Marketing Principles: The Onida Candy Case Study

This is composed of two types of factors those that the go with shtup non control the external factors and those the caller-out has control the internal factors (Finch,2001, p.4) The problem with Onida was they werent equal to(p) to understand the impact of the uncontroll adequate factors and they dont hire an effective management of the of the controll fitting factors.Macroenvironmental FactorsOnidas dejectiondy was a touch on in Mumbai, Calcutta, Punjab, Tamil Nadu and Karnataka for on its first year. But Onida was not able to study further the consumer merchandise and the poseing behaviour. If only they stomach analyze what is the evaluation and perception of the good deal regarding candy they may fork out not problem at all.Onidas should ready considered the scotch conditions of the people. sugarcoats value was a little bit gameyer compargond to its competitors. If only they have lowered the price of the ware, they might get the attention market.The overcr owded CTV market has Japanese shops like Sony, National Panasonic and Toshiba Korean brands like Samsung and LG the big two Indian brands BPL and Videocon were just some of the competitors of Onida in the CTV market. Like Onida all of the competitors are up to(p) of superior technology. They have compete with their prices especially on the nearly price sensitive segment of the idiot boxs-the 14-inch CTV. BPL KWR , LG d70 and Samsung 3302 and 3379 fell in the price range of Rs 7,000 to Rs 10, 000.Onidas glaze over was Rs 2000 higher(prenominal)er than BPLs 14-inch set and Rs 3000 much that Aiwas 14-inch tv. The company source felt it was just the right price for Onida Candy. They forgot to consider the economic situation of the people and its buying power. An another(prenominal) thing they werent able to understand was the impact of the social and cultural factors. The CTV consumer markets were very conservative and having jazzy coloured cases for televisions just gave them more problems. The lower and middle class like television with sober work as a reflection of their lives.Microenvironmental FactorsThe suppliers for Onida is not a problem because they were producing their own CTV sets. The problems arise in the selling intermediaries and the hind end market.Onida must have given up seminars to dealers and salesperson on how to market their harvest-feast properly because this people were used in interchange television cased in black, grey and other dull influence it is hard for them to pick out Candys bright hues. On the seminar they could have explained why those colours were chosen and convince them that this hues exit be a hit to the people.The target market of Onida was another problem we agnise that they sincerely wishing this television for the youth and teens. But this people dont have money. Maybe they want to own this hip and cool television set. But they dont have a cash of Rs 9,900 to buy this kind of mathematical yield. T hey might convince their parents to buy small stuffs for them exactly 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 note those head of the family(which most of the case has the buying power) would want a television set that leave alone turn back the whole familys need and match their lifestyles. Candy, therefore is not the right intersection for them.The Competitive Environment intimately businesses ope regularises on the market and needs 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 soothe 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 pricing of the product. Those were the first things most people consider when buying things. Quality, specifications, features and functions of the products were just secondary.Analyse Onidas approach to segmentation and targeting the Candy range and evaluate the effectiveness of their marketing mix strategies to position the Candy appropriately.The purpose for segmenting a market is to allow the marketing/sales design to focus on the subset of prospects that are most likely to purchase the offering. In the case of Onida Candy, they focused sharply on young people. It was targeting people surrounded by the ages 12 to 25. They did this because base on the research this age pigeonholing is feel for personalized product. As a result they configured Candy will meet this need. They forgot to consider the buying power of this age mathematical aggroup. This age group is clam up 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 mansion buying a television is a major decisi on, 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 choice 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 treat timing of Candy. It was Onidas research on the need of the market to stand in 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 buyers were looking for coloured once, but ofcourse they were still consid ering the prices of the CTV that will replace their black and white.Onida also forgot to pursue the mood to the market that their television set is the best choice as stick on tv set for the family (since they fixed 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 rigorously a mere reflection of the market trend. Depending the company on market trend is very dangerous 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 neer know if it will go up again.The Product Life Cycle entry decimal point In the introduction correspond, the Onida seeks to build product awareness and get down a market for the product. The impact on the marketing mix is as followsProduct they named the product Candy, It came in four colours, Berry Blue, Mint Green, lemon tree Yellow, 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 puddle Onida brand appealing to the youth. They also use the Cricket Cup to reestablish the brand.Growth Stage In the growth stage, the firm seeks to build brand preference and increase market share.In this stage Onidas product quality is maintained and additional 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 Black Currant, Raisin Cream, Berry Delite and Double Mint in a 14 inch version. They also had a Candy match 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 distribution of the Candy brand.Promotion of the product is still concentrated on its target market the young people.Maturity Stage At maturity, the fast(a) growth in sales diminishes. Competition may appear with similar products. The primary objective at this point is to argue market share while maximizing profit.Product features may be enhanced to differentiate the product from that of competitors. This was done by Onida through establish the dual TV cabinetsOn this stage, in order to be militant to the market Onida supposedly lowered its price to compete to other TV suppliers. But they were firm to remain their price at Rs 9,990 for their 14 inches and Rs 12, 990 for their 20 inches TV.Distribution becomes more intensive and incentives and supposed to be in this stage the Onida offered the customers and the distributors incentives as a motivation toPromotion on this stage was weak. T hey never give a strong emphasis on the strong qualities of the Candy and its advantages to other CTV that is on its same product line.Decline Stage As sales decline, the firm has several optionsThey maintain the product rejuvenate it by adding revolutionary features to the 20 inches candy duet.Discontinue the product, liquidating remaining inventory and merchandising the remaining items at a low priceUsing the data given in Exhibits I and II the other information given in the case and your analysis for question 2, make recommendations as to how Onida make grow their targeting, positioning and marketing mixThe Onida Candy CTV must be give up because it will just brought more losses to the company. The Onida should launch a upstart brand of television that has the functions of Candy but with a new name. much 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 buy power. There should be a research or survey on what they want and what they need in buying a television set. selling MixOnida must attempt to regain the loyalty and faith of the customers to their product. They should transmigrate 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 retain the functions of the Candy CTV like the configuration of channels it is also good to incorporate other features like messaging or reminder on the CTV, built 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 protrudened 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. good placing of the ads on tv, prints and internet can make a good increase of investment. food market Segmentation and Target Market StrategiesWe can segment the Indian consumer market by the followingPlace they Lived Urban, rural or suburban people in different 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 t hen the prospective buyer will not buy because of practicality reasons. favorable Class Upper 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 heavy 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 doubting Thomas Ltd. UK., Chapter 2 pp. 11.Finch, J.E. 2001. The Essentials of Marketing Principles. Research and Education Association, USA, Chapter 1 p.4.