``The multi-brand strategy that we have been following for the past threeyears has fetched results. While the sales volume of the flagship brandVideocon stands at 80,000, for all brands marketed by the Group puttogether, the number is 1.50 million television sets,'' claims VideoconInternational (VIL) director marketing, N Gupta.

As part of its strategic marketing tie-ups with a host of internationalconsumer durable companies Videocon International has been marketing thetelevision brands Toshiba and Akai, along with the Kenwood range of kitchenappliances and audio systems. Group company Kitchen Appliances Limitedmarkets the Sansui brand of colour televisions.

``Whereas BPL is the market leader so far as the single brand BPL isconcerned, we have a clear edge as a group because of the entire range ofbrands we are currently offering in the market,'' says Gupta.

Spurred by this year's performance the company has set an ambitious targetof selling 2 million colour televisions during CY2000. In an attempt to makea splash the company also plans to launch a corporate campaign in March2000. Titled `The Power of Two', the campaign will focus on the plurality ofbrands being marketed by the company besides the targeted figure of 2million television sets for CY2000.

So far, VIL's multi-branding strategy had been deployed in the televisionmarket alone. This year however the company will take the strategy furtherto the other consumer durables categories such as washing machines andrefrigerators, inform company sources. ``We are looking at multi-brandingother categories such as refrigerators and air conditioners this year. Wewill either tap the existing brands in our portfolio or seek fresh tie-upsto that end,'' informs Gupta.

The `spring flank' model
The company's marketing model -- a spring flank model -- marks Toshiba and Kenwoodas the spearhead brands which, on account of their premium- to mid-pricingpositioning, contend with the likes of Sony and Panasonic. Medium- tolow-priced Sansui flanks the flagship Videocon brand of televisions takingon a range of high- and mid-priced Korean players such as Samsung, LG andDaewoo, and others like BPL, Philips and Onida.

Finally, Akai is marked as the tail head brand at the lower end of themarket, Gupta explains. ``We have been able to use the brands in ourportfolio as tactical weapons to support each other. The fact that we havepegged most of our brands on the value for money platform has helped us alot,'' says Gupta.

Market sources however, receive the company's claims with a fair deal ofcynicism. ``The numbers are clearly exaggerated. Akai and Toshiba's marketshare have eroded considerably. Sansui is the only brand in the stable whichhas garnered some volumes in the market. The company has also had to phaseout Kenwood televisions,'' says an executive from a rival consumer durablecompany on condition of anonymity. Indeed the reported sales volume of 1.50million TV sets is way below the capacity available at VIL's disposal.

Since last year the company has been in the process of beefing up its CTVcapacities to 2.50 million units in anticipation of increased offtake.

Two, analysts point out that a multi-brand approach requires a clearpositioning strategy for each of the group brands in the market. ``VideoconInternational has not worked on a clear cut positioning for any of itsbrands. Almost all are positioned in the medium to low end of the market,''says an analyst, who claims that most of VIL's brands have eaten into eachother's shares.

It also takes deep pockets to establish a basket of names simultaneously inthe market. ``Establishing a brand in the market is an expensive propositiontaking over 10 per cent to 11 per cent of the sales turnover from a brandannually. Given the fact that margins are almost always under pressure in ahighly competitive market such as India, trying to support many brands atthe same time is tough,'' says the spokesperson of a consumer electronicscompany.

Even as Videocon cites the example of successful multi-brand players likePhilips International and Thomson, sources point out that Philipsinternationally is moving towards a single-brand strategy. In the US marketfor instance, the flagship Philips brand will act as the hybrid brand in thetime to come. Magna Vox, the other brand in the company's portfolio will beintegrated under the Philips name, inform sources at Philips IndiaLimited.

Finally, further discounting the credibility of the claims in their lack ofvalidation. With Videocon and a leading market research firm locked inbattle, says an analyst, ``VIL's claims can only be taken with a pinch ofsalt in the absence of commonly accepted market audit figures.'' For now,though, Videocon's numbers do have a tale to tell -- it's just that theconclusion is not clear.