Marketing Principles

Marketing Principles : The Onida Candy Case Study

When Candy was launched in 1999 , it was an instant success but after 2 years , Candy 's sales declined drastically . With reference to the marketing and competitive environment , discuss the reasons for this decline in sales

The Marketing Environment

This is composed of two types of factors : those that the company cannot control - the external factors and those the company has control - the internal factors (Finch ,2001 ,

.4 ) The problem with Onida was they weren 't able to understand the impact of the

uncontrollable factors and they don 't have an effective management of the of the controllable factors

Macroenvironmental Factors

Onida 's Candy was a hit in Mumbai , Calcutta , Punjab , Tamil Nadu and Karnataka for on its first year . But Onida was not able to study further the consumer market and the buying behaviour . If only they have studied what is the evaluation and perception of the people regarding candy they may have not problem at all

Onida 's should have considered the economic conditions of the people Candy 's price was a little bit higher compared to its competitors . If only they have lowered the price of the product , they might get the attention market

The overcrowded CTV market has Japanese brands 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 capable of superior technology . They have compete with their prices especially on the most price sensitive segment of the televisions-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 . Onida 's Candy was Rs 2000 higher than BPL 's 14-inch set and Rs 3000 more that Aiwa 's 14-inch television . 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 . Another thing they weren 't able to understand was the impact of the social and cultural factors . The CTV consumer markets were very conservative and having loud coloured cases for televisions just gave them more problems . The lower and middle class television with sober colours as a reflection of their lives

Microenvironmental Factors

The suppliers for Onida is not a problem because they were producing their own CTV sets . The problems arise in the marketing intermediaries and the target market

Onida must have given seminars to dealer 's and salesperson on how to market their product properly because this people were used in selling television cased in black , grey and other dull colours it is hard for them to accept Candy 's bright hues . On the seminar they could have explained why those colours were chosen and convince them that this hues will be a hit to the people

The target market of Onida was another...