According to reports in a leading financial daily, Mirc Electronics, has earmarked a Rs 6 bn investment plan to make its flagship brand ‘Onida’ a household name globally.
Mirc is one of the major players in India’s television market. Its brand ‘Onida’ commands 11% of the total colour television market (which is growing at a scorching pace of 40-50% annually). The company is known for its marketing and brand building strengths and has an ongoing technical tie-up with Japanese electronics major JVC.
As a precursor to the brand building exercise, Mirc has hired Andersen Consulting to find ways of cutting costs and optimising resources. It plans to increase ad spend to give its brand more visibility.
Traditionally, Onida has always been projected as a premium brand. The company wants to extend this perception while marketing the brand. As such, the move to gradually build ‘Onida’ as a global brand makes sense. For one, it will justify its premium positioning. Secondly, it will give it access to a wider market, spreading its risk profile.
Though gaining foothold on the global scene will not be easy, the strategy Mirc is planning to adopt may work, as it is planning a gradual brand building exercise spread over five years. It isn’t planning a spate of television commercials to quickly promote the brand. Secondly, the company is looking at Internet as a selling point. The strategy has been a major success in the US leading to a direct customer-manufacturer interface and hence, a greater degree of customisation.
All in all a positive move. How it unfolds, only time will tell.
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