Videocon''s multi-pronged strategy

Anita Sharan
26 July 1999

Videocon and Onida, the two groups fighting for the number two position in India's colour TV market, have strategies that vary completely, and entirely different thinking motivates their moves in the marketplace. While Onida has harnessed a single brand with sub-brands to do all its work, all riding on superior technology, the Videocon group uses a multi-pronged, multi-brand strategy.

Videocon's plans for market dominance couldn't be more different from Onida's. The group talks multi-brand and multi-price. It has consciously adopted a multi-brand strategy -- besides its own brand, Videocon, it markets the Sansui, Toshiba and Akai brands. And you can expect some more names to be added to its brand wagon in the future.

Market research agency ORG-G  FK's readings for May 1999 put Videocon International's combined market share by volume at 16.8 per cent (Videocon: 10.5 per cent; Sansui: 4.6 per cent; Akai: 1.2 per cent; Toshiba: 0.5 per cent). Of course, .

"Our factory despatch figures show we did a total (all brands combined) of 1,33,000 TVs in May, of which the Videocon brand accounted for 85,000. And our OEM supply for Akai is not included in the total dispatch figure," says Mr Gupta. Against that ORG-GFK reads the Videocon brand's May volume at 52,600.

Videocon's strategy is two-pronged. It is planning to play serious ball at the low end of the market by tying up with a Chinese CTV manufacturer -- the name is still under wraps -- in order to offer prices of around Rs 6,000. This tack is also meant to combat another Chinese brand, Konka, which is targeting the Indian market with really low-priced CTV models.

The Videocon group foresees quantum growth in the lower end of the electronics market in India. "B and C class towns contribute 60 per cent of the company's revenues," says Mr Gupta. "With the metro markets getting saturated, it is the B and C towns and rural areas that offer the greatest scope for expansion."