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Monday, June 21, 1999

The good and bad news? Onida sold 21-inch CTVs 

Chandan Dubey  
Mumbai, June 20: For a company planning to shrug off its image as a `21-inch company' and broadbase its sales, through World Cup '99, the cricket season has brought mixed fortunes for MIRC Electronics. On the up side: its 21-inch sales have shown robust growth during the World Cup. On the down side: its 21-inch sales have shown a robust growth.

The 14-inch Candy, which was to be rejuvenated through the World Cup -- with a Rs 3 crore launch--and was targetted at youth, still has to mature. Instead, MIRC Electronics is now scrambling to work on its upper-end products in the next few months.

On a more positive note, the last cricketing mega event of the century has served as a comfortable come-back vehicle for the company's flagship brand Onida. A recent ORG survey cites Onida's market share at 11 per cent for April 1999, up from the nine per cent level in the corresponding period last year.

However, the company claims an even higher market share of 13 per cent for April 1999. ``The ORG survey does notcover the complete distribution universe for Onida and hence is not representative of the authentic picture,'' explains Onida's executive vice-president G Sundar.

The one-time CTV market leader's fortunes had been on the downslide ever since the mid-90s. Analysts ascribe most of Onida's recent success to the fresh communication initiatives and the series of new products launched in the first quarter of calender 1999.

The Rs 8.75 crore spent by the company on World Cup promotions seem to have paid off if the number of televisions sold during April and May 1999 are any indication. Fresh from the funeral of its long time brand ambassador, the Onida Devil, the company has managed to sell close to 50,000 sets during April and another 65,000 in May this year.

As part of its World Cup consumer promotion scheme--in which the company had promised to give out one television set free to every 100th consumer -- the company has given out close to 1,150 televisions free between April and May this year.

``The WorldCup has provided us with an ideal platform for launching a range of products including Web Cruiser, a television model with Internet facility and Candy a 14-inch model targeted at the youth,'' says Sundar. However, the company has managed to sell only 500 Web Cruisers and 2,000 Candys in the past two months.

In contrast, it is the 21-inch segment which has seen the maximum growth for Onida during the World Cup. ``Over 45 per cent of our sales in the past few months have come from the 21-inch segment,'' admits Sundar. Onida's 21-inch model, the 21 IQ4 dubbed the `Catch of the World Cup,' in the print and outdoor releases by the company, has been the centre of the company's ad strategy for the past few months.

But clearly, Onida is still not content with its reputation of being the `21-inch company': now it is setting its sight at the higher-end. For the marketing department at Onida, the question of a breather after the hectic World Cup season does not arise: the impending relaunch of the upper-endAudioport and the KY Series is already in the offing.

The company is also planning to introduce a two-tuner `picture-in-picture' facility in the 25-inch CTVs. Currently this facility is available in the 29-inch and 34-inch CTVs only. The company also plans to extend this facility to the 21-inch segment before the festive season this year. Which could, once again, make the 21-inch more popular. Ouch!

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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