25. They did this because based on the look for this age group is looking for personalized product. As a result they configured Candy will meet this need. They forgot to consider the buying power of this age group. This age group is still dependent on their family and will not be able to buy this kind of product cost so much.Maybe they will have an influence on their parents but in most household 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 configured transmit based on the house members quality of channels is good. The colour and packaging of the product is not appealing to the family as a whole.The company could have at least included in the research 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 wrong timing of Candy. It was Onidas research on the need of the market to deputize their black and white tv with coloured once and purchases were made by 24-35 year old. Still, they mismarketed the Candy tv. This second set purchasers were looking for coloured once, but ofcourse they were still considering the prices of the CTV t hat will replace their black and white.Onida overly forgot to pursue the idea to the market that their television set is the best choice as add-on tv set for the family (since they unbending the idea that Candy is for young people). Ofcourse prospective buyer of the television set will not relate 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 purely a mere reflection of the market trend. Depending the company on market trend is very terrible to the company and to their investment (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 Product Life CycleIntroduction Stage In the base stage, the Onida seeks to build product awareness and develop a market for the product. The impact on the marketing mix is as followsProduct they named the product Candy, It came in four colours, pluck Blue, Mint Green, Lemon Ye llow, and Cherry Red.Pricing they prices it at Rs 9990Distribution It was distributed nationwide but more effort was made in Mumbai.Promotion They invited 80 dealers to discuss how to make Onida brand appealing to the youth. They in like manner use the Cricket Cup to rejuvenate the brand.Growth Stage In the outgrowth stage, the firm seeks to build brand preference and increase market share.In this stage Onidas product quality is maintained and superfluous features and support services may be added. In April, 2000 they launched the dual coloured television cabinets. They called this Candy Duets. It was available in four colours drab Currant, Raisin Cream, Berry Delite and Double Mint in a 14 inch version. They also had a Candy duet 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 dissemination of the Candy brand.Promotion of the product is still brookd on its target market the young people.Maturity Stage At maturity, the bulletproof growth in sales diminishes. Competition may appear with similar products. The uncreated objective at this point is to defend market share musical composition maximizing profit.Product features may be enhanced to oppositeiate the product from that of competitors. This was done by Onida through launching the dual TV cabinetsOn this stage, in ordering to be competitive to the market Onida supposedly get down its price to compete to other TV suppliers. But they were firm to persist in their price at Rs 9,990 for their 14 inches and Rs 12, 990 for their 20 inches TV.Distribution becomes more intense and incentives and supposed to be in this stage the Onida offered the customers and the distributors incentives as a pauperization toPromotion on this stage was weak. They nev er give a strong emphasis on the strong qualities of the Candy and its advantages to other CTV that is on its akin product line.Decline Stage As sales decline, the firm has several(prenominal) optionsThey maintain the product rejuvenate it by adding new features to the 20 inches thunder mugdy duet.Discontinue the product, liquidating remaining inventory and selling the remaining items at a low priceUsing the data given in Exhibits I and II the other information given in the case and your depth psychology for question 2, make recommendations as to how Onida develop their targeting, positioning and marketing 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 sober colours that will match the life styles of the Indian people. Those colours that will attract those people who have a buying power. It is also recommended to the comp any to change their target market to those people who have the purchasing power. thither should be a research or survey on what they want and what they need in buying a television set.Marketing MixOnida must guarantee to regain the loyalty and faith 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 hold open the functions of the Candy CTV like the configuration of channels it is also good to comprise other features like messaging or reminder on the CTV, create in games and multi-channelling.b. Price 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. Place In the early stage of the product, a nationwide distribution must be planned outperfectly. There should be a follow-up 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 assure the companys success on this new product. Proper placing of the ads on tv, prints and internet can make a good return of investment.Market Segmentation and objective Market StrategiesWe can segment the Indian consumer market by the adjacentPlace they Lived Urban, rural or suburban people in antithetical location or place they lived have different preferences when buying a CTV, therefore we must learn 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 Class speeding 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 adjust our marketing strategies.Usage rate Nonuser, light user and unplumbed user this segmentation basis can help us also in our marketing strategy. Target 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 decide to who we will concentrate our marketing strategy.BibliographyBrumitt, K., et.al 2001. The Competitive Business Environment. Nelson and Thomas Ltd. UK., Chapter 2 pp. 11.Finch, J.E. 2001. The Essentials of Marketing Principles. seek and Education Association, USA, Chapter 1 p.4.