Will The Onida Sting Work For ACs

Mumbai: | Updated: Jan 22 2003, 05:30am hrs
In a strategic move, the Rs 750-crore Mirc Electronics Ltd is planning to foray into the air conditioner (AC) segment in March 2003. To start with, the company plans to roll out nine new products under the brand name Onida across the nation. In order to promote the new AC range, the company plans to form a strong distribution network which includes 2,000 dealers, informs Mirc Electronics Ltd vice-president (sales and marketing) V Chandramouli.

The company is also planning to accelerate its presence in the washing machines segment nationally by following a similar marketing route. The company plans to leverage the strength of the Onida brand to other products.

With the move, we hope to sell 50,000 units of ACs from March 2003 onwards and one lakh units of washing machines within a year. For the purpose, we have already started sourcing readymade ACs from a number of other local AC manufacturers based on our orders, whereas the washing machines range is being currently sourced from another company called Onida Savak, he adds.

Mirc is currently focusing on consolidating its position in the CTV segment and its market share in CTVs has increased from 8.6 per cent in June 2001 to 12 per cent in November 2002. With this consolidation, Mirc is venturing into new product areas.

We plan to invest around Rs 12 crore to Rs 15 crore for marketing our entire range of ACs and washing machines in 2003-04. In addition, we also hope the new marketing moves to contribute an additional Rs 135 crore to our overall sales turnover within a year, he adds.

As part of its marketing strategy, the company plans to launch a slew of consumer promotions which will include leveraging the strength of its CTVs, ACs and washing machines by offering one product along with the other. This will help us trigger more consumer purchase and spur volumes of our new product range within a specific set-up target, he says.

The company is also planning to implement a new direct mailers concept as part of its new customer relationship management (CRM) initiative for promoting its entire range of products soon. This will enable us to develop a better relationship with customers as we will be able to get in direct connectivity with them, explains Mr Chandramouli.

On Mircs new marketing gameplan, comments Strat Caps Securities Pvt Ltd research analyst Prashant Mulay: Currently, the AC market is already overcrowded with the presence of many national and international players. In this scenario, it remains to be seen whether Mircs plans bear fruits.