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Monday, June 21, 1999

Baron heaves a sigh of relief on Aiwa scheme 

Anamika Rath  
Mumbai, June 20: Perhaps, the only Indian who can draw some comfort from India not winning the World Cup '99 is Kabir Mulchandani, managing director of Baron International Limited. Remember his grand promises under the `Hum Honge Kaamyaab' promotion, which was designed to draw the World Cup CTV consumer to Aiwa products?

Under the scheme, which started on March 31, 1999, Mulchandani promised consumers who bought an Aiwa product a cheque of Rs 6,000 if India won the World Cup. If India reached the semi-final, the gift cheque per Aiwa customer was to be Rs 2,000. The offer was on the purchase of the 14-inch, 20-inch and 21-inch CTVs, three hi-fi ACD models, two portable CD audio systems and three headphone stereo systems and three hi-fi VCD models.

Positioning itself strongly as the Indian cricket team's cheerleader, Aiwa also offered the entire Indian cricket team a glittering prize of an E-220 Mercedes Benz each -- if they brought home the Cup. Mulchandi has certainly been `Kaamyaab'. With the Indianteam obligingly bowing out at the Super Six stage, he is saved from doling out gift cheques and Mercs. At the same time, he successfully managed to get the Aiwa shout heard, in a noisy World Cup marketplace.

In May 1999 alone, Aiwa claims to have sold 75,000 CTVs and 14,000 audio sets. ``The World Cup promos have helped in increasing the basic sales,'' says Mulchandani. He adds hurriedly: ``But there is definitely a sense of disappointment that India could not bring the World Cup.''

Well, yes. The Aiwa promotion might not have won India the cup, but it did create consumer pull. On an average, while Aiwa sold 35,000 CTVs in March and 45,000 in April, there was a remarkable jump in May 1999 with sales jumping to 75,000, says Mulchandani.

The sales continue to rise with the company claiming sales of 20,000 CTVs in the first 10 days of June 1999. Aiwa claims to have increased its market share from 10 per cent in March before the contest to 15 per cent after the contest -- the ORG-GFK figures however putAiwa's marketshare at 5.8 per cent for the month of April 1999. For the Rs 875-crore Baron International, Aiwa accounts for 85 per cent of the turnover. The company hopes to make it Rs 900 crore this financial year. Especially, as now it does not have to pay back consumers a large sum to celebrate India's World Cup win.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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