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A Study on Consumers preference towards Onida
1. Industry Profile
Durable goods are those which dont 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
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A Study on Consumers preference towards Onida 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 industrys 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.
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A Study on Consumers preference towards Onida 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
A Study on Consumers preference towards Onida 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 200910 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.
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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; LCDs 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
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A Study on Consumers preference towards Onida 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
A Study on Consumers preference towards Onida satisfied customer is one who takes pride in ownership of our products and always recommends Onida. 2.4 Products Profile 1. 2. 3. 4. 5. 6. 7. 8. 9. LED Televisions LCD Televisions Colour Televisions DVD Players Air Conditioners Washing Machines Microwave Ovens Mobile Phones Projectors and display products
Onidas range of LED TV does begin from the 22 model and go up to the 40 variant. All of their LED TVs are designed with Full High Definition capability. They have designed the LED TVs with the unique ICare Technology so that the TV viewing is pleasurable.
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Onida offers a wide range of LCD TV from 22 to 42 with distinct features. Most of their LCD TVs are designed with Full High Definition capability to ensure brilliant picture clarity. Onida has different models of LCD TVs based on user requirement. Thus they have the PLUS Range, the Diamond series, the M series, and the colourful range of Vogue LCD TVs.
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.
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Todays 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.
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Indias 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 Indias 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.
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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 its so easy to use. So now customers can enjoy better, work better or simply talk better. 2.5 Areas of Operation Companys manufacturing plant is located at Thane, Noida and Roorkee. Today the company has network of 33 branch offices, 208 Customer Relation Centres 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.
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A Study on Consumers preference towards Onida 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 1 2 3 4 5 6 7 Name Gulu L Mirchandani Gulu L Mirchandani Vijay J Mansukhani AnoopPillai Manoj Maheshwari VimalBhandari RajanKapur Designation Chairman Managing Director Managing Director Company Secretary Director Director Director
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A Study on Consumers preference towards Onida 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.
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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. Gallery 6. Library 7. Security Office
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A Study on Consumers preference towards Onida 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
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A Study on Consumers preference towards Onida 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)
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A Study on Consumers preference towards Onida : 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
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A Study on Consumers preference towards Onida 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 marketers 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
A Study on Consumers preference towards Onida 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
A Study on Consumers preference towards Onida 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
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A Study on Consumers preference towards Onida 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.
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3. MCKINSEYS 7S FRAMEWORK WITH REFERENCE TO ONIDA

McKinseys 7S Framework The McKinsey 7S framework helps understand several major aspects of
3.1 Structure:
Chairman & MD
MD
CEO
VP-Operations
VP- Marketing, Sales and Service
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A Study on Consumers preference towards Onida 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
A Study on Consumers preference towards Onida 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 Neighbours Envy, Owner's Pride and the Devil was taken off.
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A Study on Consumers preference towards Onida 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 encourage freely. 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.
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4. SWOT ANALYSIS
4.1 Strengths: The approach: The approach of Onida is entering and ruling the market through competitive 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 Onidas 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
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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.
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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 perception in 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 customers 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 moneys 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, consumers tastes, consumers 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.
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A Study on Consumers preference towards Onida 7.2 Problem Statement: The research primarily aims to understand the customers
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 Onidas 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 Onidas 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 Onidas 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
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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 Determinant of 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.
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3. Eliciting Online Customers' Preferences: Conjoint vs Self-Explicated Attribute-
Level Measurements
Aggarwal, Praveen1 paggarwa@d.umn.edu Vaidyanathan, Rajiv Journal of Marketing Management; Feb2003, Vol. 19 Issue
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 choice processes 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.
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A Study on Consumers preference towards Onida 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.
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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.
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A Study on Consumers preference towards Onida 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
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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 among employees. 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
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A Study on Consumers preference towards Onida 10.1 Simple Tabulation
Q No.1: Analysis on various consumer durable products owned by the respondents Options LC D No. of responde rs %age 63 27 35 65 72 99 59 81 15 80 LE D 34 CT V 45 Music System 82 DVD Mobile Microwa ve 75 Washing Machine 103 Project or 19
Player Phone 92 126
Table 10.1
Chart showing the various consumer durable products owned by the respondents
99 100 90 80 70 60 50 40 30 20 10 0 65 35 15 72 59 81
63
27
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 DVD players 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.
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A Study on Consumers preference towards Onida 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 purchase decision of electronic goods
1 2 4 20 9 12 4 31 21 16 19 8 16 20 39 25 3 38 19 42 36 29 33 35 24 36 17 32 41 26 27 4 34 56 47 37 45 32 51 52 38 45 53 39 30 28 5 38 29 24 39 47 27 16 21 21 56 24 22 26 21
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
Table 10.2
13 3 5 3 2 4 4 14 13 1 2 5 6 26
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A Study on Consumers preference towards Onida Chart showing the factors influencing the purchase decision for consumer durable goods
Association with events Celebrity Endorsement Dealer 6 5 20 32 17 19 16 21 31 29 36 42 19 38 20 40 60 56 34 80 100 24 35 33 45 37 47 45 36 52 51 32 47 39 24 29 38 120 140 27 38 26 39 41 53 56 21 21 16 Series1 Series2 Series3 Series4 Word of mouth 4 Series5 5 26 27 30 39 28 21 26 22 24
Advertising 2 16 Quality 1 8 In shop Promoters Others Experience Previous Experience 4 13 14
Durability 2 4 After sales service 3 12 Price 5 9 20 13 4 0
Brand Image 3 Product Features
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.
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A Study on Consumers preference towards Onida Q No.3: Analysis on the respondents who own an Onida product
Title Options No. of respondents %age
Have you ever purchased any product of Onida?

Yes 62 49 No 65 51
Table 10.3 Chart showing the respondents who own an Onida product
51 52 51 51 50 50 49 49 48 48 Yes No 49
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 this segment 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.
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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
Televisions
24
26
24
34
12
LCD/LED
26
22
23
35
14
Music Systems
11
13
53
30
DVD Players
14
57
34
Mobile Phones
36
15
69
Microwave
30
63
23
11
Washing Machines
40
49
27
Projectors
27
18
24
52
Table 10.4
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A Study on Consumers preference towards Onida Chart showing the brand preference of the respondents
Projectors 3 3
27
18
24
52
Washing Machines
40
49
9 00 2
27
Microwave
30
63
23
0 11 Samsung
Mobile Phones
36
43
15 0
69
LG Onida 34 1
DVD Players
9 3 14
57
Sony Panasonic
Music Systems
11
13
53
30
Philips Others
LCD/LED
26
22
23
35
14 1
Televisions
24
26
24
34
12 1
Air Conditions 0 20
66 40 60 80
46 100
6006 3 120 140
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 AirConditions, 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.
A Study on Consumers preference towards Onida Q No.5: Analysis on the influence of advertisements on purchasing decision
Do advertisements affect your purchasing

Title Options No. of respondents %age Yes 91 72
decision?
No 36 28
Table 10.5 Chart showing the influence of advertisements on purchasing decision
72 80 70 60 50 40 30 20 10 0 Yes No 28
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 do not 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 Onidas advertisements can have a grave impact on its sales. So its extremely important that Onida focuses on improving its advertising strategies.
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A Study on Consumers preference towards Onida Q No.6: Analysis on the recall ability of Onidas advertisements Title Options No. of respondents %age 20 22 Table 10.6 Chart showing the recall ability of Onidas advertisements 16 42 When did you last see Onida's advertisement Within 3 months 26 3-6 Months 28 1 year back 20 Dont Remember 53
45 40 35 30 25 20 15 10 5 0 Within 3 months 3-6 Months 1 year back 20 22 16
42
Dont Remember
Graph: 10.6
Interpretation: The above graph represents the remembrance of the respondents of having seen Onidas advertisements. 42% of the respondents dont remember having seen Onidas advertisements. Only 20% of the respondents remember seeing Onidas advertisements within the last 3 months. Inference: This result shows that the frequency and reach of Onidas 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.
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A Study on Consumers preference towards Onida 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 Price Quality Features Availability Service 23 12 10 9 10 Good 56 57 39 24 28 Average 39 42 50 52 57 Poor 6 14 24 23 23 V.Poor 3 2 4 19 9
Table 10.7 Chart showing the perception of respondents towards the factors for Onida
Service Availabilty Features Quality Price 0
3 4 19 9 2 6 14 39 56 23 12 10 9 10 50 100 150 200 250 24 23 42 57 23 50 39 52 24 28 57
V.Good Good Average Poor V.Poor
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 itll be able to align several of its offerings to consumer requirements.
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A Study on Consumers preference towards Onida 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 Advertisements Availability Brand image Durability Promotional scheme Price 57 61 39 61 32 67 V.Imp 47 50 50 46 55 42 Somewhat Imp 17 11 25 14 63 12 Not very imp 6 4 11 5 17 5 Not at all Important 0 1 2 1 6 1
Table 10.8
Chart showing the perception of respondents towards the factors for purchasing an electronic product
Price 32
67
42
12 51
Promotional scheme
55
63
17 6 Ext. Imp
Durability 39
61
46
14 51
V.Imp Somewhat Imp
Brand image
50
25
11 2
Not very imp Not at all Important
Availability
61
50
11 4 1
Advertisments 0
57 50
47 100
17 60 150 200
Graph: 10.8
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A Study on Consumers preference towards Onida 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.
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A Study on Consumers preference towards Onida Q. No 9: Analysis on the various factors to be improved by Onida
Title
Which of the factors should be improved by Onida?

Promotional Advertisements Availability 76 60 79 62 Brand Image 72 57 Durability 39 31 Scheme 36 28 Price 26 20
Options No. of respondents %age
Table 10.9 Chart showing the various factors to be improved by Onida
70 60 50 40 30 20 10 0
60
62
57
31
28 20
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 Onidas 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 Brand Image.
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.
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A Study on Consumers preference towards Onida Q. No 10: Analysis on the various factors considered for buying an Onidas product
Rank the factors that you would consider for buying an Onida Product
1 Availability Price Features Design 55 21 35 16 2 20 38 37 32 3 22 46 39 21 4 30 22 16 58
Table 10.10 Chart showing the various factors considered for buying an Onidas product
Design
30
22
16
58
Features
22
46
39
21
Series1 Series2
Price
20
38
37
32
Series3 Series4
Availabilty 0
55
21
35
16
50
100
150
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 highest consideration 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.
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DEMOGRAPHIC DETAILS
Age of the respondents Title Options No. of respondents %age 16 32 Table 10.11 30 22 18-25 20 25-30 41 Age 30-35 38 >35 28
Age Group
16 18-25 25-30 30-35 32 30 >35
22
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.
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A Study on Consumers preference towards Onida Gender

Title Options No. of respondents %age Male 74 58 Gender Female 53 42
Table 10.12
Chart showing the gender of respondents
Gender
70 60 50 40 30 20 10 0 Male Female 58
42
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.
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A Study on Consumers preference towards Onida Marital Status

Title Options No. of respondents %age Single 34 27 Marital Status Married 93 73
Table 10.13
Chart showing the marital status of respondents
Marital Status
80 70 60 50 40 30 20 10 0 Single Married 27 73
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.
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A Study on Consumers preference towards Onida Occupation
Title Options Studen t No. of responden ts %age 15 20 19 Self Employed 25
Occupation Professional practice Servic e 28 30 House Wife 24 Retire d 1
22 Table 10.14
24
19
Chart showing the occupation of respondents
Occupation
25 20 15 10 5 1 0 Student Self Professional Employed practice service house wife retired 15 20 22 24 19
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.
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A Study on Consumers preference towards Onida Income
Title Options No. of respondents %age 7 14 < 10000 9 10000 20000 18
Income 20000-30000 38 30000-40000 32 >40000 30
30 Table 10.15
25
24
Chart showing the income of the respondents
Income
35 30 25 20 15 10 5 0 < 10000 10000 - 20000 20000-30000 30000-40000 >40000 7 14 30 25 24
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 3000040000 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.
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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.
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KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity Approx. Chi-Square Df Sig. .778 598.832 91.000 .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 Extraction Sums of Squared Initial Eigenvalues Compon ent 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Total 3.957 2.684 1.263 1.146 .851 .699 .630 .549 .498 .439 .392 .348 .288 .255 % of Variance 28.261 19.174 9.021 8.184 6.078 4.994 4.503 3.925 3.561 3.134 2.798 2.488 2.057 1.823 Cumulative % 28.261 47.435 56.456 64.640 70.717 75.711 80.215 84.139 87.700 90.834 93.632 96.120 98.177 100.000 Total 3.957 2.684 1.263 1.146 Loadings % of Variance 28.261 19.174 9.021 8.184 Cumulative % 28.261 47.435 56.456 64.640 Total 2.684 2.264 2.211 1.891 % of Variance Cumulative % 19.168 16.171 15.792 13.509 19.168 35.339 51.131 64.640 Rotation Sums of Squared Loadings
Extraction Method: Principal Component
Table 10.2.2
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A Study on Consumers preference towards Onida 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 Matrix
Component 1 PREVIOUSEXPERIENCE OTHERSEXPERIENCE WORDOFMOUTH INSHOPPROMOTERS CELEBRITYENDORSMENT ASSOCIATIONWITHEVENT S DEALER BRANDIMAGE PRODUCTFEATURES PRICE ADVERTISING QUALITY DURABILITY AFTERSALESSERVICE Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 4 iterations. .834 .827 .787 .591 .824 .818 .579 .821 .728 .724 .586 .786 .718 .704 2 3 4
Table 10.2.3
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A Study on Consumers preference towards Onida 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.
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A Study on Consumers preference towards Onida Chart showing the compressed Factors affecting customers purchase decision in the consumer durables industry
Graph: 10.2.3
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Cross Tabulations
Cross Tab showing the relation between gender and influence of advertisements on purchase decision
GENDER * ADVTINFLUENCE Cross tabulation Count ADVTINFLUENCE Yes GENDER Male Female Total 49 42 91 No 25 11 36 Total 74 53 127
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.
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A Study on Consumers preference towards Onida Cross Tab showing the relation between age groups and influence of advertisements on purchase decision
AGE * ADVTINFLUENCE Cross tabulation xCount ADVTINFLUENCE Yes AGE 18-25 25-30 30-35 >35 Total 16 33 25 17 91 No 4 8 13 11 36 Total 20 41 38 28 127
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 purchasing decision.
A Study on Consumers preference towards Onida 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 Between Groups Within Groups Total .769 30.963 31.732 df 1 125 126 Mean Square .769 .248 F 3.106 Sig. .080
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 Onidas 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.
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H0: There is no significance between the occupation and purchase of an Onidas product H1: There is significance between the occupation and purchase of an Onidas product
ANOVA PURCHASEDONIDA Sum of Squares Between Groups Within Groups Total 3.537 28.195 31.732 df 5 121 126 Mean Square .707 .233 F 3.036 Sig. .013
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 Onidas 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.
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A Study on Consumers preference towards Onida 10.4 CROSS TABULATION
OCCUPATION * PURCHASEDONIDA Crosstabulation Count PURCHASEDONIDA 1 OCCUPATION Student Self Employ ed Professi onal Practice Service Housew ife Retired Total 0 62 1 65 1 127 11 8 19 16 30 24 20 8 28 7 16 2 12 9 Total 19 25
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.
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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 TVs. ( 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 dont remember when they last saw an
Onidas 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 so it 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 itll 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)
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12. CONCLUSION & RECOMMENDATION

It is recommended to Onida that they greatly focus on improving its marketing efforts. This can 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 competitors 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.
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13. BIBLIOGRAPHY
13.1 Journal references An
Tripathi,
Shalini
N,
Siddiqui,
Masood
H,
empirical
investigation
of 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 Marketing
Management; Feb2003, Vol. 19 Issue 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 Kotler P. and Keller K.L. (2009), Marketing Management, 13th Edition, Pearson/Prentice Hall Pol, L.G. (1986) Marketing and demographic perspective, Journal of Consumer Marketing, Winter, Vol. 3, No. 1
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A Study on Consumers preference towards Onida

Dayananda Sagar College Of Engineering

Dayananda Sagar College Of Engineering

A Study on Consumers preference towards Onida

Dayananda Sagar College Of Engineering

Dayananda Sagar College Of Engineering

A Study on Consumers preference towards Onida

Dayananda Sagar College Of Engineering

A Study on Consumers preference towards Onida

Dayananda Sagar College Of Engineering

A Study on Consumers preference towards Onida

Dayananda Sagar College Of Engineering

A Study on Consumers preference towards Onida

Dayananda Sagar College Of Engineering

Dayananda Sagar College Of Engineering

Flat Tv Market Share in India

Dayananda Sagar College Of Engineering

A Study on Consumers preference towards Onida

Mobile Phones market share in India

Dayananda Sagar College Of Engineering

Dayananda Sagar College Of Engineering

Dayananda Sagar College Of Engineering

Dayananda Sagar College Of Engineering

Dayananda Sagar College Of Engineering

Dayananda Sagar College Of Engineering

A Study on Consumers preference towards Onida

3. MCKINSEYS 7S FRAMEWORK WITH REFERENCE TO ONIDA

VP- Marketing, Sales and Service

Dayananda Sagar College Of Engineering

Dayananda Sagar College Of Engineering

Dayananda Sagar College Of Engineering

A Study on Consumers preference towards Onida

Dayananda Sagar College Of Engineering

A Study on Consumers preference towards Onida

5. ANALYSIS OF FINANCIAL STATEMENT

Dayananda Sagar College Of Engineering

A Study on Consumers preference towards Onida

A Study on Consumers preference towards Onida

Dayananda Sagar College Of Engineering

7.5 Limitations of the study

Dayananda Sagar College Of Engineering

A Study on Consumers preference towards Onida

Dayananda Sagar College Of Engineering

A Study on Consumers preference towards Onida

Dayananda Sagar College Of Engineering

Prasun Das Sandip Mukherjee

Dayananda Sagar College Of Engineering

A Study on Consumers preference towards Onida

Dayananda Sagar College Of Engineering

A Study on Consumers preference towards Onida 9.3 Methods of data collection:

Dayananda Sagar College Of Engineering

A Study on Consumers preference towards Onida

10. ANALYSIS AND INTERPRETATIONS

Dayananda Sagar College Of Engineering

A Study on Consumers preference towards Onida 10.1 Simple Tabulation

Player Phone 92 126

Dayananda Sagar College Of Engineering

Dayananda Sagar College Of Engineering

Advertising 2 16 Quality 1 8 In shop Promoters Others Experience Previous Experience 4 13 14

Durability 2 4 After sales service 3 12 Price 5 9 20 13 4 0

Brand Image 3 Product Features

Dayananda Sagar College Of Engineering

Have you ever purchased any product of Onida?