Mumbai, Apr 28: Last fortnight, Onida executive vice-president G Sundar invited his top-line dealers to Mumbai. Up for discussion: how to connect the Onida brand with the youth through the launch of its new product, the 14-inch Candy. ``We are using the World Cup as a vehicle to rejuvenate the brand,'' Sundar told the 80-odd dealers.Sundar is marketing the Candy more aggressively than his other products. He has lined up hoardings on the prime locations in Mumbai. Next up: a national launch before the World Cup. ``We are spending Rs 3 crore in the current launch. Candy will comprise 15 per cent of our ad spend for the year,'' Sundar said.
Why so much emphasis on the 14-inch segment which accounts for a meagre 15 per cent of the total TV market? Though Onida's market share has gone up from 9.5 per cent in 1997-98 to 11.7 per cent this February, almost 45 per cent of the sales has come from the 21-inch segment. Now, Onida wants to increase its market share across all categories. Admits Sundar, ``We areknown as a 21-inch company. Our task is to rejuvenate the brand in all the segments.''
Sundar has put his faith on the World Cup to push the ``cute, funky, nifty, little product.'' Available in four colours at Rs 9,990 (MRP), Candy comes with a free cordless headphone. The reason? ``You can listen to the cricket commentary on the TV without disturbing anyone at home. It is an ideal product launch before the World Cup,'' Sundar said.
The faith has paid. Onida has sold almost 4,000 Candy sets in the first month of its launch in Mumbai. Sundar says dealers in Calcutta, Punjab, Tamil Nadu and Karnataka have shown encouraging response. ``We expect each of these markets to take in 2,000-3,000 sets per month.''
Onida is particularly eyeing the upgradation market from black and white sets to colour television. This, industry sources say, accounts for 45 per cent of the CTV market. Onida has positioned Candy and the Igo series (in the mid-segment) to tap this market. A research done by the company last yearshows that 60 per cent of the TV repurchase is done by the 24-to-35-year-olds. Candy, Sundar says, is ideally placed to tap this age group.
But Candy is designed to play a bigger role than the revenue that it generates. Onida's aim: to create a new category, a colourful brand for the young and the young at heart. ``We are creating a sub-brand. In this segment, we want to catch the youth,'' said Sundar.
How does it work? In a variety of ways. Onida plans to gradually bring variants of the product: video games, calculators built into the TV and possibly Internet facilities. The company is contemplating wall or ceiling mounting and customised colour designing. ``If successful, the Candy variety will be used for the large screen TVs. We will use the sub-brand to tickle the taste buds of the youth,'' said Sundar.
Onida's challenge this year is to get its brand positioning clear. Though the sales improved last year due to the entry into the mid-segment through the techno-value series, the consumer electronicscompany has yet to regain its premium image. Admits Sundar, ``We are not seen as a vibrant, premium brand. We are correcting that this year.''
How? Onida has recently launched a new range of products under the Unique Collection in the premium segment. And Candy, with its trendy designs and colourful packaging, could shed Onida's middle-aged image.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.