• NOVEMBER 4, 1999

Mirc set to leverage ‘Onida’ globally

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.

Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

Equitymaster Agora Research Private Limited (Research Analyst)
103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407