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“A Study on Consumers preference towards Onida”

Dayananda Sagar College Of Engineering Page 1

1. Industry Profile

Durable goods are those which don‟t wear out quickly, yielding utility over time rather

than at once. Consumer durables are goods that do not quickly wear out or that provide utility

over a period of time and are used for personal consumption. The Consumer Durables

industry consists of durable goods and appliances for domestic use such as televisions,

refrigerators, air conditioners and washing machines. Instruments such as cell phones and

kitchen appliances like microwave ovens are also included in this category.

The consumer durables industry can be broadly classified into two segments: Consumer

Electronics and Consumer Appliances. Consumer Appliances can be further categorized into

Brown Goods and White Goods. Examples of consumer durable goods include electronic

equipment, home furnishings and fixtures, photographic equipment, leisure equipment and

kitchen appliances.

They can be classified as white goods, such as refrigerators, washing machines

microwaves, air conditioners or brown goods or consumer electronics such as televisions and

DVD players. Such big-ticket items typically continue to be serviceable for three years at

least and are characterized by long inter-purchase times.

This sector has been witnessing significant growth in recent years, helped by several

drivers such as the emerging retail boom, real estate and housing demand, greater disposable

income and an overall increase in the level of affluence of a significant section of the

population. The industry is represented by major international and local players such as

Samsung, LG, Sony, MIRC Electronics, Philips, Panasonic, Videocon, Whirlpool, etc. This

makes it an extremely competitive industry.

These goods that were once considered as a luxury are a necessity in the present era.

They are considered as a mark of facilitation which can make life easier and comfortable. The

present consumer durables industry is focussed on providing its potential customers with high

quality products, better features and at prices that help maximize value to these customers.

The expectations of the present day customer are extremely high and they are well

aware of the options available to them. They opt for the best of their options and have sources

like the internet which present them with complete information. This leads to the requirement





for the firms in this industry to provide the customers with complete information and also

provide them with details on the technologies used and thus differentiate their products from

those of their competitors.

The major threats to the local industry in the future are supply-related issues pertaining

to distribution and infrastructure, as well as demand issues caused due to competition from

imported goods. The lack of well developed distribution networks makes it especially

challenging to penetrate the fastest growing rural areas economically. In addition, regular

power cuts and poor road linkages make systematic production, assembly and delivery

problematic. On the demand side, customers have increasing choices from both domestically

produced and imported goods, with similar features. This homogeneity makes it difficult for

players to remain ahead of the competition.

MNCs hold an edge over their Indian counterparts in terms of superior technology

being combined with a steady flow of capital, while domestic companies compete on the

basis of their well-acknowledged brands, an extensive distribution network and an insight in

local market conditions. The largest MNCs incorporated in India are LG India, Samsung

India and Sony India and home grown brands are Videocon, Godrej Industries and IFB.

Overall, the industry‟s future remains robust, and interested applicants will benefit from

a holistic learning experience. Many of the research, sales, marketing and advertising related

roles will necessitate a good on-the-job learning of target audiences, who may be a totally

new segment, based on never-before visited Class II and III towns. In addition, those with

technical backgrounds will be able to leverage their knowledge and experience to constantly

develop and innovate the product variants. With more MNCs growing their Indian

businesses, there is great potential to also learn best-in-class systems and management skills.

1.1 Industry Size, Growth, Trends

In the past 10 years, the global market has witnessed a surge in demand as economies

such as Brazil, Mexico, India and China have opened up and begun rapid development,

welcoming globalization as it brings progress with it. The consumer durables industry has

always exhibited impressive growth despite strong competition and constant price cutting,

and the first contraction since the 2001 dot-com bust has been due to the global recession.





Given the strong correlation between demand for durables (both new and replacements)

and income, the industry naturally suffered during the 2008-2009 period. However,

projections for current year going forward are very optimistic, as consumers resume

spending, and producers launch new enticing variants to grab new customers. Leading

players include Sony, Samsung, LG and Panasonic.

The consumer durables Industry in developing countries such as India and China have

largely been shielded from the backlash of the recession, as consumers continued to buy basic

appliances. In fact, China has been ranked the second-biggest market in the world for

consumer electronics. Despite the recession, their strong domestic economy and growing

high-income population have buoyed demand leading to aggressive market growth.

There is growing interest for new age products such as LCD-TVs and DVD players.

Meanwhile, the penetration of the basic, largest dollar items such as ovens, washing machines

and refrigerators is also increasing. India too, has witnessed a similar phenomenon, with the

urban consumer durables market growing at almost 10 % p.a., and the rural durables market

growing at 25% p.a. Some high-growth categories within this segment include mobile

phones, TVs and music systems.

The Indian consumer durables industry has witnessed a considerable change in the past

couple of years. Changing lifestyle, higher disposable income coupled with greater

affordability and a surge in advertising has been instrumental in bringing about a sea change

in the consumer behaviour pattern. Apart from steady income gains, consumer financing and

hire-purchase schemes have become a major driver in the consumer durables industry.

In the case of more expensive consumer goods, such as refrigerators, washing

machines, colour televisions and personal computers, retailers are joining forces with banks

and finance companies to market their goods more aggressively. In addition, change in

policy, such as the Free Trade Agreement in 2005 resulted in zero customs duty on imports of

all telecom equipment, thereby improving the pricing and affordability of imported goods.

The consumer durables market in India was estimated to be around US$ 5.5 billion in

2009-10. More than 7 million units of consumer durable appliances have been sold in the

year 2009-10 with colour televisions (CTV) forming the bulk of the sales with 30 per cent





share of volumes. CTV, refrigerators and Air-conditioners together constitute more than 60

per cent of the sales in terms of the number of units sold. In the refrigerators market, the

frost-free category has grown by 8.3 per cent while direct cool segment has grown by 9 per

cent. Companies like LG, Whirlpool and Samsung have registered double-digit growth in the

direct cool refrigerator market.

In the case of washing machines, the semi-automatic category with a higher base and

fully-automatic categories have grown by 4 per cent to 526,000 units and by 8 per cent to

229,000 units, respectively. In the air-conditioners segment, the sales of window ACs have

grown by 32 per cent and that of split ACs by 97 per cent.

Since the penetration in the urban areas for these products is already quite high, the

markets for both C-TV and refrigerators were shifting to the semi-urban and rural areas. The

growth across product categories in different segments is assessed in the following sections.

The CTV production was 15.10 million units in 2009-10 and is expected to grow by at

least 25 per cent. At the disaggregated level, conventional CTV volumes have been falling

while flat TVs have grown strongly. Market sources indicate that most CTV majors have

phased out conventional TVs and have instead been focusing more on flat TVs.

The flat segment of CTVs now accounts for over 60 per cent of the total domestic TV

production and is likely to be around 65 per cent in 2009-10. High-end products such as

liquid crystal display (LCD) and plasma display CTV grew by 400 per cent and 150 per Cent

respectively in 2009 – 10 following a sharp decline in prices of these products and this trend is

expected to continue.

The audio/video player market has seen significant growth rates in the domestic market

as prices have dropped. This trend is expected to continue through 2010- 2011, as

competition is likely to intensify to scale and capture the mass market.

In this way, the electronic consumer durables industry is an extremely important

industry for India as well as several other developing nations as it helps them earn and

generate revenue in the form of a contribution to the Gross Domestic Product (GDP) of the

nation.





2. Company Profile

2.1 Background and Inception of the Company

MIRC Electronics incorporated in 1981 is engaged in manufacturing and marketing of

LCD TV, DVD and home theatres, air conditioner, washing machine, mobile phone,

microwave oven and projectors and display products. The company was founded by

Mr.G.L.Mirchandani and Mr.VijayMansukhani. Company markets its products under the

brand name „ONIDA‟.

2.1.1 How it all began

Onida was started by Mr.G.L.Mirchandani and Mr.VijayMirchandani in 1981 in

Mumbai. In 1982 Onida started assembling television sets at their own factory in Andheri,

Mumbai. Superior products and the combination of a distinctive voice, a cutting-edge

advertising strategy, and purposeful marketing ensure that Onida becomes a household name.

Over the years, Onida has strengthened its reputation for its intelligent and pioneering

applications of technologies.

2.1.2 Onida Today

Onida today enjoys a strong equity among consumers making it one of the leading

brands in India. Their constant endeavour to introduce products of substance that offer the

very best in technology and the finest design have made Onida a leading player in the

electronics and entertainment business today.

Onida has also made a foray in other household appliances including air-conditioners,

washing machines, DVD players; LCD‟s and LED televisions, home theatre systems and

mobile phones. For offices, Onida has also introduced state-of-art multimedia presentation

products. All of these indicate the efforts of Onida for keeping up with the recent times.

2.2 Nature of the Business carried

Manufacturer, Exporter and Retailers are some of the most popular and significant

elements in the supply chain as well as the value chain in the retail business. Onida is a

manufacturer, exporter as well as a whole-seller which makes it excessively important for





Onida to ensure efficiency and effectiveness in each of these activities in order to remain

competitive and profitable in the Indian as well as the international market.

2.3 Vision, Mission and quality policy

Vision

To build a brand around substance. To communicate simple truths that customers

understand. To become a leader in our chosen field and become a globally recognized,

prestigious company through synergistic businesses investment, differentiation through

innovation, passion through empowerment, cost through economies of scale and world class

systems and procedures that bring in a sense of delight to our stakeholders.

Mission

To benefit society at large through Innovation, Quality, Productivity, Human

Development and Growth, and to generate sustained surpluses, always striving for

excellence, within the framework of law and in nothing but the truth in which we base our

every action.

Quality Policy

The company is committed to quality and strives for a continuous improvement through

innovation and human development to give the customer better value for money always.

All quality norms followed are constantly upgraded taking into account changing

customer needs.

The TQM movement being practiced has enabled process innovations. Due emphasis is

given to prevention driven activities through feedback obtained from all over. Product

reliability tests are performed with total compliance to international quality assurance

standards. All the above processes have lowered the quality problems and helped improve

customer satisfaction.

Quality Assurance

Superior quality is the cornerstone of every Onida product. Our rigorous practices and

procedures aim at maintaining the highest quality standards at all times. We believe that a





satisfied customer is one who takes pride in ownership of our products and always

recommends Onida.

2.4 Products Profile

1. LED Televisions

2. LCD Televisions

3. Colour Televisions

4. DVD Players

5. Air Conditioners

6. Washing Machines

7. Microwave Ovens

8. Mobile Phones

9. Projectors and display products

Onida‟s range of LED TV does begin from the 22” model and go up to the 40” variant.

All of their LED TV‟s are designed with Full High Definition capability. They have designed

the LED TV‟s with the unique ICare Technology so that the TV viewing is pleasurable.





Onida offers a wide range of LCD TV from 22” to 42” with distinct features. Most of

their LCD TV‟s are designed with Full High Definition capability to ensure brilliant picture

clarity. Onida has different models of LCD TV‟s based on user requirement. Thus they have

the PLUS Range, the Diamond series, the M series, and the colourful range of Vogue LCD

TV‟s.

Onida has a vast range of Ultra-Slim and flat televisions. The main advantage of Onida

in this category over its competitors is that their Ultra-Slim televisions are equipped with KY

Thunder technology which comes with a woofer base and has the most powerful sound in the

category.





Today‟s day and age requires people to capture video on their camcorders, digital

camera and mobiles. The Onida Atom, a touch screen high-definition multimedia player with

card reader and USB port. It directly plays movies, music and pictures through camcorders,

camera, USB and mobiles.

The Onida 2010 range of Air-Conditioners is designed to provide Instant Cooling in

peak summer when it is needed the most. Onida Air-Conditioners have high energy

efficiency and heavy duty cooling due to its advanced design of large multi bend cooling

coils, highly efficient compressors and high air throw. Only Onida Air-Conditioners have

unique and advanced features like I-cool, Actual savings meter, One touch AC and Fan auto

control, Large Display and bio-sleep with 3 stage control.





India‟s most convenient High front loading fully automatic washing machine: A front

loading washing machine gives the best wash quality but requires bending while washing

clothes. Onida high front loading washing machine has a wider and taller drum for superior

cleaning. Its India‟s slimmest high front loading washing machine.

Be a multi cuisine chef at the touch of a button: Onida Black Beauty Microwave comes

with Indian Auto cook menu which makes cooking so simple that even a husband can

become a multi-cuisine chef at the touch of a button.





Onida brings customers the range of fully loaded mobiles. Every single Onida Mobile

has much more to offer as compared to any ordinary mobile phone. It has so many features

yet it‟s so easy to use. So now customers can enjoy better, work better or simply talk better.

2.5 Areas of Operation

Company‟s manufacturing plant is located at Thane, Noida and Roorkee. Today the

company has network of 33 branch offices, 208 Customer Relation Centre‟s and 41 depots

spread across the country. Company produces single colour television in 12 seconds and has

manufacturing capacity of 1.2 million sets in a year.

The company also has sales and marketing office in Dubai. MIRC Electronics exports

its products to Uganda, Tanzania, Kenya and Ethiopia and SAARC countries. Company are

marketed in big hypermarkets like Lu Lu Centres, Carrefours, Geants and Dasmans in GCC

countries. MIRC Electronics shares are listed on the National Stock Exchanges and Bombay

Stock Exchanges.

MIRC Electronics has a wide coverage in 450 cities and towns through 33 branch

offices and over 3,000 authorized dealers across the country. They also export their products

to the Middle East, SAARC and African countries. They have their Headquarters in Mumbai

(India), with branch offices across India and representative offices in the UAE and China.





2.6 Ownership Pattern

Name of the Company: MIRC ELECTRONICS LIMITED

Scrip Code : (a) BSE: 500279 (b) NSE: MIRCELECTR

Name of Scrip: Mirc Electronics Limited

Class of Securities Equity Shares

Total Non-promoter holding is 44.90 % there are no ADR/GDR issues.

Total Foreign Shareholding is 73,38,438 shares constituting 5.18% of the paid-up

share Capital which includes FII/FFI holding of 67,54,233 shares and NRI holding of

5,84,205 shares. There is no other foreign holding.

There are no Locked -in Shares.

Key executives

S.No Name Designation

1 Gulu L Mirchandani Chairman

2 Gulu L Mirchandani Managing Director

3 Vijay J Mansukhani Managing Director

4 AnoopPillai Company Secretary

5 Manoj Maheshwari Director6 VimalBhandari Director

7 RajanKapur Director





2.7 Competitors Information

Several global players are well established in the consumer durables sector in India, with

competition from strong Indian players.

Some of the key players in the sector in India include:

Samsung

Philips

LG

Whirlpool

Nokia

Sony

In case of Onida, there are several competitors and this makes it extremely tough for

Onida to survive in a market of 45 other players causing a diminished market share and also

causing competitive pressures. In such a situation it becomes extremely important that Onida

considers its branding and positioning strategies in order to form a better position for itself in

the market.

Flat Tv Market Share in India

The above chart shows that the Flat TV market is captured mainly by LG, Samsung and Sony

in India.





Mobile Phones market share in India

The above table shows that the mobile phone market is captured mainly by the Mobile phone

giant Nokia followed by LG and Samsung.

2.8 Infrastructural Facilities

Onida has maintained a very hygienic environment in and around the office. It provides the

various infrastructural facilities as follows:

1. Parking

2. Canteen

3. Recreation Room

4. Health Centre

5. Gallery6. Library

7. Security Office





2.9 Achievements / Awards

1981 : MIRC Electronics Pvt. Ltd. was established

1982 : CTV production started at Nand Bhavan, Mumbai

1983 : Technical collaboration with JVC, Japan for CTV

1985 : Established in-house R&D wing

1986 : Production expanded and moved to a new factory at Kalina

1987 : Moved to our own factory building "ONIDA HOUSE"

: Iwai, Speaker plant commences its operation

1990 : Tuner plant commences operation

1991 : Akasaka, PCB plant commences its operation

: New CTV manufacturing plant at Vasai commences operations

1992 : Crossed 1 million CTV sales

1994 : Moved to a fully automated Plant of 600K CTV per year at Wada

1994 : Moved to a fully automated Plant of 600K CTV per year at Wada

1995 : ISO 9001 certification obtained from BVQI

1998 : Award for excellence in electronics by ministry of IT

1999 : First in India to develop Internet enabled CTV

2000 : Launched the KY Thunder, Profile Series

2001 : AV Max award for best CTV

: Launched Onida Black, flat CTV range

: Multimedia projectors launched

: Commenced project to expand CTV capacity to 1 million





2002 : Completed plant expansion project to increase capacity from 600K CTVs to 1.2

million CTV's per year.

: Launched 'KY Theatre' with circle surround sound, the first complete Home Theatre

package

: Launch of 'Igo'- the economy brand

: Launched VCD player

2003 : Launched world's first LCD remote 'i-Control'

: Launched Air-conditioners

: Launched Rear Projection TV, Plasma TV & DVD Players

: Launched Fully Automatic front loading Washing Machines

: A MIRC product is getting sold every 27 seconds

: Operations started in Russia

2004 : Launch of the 'Oxygen Series' CTV

: Crossed Sale of 250,000 CTV's in October month

: Launch of Microwave Owens

: Mr.Gulu Mirchandani, CMD awarded 'Man of Electronics for the year' by CETMA

2004- 05 : Achieved 1.20 million CTV sales

2005 : Launch of 'POISON' range of CTV's

2009 : ONIDA's Brand relaunch campaign 'Tumko Dekha Toh Yeh Design Aaya' to

communicate its philosophy of thoughtful product features that are designed keeping

customers in mind.

2010 : Launched LED TVs with I-Care Technology

: Foray into LED Lighting category

: Commenced the Consumer Connect Initiative

: Launched IGO LED Torch and Lamps, a product category created to tap the local

market

: Launched 6 Ultraslim models in IGO product range

: Achieved during November, growth of 20% in value as compared to the last year.

(IGO)





: Launched World first ONIDA Speed cool range of AC with Savings meter in INR, 5

Speed Cooling

: Launched I-Cool Range of ACs with large user friendly display & one touch auto

control for AC and ceiling fan.

: Opened over 350 ONIDA Cool Point retail stores selling full range of Onida Air

Conditioners

: Onida Psychometric Test Lab upto 4 Tr capacity inaugurated at Wada Factory

: Onida launches Commercial AC with Variable Refridgement flow and duct type AC

range

: Onida designed its first Commercial AC - Duct Type 8.75 Tr with 410 A refridgerant

(CFC Free)

: Onida ACs become 4th largest selling brand in India with Market Share of over 12%

in split ACs

2011 : Onida launched Pre cool range of Air Conditioners that come with a pre cool device

which automatically switches on as well as switches off the air conditioner on receipt of

a CODE (AC*ON / AC*OFF) via an SMS sent by the consumer from his mobile

phone. It not only allows the consumers to operate the Air Conditioner while on the

move but also cools the room even before they reach home.

2.10 Work Flow Model





Awareness of External factors

The environmental analysis will help the organization in identifying the opportunities

and threats that exist in the environment. An analysis of external factors is extremely

important for Onida to understand the competitive market in the consumer durable

industry and be able to formulate all of its strategies based on the findings of an

analysis and research of the external factors.

- Customer markets: “Markets are not homogeneous. A company cannot connect

with all customers in large, broad, or diverse markets. Consumers vary on many

dimensions and often can be grouped according to one or more characteristics. A

company needs to identify which market segments it can serve effectively, after

taking into consideration consumer behaviour and careful strategic thinking”.

Now, the marketer‟s challenge is to effectively identify the segments and decide

which ones to target. This would prove more effective and efficient when

compared to mass marketing as the company can deliver better directly to the

target. “A market segment consists of a group of customers who share a similar

set of needs and wants”.

- Competitive environment: The main theme of competitive positioning strategy is

to make the product or service different from such already available ones in the

market and carving out a niche for them. The strategy is aimed at making the

customers see what sets your offering different from its peers in the market and

then develop a positive attraction for the same. These strategies are based on the

existing competition in the market. Competitive positioning is the only strategy

that is useful for them.

Regulatory environment: It is possible to make legal services more readily available

forming forums and courts that allow them to gain assistance from government

employed lawyers for free or for minimum or nominal charges. This will help

improve access to legal services and law firms will be employed by the government to

help those businesses that operate with Onida and thus provide a better understanding

in national and international markets.

Strategic policies and practices

Strategic marketing practices refers to the long term marketing practices or marketing

vision and mission adopted by a firm, which remains consistent throughout the different





and campaigns and promotional methods used by the firm and also throughout the

marketing of all the products of the firm. It forms the common marketing objective and

also the common marketing practices that a firm adopts throughout. This include

advertising and promotion, pricing, product and distribution strategies adopted by a firm

form the long term perspective and this forms the branding and positioning of a firm as

well as its products.

Operational policies and practices

The operations of the firm are carried out locally. Decision making strategies can be of

several types. This includes strategy of consensus or majority voting integration of all of the

points by leadership or the process of negotiation. In this case a sales manager needs to focus

on several aspects of the marketing plan in order to ensure that the marketing plan is made

effectively. They can integrate the suggestions on price focus, value addition and branding.

Moreover, they can negotiate with each of these suggestions and this can help bring in

agreement. The problems that arise due to differences in the objectives of the management

and the owners or the shareholders of a company are known as principal-agent problems. It

includes the fact that managers focus on profit maximization, where as shareholders require

wealth maximization.

Functional integration

Management is creative strategies and techniques to solve the organization problems and

accomplish its goals through planning, organizing, leading and controlling. Organizations

that are using these functions will be able to become effective and efficient, as they will be

able to perform effectively by managing the resources efficiently.

Supply chain orientation

Supply chain management focuses on the delivery of components and raw materials from one

place to another in order to provide place utility as well as make it possible to carry out the

operations of distribution and logistics smoothly. A channel system or the supply chain and

distribution system in an organization can provide great amount of competitive advantage as

it leads to cost benefit as well as economies in scale of operations. It can help in reduction of

costs of operations and also leads to reduction in inventory costs. In case of ineffective

management of the supply chain, it can lead to addition of excessive distribution costs and

increase the overheads significantly. Ensuring that the right kind of supply chain. A channel





system will help avoid these inefficiencies and bring in better efficiencies. All of this can help

a firm gain competitive advantage and thus result in a better or stronger market position.

Effectiveness of management process

The co-ordination program on effectiveness of management should contain details on

planning, organizing, leading as well as controlling as well as several of their practical

applications.

a. Planning: Planning refers to the function of pre-deciding and forming an outline or

framework that helps in the process of understanding the resource requirement and its

allocation. Master budgeting is an application of planning.

b. Organizing: Organizing refers to the process of facilitation and ensuring that the

resources are made available. Division of labour is a function of organizing.

c. Leading: Directing and leadership for the purpose of motivating the employees as

well as providing guidance is essential and applicable in all forms of organizations. It

includes forming teams and team leaders.

d. Controlling: Controlling is the function which is used for the purpose of corrections in

deviations from plans. Budgets and then feedbacks are a form of controlling.

2.11 Future Growth and prospects

MIRC Electronics expects to increase its presence in their product portfolio and emerge

as a leading solutions provider for electronic home improvement goods. The Company has

also introduced a high tech world class LCD which is considered the best in the industry.

Onida with its Sales & Marketing office in Dubai reported a 215 percent export growth

in two years, setting the base for an increased robust international presence. The shipments to

the Gulf contribute almost 65 percent of Onida's export revenue while shipments to the fast

growing East African market (Uganda, Tanzania, Kenya and Ethiopia) and the SAARC

Countries accounted for 16 percent of export revenues.

Home Theatres and DVD players have been introduced in these markets to strengthen

the Onida brand presence. These products have customised models with local language user





interfaces in line with its geographies of focus. Onida models are now available with Arabic,

Persian and Russian OSD (menu).

Onida products have been favoured by hypermarkets like Lu Lu Centres, Carrefours,

Geants and Dasmans in GCC countries. In addition to the Gulf countries ONIDA has now a

sizeable presence in Russia, Ukraine and neighbouring CIS countries. ONIDA has already

crossed 1,00,000 mark in CTV exports to Russia in a span of just 2 years and plans to grow in

these markets at a much faster pace.

Apart from Television Exports to Russia, Onida also exports DVD Players and high

end LCD Televisions.

Onida also plans to expand its international presence by:

Developing a production facility in the CIS countries / North Africa.

Launching Home Theatre systems, Microwave Ovens, Vacuum Cleaners and

Washing machines in countries apart from Gulf Cooperation Countries in near future.

Launching the Onida range in Nigeria, Yemen and Iran/Iraq and SAARC countries as

well.





3. MCKINSEY’S 7S FRAMEWORK WITH REFERENCE TO ONIDA

McKinsey‟s 7S Framework

The McKinsey 7S framework helps understand several major aspects of

3.1 Structure:

Chairman & MD

CEO VP-OperationsVP- Marketing,

Sales and Service

MD





3.2 Systems:

Onida uses online software called as EPIC which is an application for the employees.

It facilitates the organisation to gather personal information about employees and keep it in

the personal repository. It also maintains records about the accomplishments of the

employees, their potentials, interests and information about their spouses and children.

Matured organisations have infrastructures to share this information pertaining to individual

employees accessible only to them and to the organisation. EPIC is an effort towards this

direction.

Onida also has a Leave management system in place where in the employees can

apply for leave using their online portal www.onida.com with their respective employee ID

and password.

Onida also has its service network accessible through their website www.onida.com

where in either the dealer or customer can request for a product installation or register a

service call.

3.3 Style:

The management follows a participative style of management which creates an

environment for growth of employees. They believe to work together as a family in mutual

trust and responsibility.

3.4 Staff:

Staff mainly consists of types and number of personnel within the organisation. Onida has a

highly motivated workforce of 10 employees which includes the following at their Bangalore

branch office:

Regional Manager – 1

Branch Manager – 1

HR Manager - 1

Finance Manager - 1

Sales Officer – 3





Receptionist – 1

Support Staff - 2

3.5 Skills:

The main skills required for the employees to function efficiently in Onida include soft

skills as well as hard skills. Skills are essential in order to facilitate smooth functioning of

business processes. There are two levels of employees- one at the strategic level and another at

the operational level.

The skills required at the strategic level is creativity, business skills, analytical skills and

decision making skills. These skills are not easy to acquire and hence are better gained by

industry experience than by training. At the top management level, most of the executives

have 10 -15 years experience in retail and consumer durables or in related fields

3.6 Strategy:

The following are the different strategies followed in Onida:

Marketing Strategy: It follows a simple marketing philosophy that a good product, brand of

a market leader, image of an innovator and promotions that distinguish it from the

competitors will for sure lead to success. Now its future strategy is to focus on cost reduction,

business expansion and discover new platforms for focused public relations.

Operation Strategy: Frequent change in Advertising: What is interesting about Onida is the

branding. The creative duty of the brand has partly moved from one marketing agency to

another i.e. from Rediffusion to McCann Erickson. But as usual, when the agency changes,

the entire brand elements changes. For Onida, the change till now unfortunately is always for

the worse. When O&M took the brand from Avenues, the famous tagline “Neighbour‟s Envy,

Owner's Pride” and the Devil was taken off.





3.7 Shared Values:

Commitment to society/nation

We respect the society and the environment to which we belong and will contribute to

its progress and welfare.

Passion for quality

Strive to create products with substance that are the best in class. Never compromise

on quality. Give our customer better value-for-money, always.

Fairness

We stand for truth, fairness and justice in all our business and individual dealing -

without this spirit, no man can win respect no matter how capable he may be.

People - our greatest assets

We value good people. It is our responsibility to create actively and constantly an

environment that supports them to grow and flourish.

Harmony and co-operation

Alone we are weak. Together we are strong. Work together as a family in mutual trust

and responsibility.

Courtesy and Humility

Respect the right of others. Be cordial, modest and humble. Praise and encouragefreely.

Strive for continuous improvement ( KAIZEN )

Seek and find in every action a way to do things better, always better.

Growth

Growth is vital. Increasingly seek out ways and means to constantly move forward.

Innovation

Progress by adjusting to ever-changing environment around us. As the world moves

forward, we must keep-in-step.

Gratitude

Always repay the kindness of our customers, associates, community, nation and

friends worldwide with gratitude.





4. SWOT ANALYSIS

4.1 Strengths:

The approach: The approach of Onida is entering and ruling the market throughcompetitive technology and high quality products

Target: The target of Onida is not only number driven but also about acquiring and

retaining customers

Brand: Onida has created a unique brand image for itself as a high end value driven

brand

Mass market: Targeting the mass market is Onida‟s core strength

4.2 Weakness:

Promotions: Less Investment is done on Promotions and Advertisement in

comparison of the competitors by Onida

Obsolescence: Now the DEVIL MAN in the advertisement is not working for ONIDA

and company is not able to connect with this generation.

Lack of awareness: Customers are not aware about all the products of Onida.

4.3 Opportunities:

Indian mass market: The Indian mass market is substantially large and sustainable

Value: The high end value driven proposition helps Onida in increasing market share.

Semi urban markets: The growing semi urban market is also a great opportunity that

Onida should try and explore

Purchasing power: Purchasing power of people is increasing day by day and this is

beneficial if Onida can tap it

4.4 Threats:

Competition from MNC's: The Indian mass market may be captured by rival MNCs

like LG, SAMSUNG and SONY

Price erosion: Due to increased price of inputs and continuing price erosion there is

downtrend in the consumer durable market





5. ANALYSIS OF FINANCIAL STATEMENT

During the year under review the turnover of the Company increased from Rs.1517.72

crores to Rs.1568.35 crores. The Profit before tax increased from Rs. 10.15 crores to

Rs.22.65 crores registering an increase of 123% and the Profit after tax increased from

Rs.8.95 crores to Rs.18.77 crores registering an increase of 105%.

During the year under review, income from operation stood at Rs. 3609.99 lacs as

compared to Rs. 3144.99 lacs in the previous year which stands increased by 14.78% over the

previous year. The Company has earned a profit before tax of Rs. 216.17 lacs and profit after

tax of Rs. 179.12 lacs against loss during the previous year.





6. LEARNING EXPERIENCE

My learning experience at Panasonic began with uncertainty and nervousness as it was

my first time in an organization. I was surprised by the technology and infrastructure. Though

it was just a branch, the kind of business that I saw surprised me. I got to observe a number of

activities. Working with other interns helped me get better insights in various activities and

processes.

An initial induction program helped me understand the main objectives of the

organization as well as their current operations. It gave me a detailed understanding of the

product range of Onida as well as its main target segments. This formed the basis of my

research where in I have attempted to explore the consumer perception of Onida in the

current retail industry.

The fact that Onida is the top most brands in the electronic consumer goods segment

makes this research even more essential as then it is possible to accurately identify the

shortcomings in positioning, marketing and consumer perception in order to ensure that the

right kind of decisions and strategies can be directed towards achieving the marketing

objectives of Onida.

My experience in Onida was filled with enthusiasm and learning. It helped me realize

that there are several similarities and several differences between the theories of management

that we learn in a classroom and the actual practices in an organization. I did observe several

applications of marketing, human resources and finance in Onida and this helped me gain in

depth understanding as well as clarity in several functions in an organization.

The research carried out, though on a very small scale, has helped me understand the

most significant measures and processes that are to be taken up by the firm in order to

improve its position in the electronics retail sector. The perception of the consumer and the

positioning strategies of Onida require to be aligned and the existing gap between these has to

be bridged and this finding forms the crux of this research.

To end my learning experience, this research project has helped me get a firsthand

experience of the corporate culture and also gain several insights into the retail industry

which will definitely benefit me in my personal and professional development and also shall

help in better implementation of theoretical concepts in the practical world of corporate.





7. GENERAL INTRODUCTION

7.1 Introduction

Every business organization that comes into contact with the customer develops a perceptionin the mind of the customer. Today, in this competitive world every organization needs to

know the perception in the mind of the customers. In order to gain mind share or heart share

of customers along with the market share is the main lookout for the organizations.

Especially in consumer electronics sector, where the products are more or less same, the only

way to leave positive impact on customer‟s mind and to gain competitive advantage is

providing best possible services to the customers.

The customers are very important and play a crucial role in any process of marketing. Today,

customers are the kings of the market because the customer loyalty and customer preference

are built by the products and the services offered to the customers and they seek for the more

benefits and money‟s worth for the amount they spend. That is where the concept of customer

preference and consumer behaviour comes because the customers make the marketers to

rethink about designing the products and services. They have to think about the market

segmentation, market strategies, consumer behaviour, consumer‟s tastes, consumer‟s lifestyle

etc also. Many marketers are smart enough to understand consumers‟ needs, wants and

demands and perform beyond their expectations i.e. they delight them. It provides them

growth, profitability and creativity with lot of inventions.

The idea that customers prefer one product or one service over another is not new. The

ability to identify and measure the elements of such preference decisions with any accuracy

and reliability has only recently become available.

Research into this area of consumer behavior has brought understanding to some of the major

issues with standard customer satisfaction research. Most importantly, we have come to

realize that high customer satisfaction does not assure continued customer preference.





7.2 Problem Statement: The research primarily aims to understand the customer‟s

preference towards Onida brand compared to its major competitors.

7.3 Objectives of the study:

Primary Objective

1. To understand the customers preference towards Onida compared to its major

competitors.

Secondary Objectives

1. To understand the various factors which influences a consumer in purchasing

consumer durable products.2. To understand the competitiveness of Onida‟s products with that of its competitors.

3. To understand the relationship between the demographic factors like age, occupation

etc and preference of the customers towards Onida.

4. To provide recommendations to improve Onida‟s market position.

7.4 Scope of the study:

1. The survey was conducted in Bangalore City.

2. The study and the analysis is restricted to the information got from Onida‟s Bangalore

Branch Office.

7.5 Limitations of the study

1. The study was limited only to the customers of Bangalore Only.

2. The sample size considered was 127 3. Due to time and monetary constraints the data could not be collected from other cities.

4. Analysis is based on the respondents and the respondents may be biased





8. REVIEW OF LITERATURE

1. Testing the Value of Customization: When Do Customers Really Prefer Products

Tailored to Their Preferences?

Franke, Nikolaus; Keinz, Peter; Steger, Christoph J. Journal of Marketing,

Sep2009, Vol. 73 Issue 5, p103-121, 19p,

DOI: 10.1509/jmkg.73.5.103

Recently, researchers have paid increasing attention to the marketing strategy of

customization. A key assumption is that customized products create higher benefits for

customers than standard products because they deliver a closer preference fit. The

prerequisite for this effect is the ability to obtain precise information on what customers

actually want. But are customers able to specify their preferences that precisely? Several

theoretical arguments raise doubts about this, implicitly challenging the value of

customization.

2. Earning the Right to Indulge: Effort as a Determinantof Customer Preferences Toward Frequency Program Rewards.Full Text

Available

Kivetz, Ran; Simonson, Itamar. Journal of Marketing Research (JMR)

May2002, Vol. 39 Issue 2, p155-170

The authors investigate the impact of the level of effort participants must invest to obtain the

reward on the types of rewards they prefer and. consequently, on the decision to join the FP.

In particular, the authors propose that higher required effort shifts consumer preferences from

necessity to luxury rewards, because higher efforts reduce the guilt that is often associated

with choosing luxuries over necessities.

http://web.ebscohost.com/ehost/viewarticle?data=dGJyMPPp44rp2%2fdV0%2bnjisfk5Ie45PFIrqevT66k63nn5Kx95uXxjL6qrUm3pbBIr6eeTbirtlKyrZ5Zy5zyit%2fk8Xnh6ueH7N%2fiVbKqt0yvq7BLt5zqeezdu33snOJ6u9jzgKTq33%2b7t8w%2b3%2bS7TLGrs0izprE%2b5OXwhd%2fqu37z4uqM4%2b7y&hid=8








http://web.ebscohost.com/ehost/viewarticle?data=dGJyMPPp44rp2%2fdV0%2bnjisfk5Ie45PFIrqevT66k63nn5Kx95uXxjL6qrUm3pbBIr6eeTbirtlKyrZ5Zy5zyit%2fk8Xnh6ueH7N%2fiVbKqt0yvq7BLt5zqeezdu33snOJ6u9jzgKTq33%2b7t8w%2b3%2bS7TrWmtlC1rqR%2b7ejrefKz5I3q4vJ99uoA&hid=8
















3. Eliciting Online Customers' Preferences: Conjoint vs Self-Explicated Attribute-

Level Measurements

Aggarwal, Praveen1 [email protected]

Vaidyanathan, Rajiv

Journal of Marketing Management; Feb2003, Vol. 19 Issue ½

The growth of the Internet for shopping has lead to an increasing interest in tools for assisting

consumers with decision-making, efficiently using the vast quantity of widely dispersed

information. Online product recommendation agents gather information from consumers and

then match these consumer preferences with their database of products to recommend the

best product. Two approaches can be taken for gathering information from consumers on

their preferences--conjoint-type full-profile ratings or self-explicated ratings. That is,

organizations may infer consumers' preferences for attributes and levels on the base of their

ratings of several alternative products or may simply directly ask them their evaluations of

various attributes and levels.

4. An empirical investigation of customer preferences in mobile services.

Tripathi, Shalini N.; Siddiqui, Masood H.. Journal of Targeting

Measurement & Analysis for Marketing,

Mar2010, Vol. 18 Issue 1, DOI: 10.1057/jt.2009.28

Expanding and maintaining a loyal customer base appears to be a daunting task for mobile

service providers. This article purports that service providers could try to gain valuable

insight into consumer preferences, and design mobile service packages accordingly, the

objective being determination of the relative importance of attributes in consumer choiceprocesses related to service packages. Conjoint Analysis was used to analyze how customers‟

trade off among various salient factors in selecting a package. Further, conjoint models have

been suggested for different demographic subgroups.

http://web.ebscohost.com/ehost/viewarticle?data=dGJyMPPp44rp2%2fdV0%2bnjisfk5Ie45PFIrqevT66k63nn5Kx95uXxjL6qrUm3pbBIr6eeTbirtlKyrZ5Zy5zyit%2fk8Xnh6ueH7N%2fiVbKqt0yvq7BLt5zqeezdu33snOJ6u9jzgKTq33%2b7t8w%2b3%2bS7TLaptUi3prU%2b5OXwhd%2fqu37z4uqM4%2b7y&hid=8










5. Modelling of Customer Preferences on Product Features and Comparing the

Competitors’ Performances

Prasun Das

Sandip Mukherjee

Understanding of consumers‟ perception about various product features helps companies to

identify their own strengths and weaknesses. This article aims at finding the relative brand

position of a company along with the nature of preference as perceived by the customers

towards its major competitors. Information obtained through a feedback survey was subjected

to analysis using multivariate statistical techniques. Feature-based preferences by the

customers to evaluating companies‟ performances in the retail footwear market are reported

here.





9. RESEARCH METHODOLOGY

9.1 Research design:

The research design is the blue print for the collection, measurement and analysis of data.

Through this design it is able to test the veracity of the hypothesis on the basis of resulting

data. It is the basis on which the problem is studied further.

This research follows a Descriptive Research design. Descriptive studies as their name

implies are designed to describe something – for e.g. the characteristics of users of a given

product, the degree to which product use varies with income, age, sex or other characteristics.

Descriptive studies can be broadly classified into two types – case method and statistical

method. The one followed in this research is statistical. The statistical method is the most

widely used method in marketing research and is the method usually implied when a

“survey” is referred to. The name comes from the statistical techniques that are used in

analyzing the data collected – techniques that vary from simple means and percentages to

very sophisticated techniques that require computers to manipulate the data.

9.2 Sources of data:

Primary Data:

Primary Data is also called as first hand data which contains information that

has been collected specifically for the purpose of investigation at hand. Primary data

collection requires greater effort and is time consuming and expensive.

In this study the primary data has been collected through a questionnaire ie.,

by survey method and a copy of it is attached in the annexure.

Secondary Source:

Secondary data is the information that has been gathered not for the immediate study

but for some other purpose. It is collected by people or agencies in response to some

other problem rather than that problem at hand. This data is easily available and at a

relatively low cost.

The secondary data for this study was collected from EBSCO, Google

Scholar, journals, published books, company websites, files and internet.





9.3 Methods of data collection:

Primary Data:

Primary data was collected using a structured Questionnaire. This questionnaire

contained 18 questions which were in the form of a likert scale, ranking and rating. It

also had some demographic questions like gender, age, occupation, marital status and

income. This questionnaire was administered to prospective customers (both male and

female) visiting the various electronic stores at Bangalore.

Secondary Data:

The secondary data was collected from the company website, databases like Ebsco

and books on Business research methods.

9.4 Method of Sampling

Among the various methods Convenience sampling method has been chosen to conduct this

survey. It is a non-probability sampling technique.

9.5 Sample Size

The sample chosen for analysis in this survey is the customers visiting the various electronic

stores in Bangalore. The sample size considered was 127

9.6 Profile of the respondents

The respondents considered for the study are the customers visiting the various consumer

electronic stores in Bangalore.

9.7 Statistical tools used:

Factor Analysis a statistical tool using SPSS

Anova a statistical tool using SPSS





10. ANALYSIS AND INTERPRETATIONS

In this chapter, simple tabulations of each question in the questionnaire (Annexure 1) was

conducted, cross tabulations was also conducted. Factor Analysis was done in order to

identify the various factors which affect the effectiveness of flat organization structure amongemployees. Each hypothesis statement was tested using various statistical tools.

Univariate and Bivariate Analysis:

Univariate analysis is a single variable analysis. In a questionnaire based research project,

each question usually represents a variable under study. Bivariate analysis involves two

variables at a time. Two different questions in a questionnaire may represent two variables. If

these two variables are analyzed together, it is called bivariate analysis.

Simple tabulation involving a single variable constitutes univariate analysis, and cross

tabulation of two variables at a time constitutes bivariate analysis. Two variables are called

independent variables if a change in one does not influence or cause a change in the other.

But if a change causes a change in the other, the first one is called an independent variable,

and the second one is called a dependent variable (dependent on the first).

First stage analysis – Simple Tabulation:

In a questionnaire based survey, the first stage of analysis is called simple tabulation. This

consists of every question being treated separately. For every question, the number of

responses in each category of answers is counted in addition to the number of respondents

who fall into each category, the percentage of the respondents also is computed.

Second stage analysis – Cross Tabulation

After the simple frequency and percentage tabulation for every question on the questionnaire

comes the second stage- the cross tabulations. A cross tabulation can be done by combining

any two of the questions and tabulating the data together





10.1 Simple Tabulation

Q No.1: Analysis on various consumer durable products owned by the respondents

Options LC

D

LE

D

CT

V

Music

System

DVD

Player

Mobile

Phone

Microwa

ve

Washing

Machine

Project

or

No. of

responde

rs

80 34 45 82 92 126 75 103 19

%age 63 27 35 65 72 99 59 81 15

Table 10.1

Chart showing the various consumer durable products owned by the respondents

Graph: 10.1

Interpretation: The above graph represents the ownership of various consumer durable

goods by the respondents. The results show that mobile phones, washing machines and DVDplayers are capital goods which are owned by maximum number of .people. The total number

of respondents that own a LCD TV is 63% and CTV is 35%.

Inference: The present consumer durables market is dominated by mobile phones. The result

depicts that the television market in India is not yet saturated and that there is high level of

untapped demand. Inspite of there being a high level of competition Onida should focus and

make attempts to sell Televisions, including the latest technologies to this segment.

0

102030405060708090

100

63

2735

6572

99

59

81

15





Table 10.2

Q No.2: Analysis of the various factors influencing the purchase decision for consumer

durable goods

Rate each of the below mentioned factors influencing your purchasedecision of electronic goods

1 2 3 4 5

Product Features 13 4 38 34 38

Brand Image 3 20 19 56 29

Price 5 9 42 47 24

After sales service 3 12 36 37 39

Durability 2 4 29 45 47

Word of mouth 4 31 33 32 27

Previous Experience 4 21 35 51 16

Others Experience 14 16 24 52 21

In shop Promoters 13 19 36 38 21

Quality 1 8 17 45 56

Advertising 2 16 32 53 24

Dealer 5 20 41 39 22

Celebrity Endorsement 6 39 26 30 26

Association with events26 25 27 28 21





Chart showing the factors influencing the purchase decision for consumer durable

goods

Graph: 10.2

Interpretation: The above graph represents the ratings given to the various factors

influencing the purchase decision of consumers. The factors that have been highly rated as

those which impact the purchase decision of consumers are product features, after sales

service, durability and quality. The factors that have been rated as the least influential

towards the purchase decision are association with events, celebrity endorsements and word

of mouth.

Inference: This shows that consumers are greatly impacted by some of the factors and Onida

needs to focus and strengthen these factors for improving its competencies and competitive

advantage.

13

3

5

3

2

4

4

14

13

1

2

5

6

26

4

20

9

12

4

31

21

16

19

8

16

20

39

5

38

19

42

36

29

33

35

24

36

17

32

41

26

27

34

56

47

37

45

32

51

52

38

45

53

39

30

28

38

29

24

39

47

27

16

21

21

56

24

22

26

21

0 20 40 60 80 100 120 140

Product Features

Brand Image

Price

After sales service

Durability

Word of mouth

Previous Experience

Others Experience

In shop Promoters

Quality

Advertising

Dealer

Celebrity Endorsement

Association with events

Series1

Series2

Series3

Series4

Series5





Q No.3: Analysis on the respondents who own an Onida product

Title Have you ever purchased any product of Onida?

Options Yes No

No. of respondents62 65

%age 49 51

Table 10.3

Chart showing the respondents who own an Onida product

Graph: 10.3

Interpretation: The above graph represents the percentage of respondents who have

purchased a product of Onida. The results show that 49% of the respondents have purchased

a product of Onida. It is essential to note that 51% of the respondents have never purchased a

product of Onida.

Inference: The results of this question show that there are several people who have never

purchased a product of Onida. It is important that Onida works towards selling to thissegment by establishing trust through its branding activities. This will help Onida to cover an

untapped segment. It is also important that Onida focuses its marketing efforts towards

retaining its existing customers.

48

48

49

49

50

50

51

51

52

Yes No

49

51





Q No.4: Analysis on the brand preference of the respondents

Select the Brand based on your preference for purchasing the following goods

Samsung LG Onida Sony Panasonic Philips Others

Air Conditions 66 46 6 0 3 0 6

Televisions 24 26 24 34 6 12 1

LCD/LED 26 22 23 35 6 14 1

Music Systems 11 9 13 53 9 30 2

DVD Players 9 3 14 57 9 34 1

Mobile Phones 36 4 3 15 0 0 69

Microwave 30 63 23 0 0 0 11

Washing Machines 40 49 9 0 2 0 27

Projectors 3 3 27 18 24 0 52

Table 10.4





Chart showing the brand preference of the respondents

Graph: 10.4

Interpretation: There are certain brands which have a stronger hold in certain product

categories so Onida can use this information for the purpose of forming suitable competitive

strategies. Samsung has the highest number of respondents that favour it in case of Air-

Conditions, Sony has the highest number of respondents that favour it in case of Televisions,

LCD/LED, music systems and DVD players. LG has the highest number of respondents that

favour it in case of Microwaves and washing machines. Other brands like Nokia, Apple etc

dominate the mobile phone segment. Onida is the second favoured brand in case of

projectors.

Inference: This shows that there is a lot of competition that Onida faces in all of the

segments. It fairs only in case of Televisions and requires improving its market share as well

as aligning itself to customer requirements and preferences to a great extent.

66

24

26

11

9

36

30

40

3

46

26

22

9

3

4

63

49

3

6

24

23

13

14

3

23

9

27

0

34

35

53

57

15

0

0

18

3

6

6

9

9

0

0

2

24

0

12

14

30

34

0

0

0

0

6

1

1

2

1

69

11

27

52

0 20 40 60 80 100 120 140

Air Conditions

Televisions

LCD/LED

Music Systems

DVD Players

Mobile Phones

Microwave

Washing Machines

Projectors

Samsung

LG

Onida

Sony

Panasonic

Philips

Others





Q No.5: Analysis on the influence of advertisements on purchasing decision

Title

Do advertisements affect your purchasing

decision?

Options Yes No

No. of respondents 91 36

%age 72 28

Table 10.5

Chart showing the influence of advertisements on purchasing decision

Graph: 10.5

Interpretation: The above graph represents the percentage of respondents that believe that

advertisements affect their purchasing decision. 72% of the respondents believe that

advertisements affect their purchasing decision and only 28% believe that advertisements donot affect their purchasing decision.

Inference: This result clearly shows that advertisements have an extremely important role to

play in influencing the buying decisions of the consumers. The reduction in the frequency

and popularity of Onida‟s advertisements can have a grave impact on its sales. So its

extremely important that Onida focuses on improving its advertising strategies.

0

10

20

30

40

50

60

70

80

Yes No

72

28





Q No.6: Analysis on the recall ability of Onida’s advertisements

Title When did you last see Onida's advertisement

Options Within 3 months 3-6 Months 1 year back Don‟t Remember

No. of respondents

26 28 20 53

%age 20 22 16 42

Table 10.6

Chart showing the recall ability of Onida’s advertisements

Graph: 10.6

Interpretation: The above graph represents the remembrance of the respondents of having

seen Onida‟s advertisements. 42% of the respondents don‟t remember having seen Onida‟s

advertisements. Only 20% of the respondents remember seeing Onida‟s advertisements

within the last 3 months.

Inference: This result shows that the frequency and reach of Onida‟s advertisement is

extremely low. So its important that they improve their advertisement strategies so that they

can gain better attention from their target market. In case of its advertisements it is also

important that Onida focuses on improving the remembrance value of its advertisements.

0

5

10

15

20

25

30

35

4045

Within 3

months

3-6 Months 1 year back Don’t

Remember

2022

16

42





Q No. 7: Analysis on the perception of respondents towards the factors for Onida

Rate Onida based on each of the given factors

V.Good Good Average Poor V.Poor

Price 23 56 39 6 3

Quality 12 57 42 14 2

Features 10 39 50 24 4

Availability 9 24 52 23 19

Service 10 28 57 23 9

Table 10.7

Chart showing the perception of respondents towards the factors for Onida

Graph: 10.7

Interpretation: The above graph represents the opinion of the respondents in relation to

several factors related to Onida. The factors of Price and quality have been rated by the

respondents as good. Apart from these the other mentioned factors which include service,

availability and features are rated as bad and poor.

Inference: It is extremely important for Onida to improve all of these factors in order to

remain competitive and gain better market position. This can help Onida to improve its

market position to a great extent as then it‟ll be able to align several of its offering s to

consumer requirements.

0 50 100 150 200 250

Price

Quality

Features

Availabilty

Service

23

56

39

6

3

12

57

42

14

2

10

39

50

24

4

9

24

52

23

19

10

28

57

23

9

V.Good

Good

Average

Poor

V.Poor





Q No.8: Analysis on the perception of respondents towards the factors for purchasing

an electronic product

In your opinion rate the factors that are important for an electronic product?

Ext.

Imp V.Imp Somewhat Imp Not very imp Not at all Important

Advertisements 57 47 17 6 0

Availability 61 50 11 4 1

Brand image 39 50 25 11 2

Durability 61 46 14 5 1

Promotional scheme 32 55 63 17 6

Price 67 42 12 5 1

Table 10.8

Chart showing the perception of respondents towards the factors for purchasing an

electronic product

Graph: 10.8

0 50 100 150 200

Advertisments

Availability

Brand image

Durability

Promotional scheme

Price

57

61

39

61

32

67

47

50

50

46

55

42

17

11

25

14

63

12

6

4

11

5

17

5

0

1

2

1

6

1

Ext. Imp

V.Imp

Somewhat Imp

Not very imp

Not at all Important





Interpretation: The above graph represents the opinion of the respondents with regard to the

factors that are important for an electronic product. The factors that were rated as the highest

in case of factors for an electronic product are price, durability, availability and

advertisements. These factors are considered to have a great impact on the buying decision

made by the consumers. Companies also need to focus on promotional scheme and brand

image.

Inference: It is very important for Onida to understand that improving these factors can help

them improve their market position, competitiveness and competencies. This is only possible

if Onida is able to improve its price, durability, brand image, availability and advertisements.





Q. No 9: Analysis on the various factors to be improved by Onida

Title Which of the factors should be improved by Onida?

Options Advertisements Availability Brand Image Durability

Promotional

Scheme Price

No. of respondents 76 79 72 39 36 26

%age 60 62 57 31 28 20

Table 10.9

Chart showing the various factors to be improved by Onida

Graph 10.9

Interpretation: The above graph represents the various factors that the respondents feel

should be improved by Onida. 60% of the respondents stated that availability of Onida‟s

product should be improved, 60% of the respondents stated that the advertisements of Onida

should be improved and 57% of the respondents stated that Onida must improve their BrandImage.

Inference: In general people believe that availability, advertisements and their brand image

needs to be improved in order to help Onida improve as a firm in the Consumer Durable

Industry. It is possible that the brand of Onida is greatly improved by adopting these

suggestions. In case of Onida not being able to improve these factors it is possible that it loses

its competencies and competitiveness.

0

10

20

30

40

50

60

70 60 6257

31 28

20





Q. No 10: Analysis on the various factors considered for buying an Onida’s product

Rank the factors that you would consider for

buying an Onida Product

1 2 3 4

Availability 55 20 22 30

Price 21 38 46 22

Features 35 37 39 16

Design 16 32 21 58

Table 10.10

Chart showing the various factors considered for buying an Onida’s product

Graph: 10.10

Interpretation: The above graph represents the rankings of the factors considered for buying

an Onida product. Availability has been ranked as the highest factor that would be primarily

considered for buying an Onida product. Price had been ranked as the second highestconsideration that is made by a buyer while purchasing an Onida product. Similarly Features

and design are ranked as third and fourth respectively for buying an Onida product.

Inference: It is very important for Onida to focus on strengthening its availability and pricing

in order to ensure that it can focus on improving its position in the market. In case of this not

being achieved by Onida it will result in loss of competitiveness and decrease in its market

share.

0 50 100 150

Availabilty

Price

Features

Design

55

20

22

30

21

38

46

22

35

37

39

16

16

32

21

58

Series1

Series2

Series3

Series4





DEMOGRAPHIC DETAILS

Age of the respondents

Title Age

Options 18-25 25-30 30-35 >35

No. of

respondents

20 41 38 28

%age 16 32 30 22

Table 10.11

Graph: 10.11

Interpretation: The above graph represents that 16% of the respondents were between the

age group of 18-25, 32% of the respondents were between the age group of 25-30, 30% of the

respondents were between the age group of 30-35 and 22% of the respondents were between

the age group of greater than 35. All of the respondents in this survey are fairly distributed

among the various age groups.

16

32

30

22

Age Group

18-25

25-30

30-35

>35





Gender

Title Gender

Options Male Female


%age 58 42

Table 10.12

Chart showing the gender of respondents

Graph: 10.12

Interpretation: The above graph represents that 58% of the respondents were males and

42% of the respondents were females. This again shows that there was a fair distribution

between both the genders.

58

42

0

10

20

30

40

50

60

70

Male Female

Gender





Marital Status

Title Marital Status

Options Single Married


%age 27 73

Table 10.13

Chart showing the marital status of respondents

Figure 10.13

Interpretation: The above graph represents that 27% of the respondents were single and

73% of the respondents were married. This represents that a high percentage of the people

that entered these stores and chosen as respondents were married. This also leaves us a hint

regarding the demographical characteristics of people who purchased consumer durables.

27

73

0

10

20

30

40

50

60

70

80

Single Married

Marital Status





Occupation

Title Occupation

OptionsStuden

t

Self

Employed

Professional practice Servic

e

House

Wife

Retire

d

No. of

responden

ts

19 25 28 30 24 1

%age 15 20 22 24 19 1

Table 10.14

Chart showing the occupation of respondents

Graph: 10.14

Interpretation: The above graph represents that the occupation of 24% of the respondents

was service, occupation of 22% of the respondents was professional practice and the

occupation of 20% of the respondents was self-employed. It depicts that there is hardly any

difference depicted on the bases of occupation.

15

20

2224

19

1

0

5

10

15

20

25

Student Self

Employed

Professional

practice

service house wife retired

Occupation





Income

Title Income

Options< 10000 10000 – 20000 20000-30000 30000-40000 >40000

No. of

respondents

9 18 38 32 30

%age 7 14 30 25 24

Table 10.15

Chart showing the income of the respondents

Graph: 10.15

Interpretation: The above graph represents that the income of 30% of the respondents

ranges between 20000-30000, income of 25% of the respondents ranges between 30000-

40000 and income of 24% of the respondents is greater than 40000. This shows that the

average income range in which most of the respondents and consumers belong is between

20000 to 30000.

7

14

30

25 24

0

5

10

15

20

25

30

35

< 10000 10000 - 20000 20000-30000 30000-40000 >40000

Income





10.2 Factor Analysis

Factor Analysis

Factor analysis is a very useful method of reducing data complexity by reducing the number

of variables being studied. Factor analysis reduces number of variables into fewer factors

which explains much of the original data.

Method

There are 2 stages in factor analysis

Stage 1: can be called as Factor extraction process, where the objective is to identify how

many factors will be extracted from the data. The most popular method for this is called

Principal Component Analysis.

Stage 2: After the number of extracted factors is decided upon in stage 1, the next step is to

interpret and name the factors. This is done by the process of identifying which factors are

associated with which of the original variables. The factor matrix is used for this purpose.

The original factor matrix is unrotated and is a part of the output from stage 1. The rotated

factor matrix comes about in stage 2. The factor matrix (whether rotated or unrotated) gives

the loadings of each variable on each of the extracted factors. Values close to 1 represent high

loadings and close to 0 represent low loadings. The objective is to find which have a high

loading on one factor, but low loadings on other factors. If factor 1 is a linear combination of

three variables, it is given a suitable name representing the essence of the original variables of

which it is a combination.





KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .778

Bartlett's Test of Sphericity Approx. Chi-Square 598.832

Df 91.000

Sig. .000

Table 10.2.1

Interpretation: KMO Barletts measure of sample adequacy is an index used to test

appropriateness of the sample. The minimum required KMO is 0.5. The table shows that

KMO value is .778(>0.5) and significance is 0.00 < 0.05. The principal component analysis is

appropriate for this data.

Total Variance Explained

Compon

ent

Initial Eigenvalues

Extraction Sums of Squared

Loadings Rotation Sums of Squared Loadings

Total

% of

Variance

Cumulative

% Total

% of

Variance

Cumulative

% Total % of Variance Cumulative %

1 3.957 28.261 28.261 3.957 28.261 28.261 2.684 19.168 19.168

2 2.684 19.174 47.435 2.684 19.174 47.435 2.264 16.171 35.339

3 1.263 9.021 56.456 1.263 9.021 56.456 2.211 15.792 51.131

4 1.146 8.184 64.640 1.146 8.184 64.640 1.891 13.509 64.6405 .851 6.078 70.717

6 .699 4.994 75.711

7 .630 4.503 80.215

8 .549 3.925 84.139

9 .498 3.561 87.700

10 .439 3.134 90.834

11 .392 2.798 93.632

12 .348 2.488 96.120

13 .288 2.057 98.177

14 .255 1.823 100.000

Extraction Method: Principal Component

Table 10.2.2





Interpretation: The first step in interpreting the operation was to look at all factors extracted

and their Eigen values and the cumulative% of variance. From the above table it can be seen

that the cumulative % is 64%. The 14 factors have been reduced to 4 factors, but we have lost

36% of the data.

Rotated Component Matrixa

Component

1 2 3 4

PREVIOUSEXPERIENCE .834

OTHERSEXPERIENCE .827

WORDOFMOUTH .787

INSHOPPROMOTERS .591

CELEBRITYENDORSMENT .824

ASSOCIATIONWITHEVENT

S.818

DEALER .579

BRANDIMAGE .821

PRODUCTFEATURES .728

PRICE .724

ADVERTISING .586

QUALITY .786

DURABILITY .718

AFTERSALESSERVICE .704

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 4 iterations.

Table 10.2.3





Interpretation: From this table it is observed that 14 variables have been grouped into 4

factors which are as follows.

From the table 10.2.3:

Derived factors are as follows:

Factor 1: V1- Previous Experience

V2- Others Experience

V3- Word Of Mouth

V4- In Shop Promoters

These 4 factors merge to form a single factor, termed as “Experience”.

Factor 2: V5- Celebrity Endorsements

V6- Association with events

V7- Dealers

These 3 factors merge to form a single factor, termed as “Channel Support &

Endorsements”.

Factor 3: V8- Brand Image

V9- Product Features

V10- Price

V11- Advertising

These 4 factors merge to form a single factor, termed as “Promotions & Product

attributes”.

Factor 4: V12- Quality

V13- Durability

V14- After Sales Service

These 3 factors merge to form a single factor, termed as “Quality and service”.





Chart showing the compressed Factors affecting customers purchase decision in the

consumer durables industry

Graph: 10.2.3





Cross Tabulations

Cross Tab showing the relation between gender and influence of advertisements onpurchase decision

GENDER * ADVTINFLUENCE Cross tabulation

Count

ADVTINFLUENCE

Yes No Total

GENDER Male 49 25 74

Female 42 11 53

Total 91 36 127

Table 10.2.4

Graph: 10.2.4

Interpretation: This result clearly shows that advertisements have an extremely important

role to play in influencing the buying decisions of the consumers of both the genders as 66 %

of the males are influenced by advertisements and 79% of the females are influenced by

advertisements.

Inference: It can be inferred that advertisements influences both the genders and affects their

purchasing decision process.





Cross Tab showing the relation between age groups and influence of advertisements on

purchase decision

AGE * ADVTINFLUENCE Cross tabulation

xCount

ADVTINFLUENCE

Yes No Total

AGE 18-25 16 4 20

25-30 33 8 41

30-35 25 13 38

>35 17 11 28

Total 91 36 127

Table 10.2.5

Graph: 10.2.5

Interpretation: This result clearly shows that advertisements have an extremely important

role to play in influencing the buying decisions of the consumers across all age groups. 80%

respondents ranging between the age of 18-25, 81% respondents between the age group of

25-30, 66% respondents of the age group between 30-35 and 61% respondents of the age

group greater than 35 agree that there is an influence of advertisements over their purchasingdecision.





10.3 ANOVA Tests

H0: There is no significance between the gender and purchase of an Onida product.

H1: There is significance between the gender and purchase of an Onida product.

ANOVA

PURCHASEDONIDA

Sum of Squares df Mean Square F Sig.

Between Groups .769 1 .769 3.106 .080

Within Groups30.963 125 .248

Total 31.732 126

Table 10.3.1

Interpretation: The significance value is 0.080 which is greater than 0.05 hence we reject

the alternative hypothesis and accept the null hypothesis which states that there is no

significance between the gender and the purchase of an Onida‟s product.

Inference: From the above result the significance is 0.080 which is higher that 0.05 it can be

inferred that both the genders male and female have the similar tendency either to buy or not

to buy a product of Onida.





H0: There is no significance between the occupation and purchase of an Onida‟s product

H1: There is significance between the occupation and purchase of an Onida‟s product

ANOVA

PURCHASEDONIDA

Sum of Squares df Mean Square F Sig.

Between Groups 3.537 5 .707 3.036 .013

Within Groups 28.195 121 .233

Total 31.732 126

Table: 10.3.2

Interpretation: The significance value is 0.013 which is less than 0.05 hence we accept the

alternative hypothesis and reject the null hypothesis which states that there is significance

between the occupation and the purchase of an Onida‟s product

Inference: From the above result as the significance level is 0.013 which is lower than 0.05

it shows there is a relation between the occupations and purchase of a product of Onida it can

be inferred that there is a particular occupational section which has a liking towards the

Onida brand and have purchased a product of Onida.





10.4 CROSS TABULATION

OCCUPATION * PURCHASEDONIDA Crosstabulation

Count

PURCHASEDONIDA

Total1 2

OCCUPATION Student 7 12 19

Self

Employ

ed

16 9 25

Professi

onal

Practice

20 8 28

Service 11 19 30

Housew

ife

8 16 24

Retired 0 1 1

Total 62 65 127

Table 10.4.1

Interpretation: From the above table it is seen that 71% of the professional practice

respondents have purchased an Onida product and 64% of the self employed respondents

have purchased an Onida product.

Inference: From table 10.4.1 we can infer that Professionals like lawyers, doctors etc and

self employed people or businessmen have a higher preference to buy Onida products and

have purchased a product of Onida compared to the other occupations.





11 FINDINGS AND SUGGESTIONS

11.1 Findings

1. It has been found that there is a small untapped market in the TV segment as only

35% of the respondents owns a CTV and 63% of the respondents own a LCD TV.

( Refer Table 10.1)

2. It has been found that product features, after sales service, durability and quality are

highly influential and association with events, celebrity endorsements and word of

mouth are the least influential in the purchase decision of an electronic product.

( Refer Table 10.2)

3. It has been found that 51% of the respondents have never purchased a product of

Onida. This shows that there is a large segment of people that have not purchased

Onida. ( Refer Table 10.3)

4. Samsung is the most preferred brand for Air conditioners and is the second most

preferred for LCD/LED televisions. ( Refer Table 10.4)

5. LG is the most preferred brand for microwave ovens and is the second most preferred

brand for Air conditioners. ( Refer Table 10.4)

6. Onida is the third most preferred brand for Microwave ovens and also is preferred for

Colour Televisions and LCD/LED TV‟s. ( Refer Table 10.4)

7. Sony is the most preferred brand for Audio and video products including televisions

and music systems. ( Refer Table 10.4)

8. Philips is the second most preferred brand in the DVD player category.

( Refer Table 10.4)

9. It has been found that advertisements have had a great amount of impact on the

purchase decision of consumers. ( Refer Table10.5 )

10. It has been found that 42% of the respondents don‟t remember when they last saw an

Onida‟s advertisement and only 20% of the respondents remember seeing it within the

last 3 months. ( Refer Table 10.6)

11. Onida has been rated as good in price and quality but has been found weak in service,

availability and product features. Price, durability, availability and advertisements are

the factors which the influence the consumers for purchasing an electronic product.

( Refer Table 10.7)





11.2 Suggestions

1. It is proven that there is a small chunk of people in India that still do not own a TV soit is important for Onida to focus in tapping of this segment by directing its marketing

and promotional efforts towards tapping of this segment. (Based on Finding 1)

2. The research shows that consumers are greatly impacted by factors like that product

features, after sales service, durability and quality and Onida needs to focus and

strengthen these factors for improving its competencies and competitive advantage.

(Based on Finding 2)

3. It is important that Onida works towards selling to this segment by establishing trust

through its branding activities like advertisements and promotions. This will help

Onida to cover an untapped segment. It is also important that Onida focuses its

marketing efforts towards retaining its existing customers.(Based on Finding 10)

4. Onida fairs only in case of Televisions and requires improving its market share as

well as aligning itself to customer requirements and preferences to a great

extent.(Based on Finding 4-7 through Table 10.4)

5. Since advertisements have a great impact on the purchase decision of the consumers it

is extremely important that Onida improves its advertising efforts significantly.(Based

on finding 9)

6. It is important that Onida improves service, availability and features in order to

improve its market position to a great extent as then it‟ll be able to align several of its

offerings to consumer requirements. (Based on finding 11)

7. In general people believe that availability, advertisements and their brand image needs

to be improved in order to help Onida improve as a firm in the Consumer Durable

Industry. ( Based on finding through Table 10.9)

8. It is very important for Onida to focus on strengthening its availability and pricing in

order to ensure that it can focus on improving its position in the market. In case of this

not being achieved by Onida it will result in loss of competitiveness and decrease in

its market share. ( Based on finding through Table 10.10)





12. CONCLUSION & RECOMMENDATION

It is recommended to Onida that they greatly focus on improving its marketing efforts. Thiscan be done by reforming its marketing strategy. Advertisements and promotional methods

followed in Onida have been found to be extremely ineffective. So there is a huge amount of

scope for Onida to regain its competitiveness by focusing on its marketing strategy. This will

help Onida to improve its market share and also improve its sales and revenues. Onida

requires focusing on improvement of availability, advertisements and their brand image to a

great extent. It is recommended that Onida adopts using several media like televisions,

newspapers, radio and the internet to advertise its product and uses various promotional

techniques like price discounts and festival offers.

To conclude, the customers have a very average image of Onida and are not even aware

about all of its products. Moreover the non-availability of Onida and its silence in the market

place is causing customers to forget Onida and its effectiveness. The factors like advertising,

technology, promotional activities and product features are to be focussed on by Onida. This

will help Onida to be at par with its competitor‟s products. Onida also needs to tap the

segments of professionals and self employed people as they have a preferable attitude and

opinion towards Onida. Onida can regain its market position to some extent by refocusing its

marketing efforts in the right direction and thus becoming more customers oriented. It is

important that Onida not only redirects its marketing strategy but also increases and

intensifies its marketing efforts in order to at par with several of its competitors.




13. BIBLIOGRAPHY

13.1 Journal references

Tripathi, Shalini N, Siddiqui, Masood H, “An empirical investigationof customer preferences in mobile services.” Journal of Targeting, Measurement &

Analysis for Marketing, Mar2010, Vol. 18 Issue 1.

Kivetz, Ran; Simonson, Itamar., “Earning the Right to Indulge: Effort as a

Determinant of Customer Preferences Toward Frequency Program Rewards.” Journal

of Marketing Research (JMR), May2002, Vol. 39 Issue 2, p155-170

Aggarwal, Vaidyanathan, Rajiv, “Eliciting Online Customers' Preferences: Conjoint

vs Self-Explicated Attribute-Level Measurements”, Journal of MarketingManagement; Feb2003, Vol. 19 Issue ½

Prasun Das, Sandip Mukherjee, “Modelling of Customer Preferences on Product

Features and Comparing the Competitors‟ Performances”

Franke, Nikolaus; Keinz, Peter; Steger, Christoph J., “Testing the Value of

Customization: When Do Customers Really Prefer Products Tailored to

Their Preferences?” Journal of Marketing, Sep2009, Vol. 73 Issue 5, p103-121.

13.2 Website references

1. www.onida.com

2. www.search.ebsco.com

3. http://www.techneau.org/fileadmin/files/Publications/Publications/Deliverables/D6.2.

1.pdf

4. http://www.iimahd.ernet.in/publications/data/2005-09-08preeta.pdf

5. http://www.joe.org/joe/2003october/tt4.php

13.3 Book references



















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