Comparison between Onida and Videocon [Consumer Durables Space]

Onida

Onida is the consumer durables brand from the stable of Mirc Electronics. Mirc, which started selling
television over two decades back, has diversified into other household appliances such as washing
machines and microwave ovens to expand its revenue base, but TV sets still account for half its
revenues.

Onida can instantly be identified with its unique mascot—the green devil with horns, long nails and
spiky tail slithering across television screens which was launched in early 1980s. At the time, Onida
was a poor man’s Sony, and even BPL and Videocon were ahead. Onida figured that people might
buy TVs as a status symbol, to keep up with their neighbours; thus the pithy tagline, “Neighbour’s
envy, owner’s pride”.

It is estimated that the devil single-handedly pumped Onida’s market share in televisions up from
5-6% in 1981 to 19-20% at the campaign’s peak—which came just before 1995, when it won the
Abby Campaign of the Year award.

The devil turned out to be an angel in disguise—his mischievous message stood the brand in good
stead in times that saw many of its rivals capitulate under market pressure. The strong brand
identification helped Onida survive the liberalisation wave that brought Korean heavy weights like
LG and Samsung to the market with aggressive pricing and distribution strategies.

The wave of liberalisation though, ironically, claimed the Devil as its victim as it was perceived that
envy was no longer an emotion attached to owning a TV. Non Devil ads were launched in 1998
which ran until 2004 when they were pulled off air because of ineffectiveness. The devil was
launched again, though this time in the form of a sweet devil.

Aiding the downfall was the fact that in May 1999, Onida came out with a unique product: a 14 inch
CTV set nicknamed Candy. This started well but eventually tapered off in 2001. This was attributed
to wrong product positioning, and poor product differentiation.

According to a study in September 2007 by TNS Mode, more than 78% of those in the survey
sample could recall the devil, and connect it with the Onida brand.

But even the revamped launch of the devil failed to pick pace and it was re-dumped only for a
completely new positioning for Onida to take place in 2009.

The new campaign by McCann Erickson India features a young couple whose lives are enhanced by
Onida products, and carries the tag line: Tumko dekha toh yeh design aaya.

Through its new brand campaigns, the company is targeting the new age first time householders
and also put more visibility to non TV products so as to project itself as a complete solution provider
in the consumer durables space.
Videocon

Videocon Industries is a major player in the consumer durable goods industry.

It adopts a multi-branding strategy for a vast variety of products. Videocon Group brands include
Akai, Electrolux, Hyundai, Kelvinator, Kenstar, Kenwood, Next, PlanetM, Sansui, Toshibha, Philips
(TV Products) etc. Strategic tie-ups with the likes of Sansui, Akai, Toshiba, Philips etc brought in the
integration capabilities of Videocon into play and helped them garner business. Videocon was
compelled to do this because the market opened up. Once all the foreign brands came in, the
challenge was either to sustain or get wiped off. The multi branding technology paid off as Videocon
managed to hold on to a combined market share in comparison to LG and Samsung.

It also brought in the whole concept of sub-branding with Videocon as the main brand and sub
brands like Bazooka, Challenger etc and that gave it tremendous success in upping its market share
in the face of stiff competition

Videocon integrated backwards by getting into manufacture of components such as electron guns,
metal parts and deflection yokes for CTVs and compressors, and electric motors and plastic
components for households appliances such as washing machines, refrigerators and Air
conditioners. The group integrated further to get into manufacture of glass panels and funnels, the
key components for the manufacture of color picture tubes. thereby lending it unique synergy in the
global CTV business from glass to CRT (Cathode Ray tubes) to CTVs. - (From Sand to CTV).
Together with other components for households appliances. This high degree of backward
integration bestows upon the company a unique benefit over competition.

As a standalone brand, Videocon underwent a major makeover itself and has shed its solid steel 'V'
for a more fluid, lava like 'V', coupled with a new proposition – 'Experience change'. The brand,
which has been in existence for more than two decades, has managed a fair share in the
entry/middle product segment. It is perceived as a brand for the Indian middle class -- no frills, no
glamour, simple, reliable and hassle-free. This rebranding exercise is being read as cues of
Videocon making forays into the premium segment.

Prior to this, the brand has banked on other propositions, such as 'Technology for health and
pleasure', 'Bring Home the Leader', 'New Improved Life', 'The Indian
Multinational' , 'Whatever role life gives you, play it big', as well as the most recent one, 'Eco Logic
for sustainable life'. The key features of the new positioning are that it is fresh and relevant, well
launched and vibrant.