Multi-Branding Strategy of Videocon Industries in the Consumer Durables Sector

            
 
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Case Details:

Case Code : MKTG116
Case Length : 17 Pages
Period : 1980 - 2005
Pub Date : 2006
Teaching Note :Not Available
Organization : Google Inc.
Industry : Consumer Durables
Countries : USA

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Excerpts

Background Note

In 1984, Nandlal Madhavlal Dhoot (N.M.Dhoot), together with his three sons - Venugopal, Rajkumar and Pradeep - founded VI in technical collaboration with the Japan-based Toshiba Corporation. Until then, the family had some sugar mills and a few other low-profile industrial interests in the Marathwada region of Maharashtra, India. With time, they had grown in stature but the establishment of VI surprised industry watchers...

VI's Brand Portfolio

Over the years, VI has bought the marketing and manufacturing rights to several MNC brands (Refer Exhibit II for VI's brands and product portfolio).

Initially, VI collaborated with Toshiba for technology and later bought the marketing rights of the brand in India. Subsequently, VI bought the marketing rights for Akai, Sansui, and Hyundai.

In 2005, VI has also bought the marketing rights of Electrolux, Kelvinator and Allwyn...

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

The Rationale for Multi-Branding

Prior to the liberalization of the Indian economy , the Indian consumer durables industry was dominated by Indian brands, both national as well as regional. The national brands included BPL, Onida, and Videocon and the regional brands were Weston, Bush, Salora, etc.

The Downsides

Experts suggested that a major drawback of following a multi-branding strategy is that unless the positioning and targeting are distinct, the brands tend to cannibalize each other. Even though the company may position the brands differently, it has to be perceived by the customers as distinct from the other brands...

Future Outlook

As of 2005, LG and Samsung had cornered a lion's share of the television and home appliances market. Moreover, Philips was chalking out major plans to rejuvenate its business in India...

Exhibits

Exhibit I: Videocon International's Financials
Exhibit II: VI's Brand & Product Portfolio
Exhibit III: About Akai Electric Co. Ltd
Exhibit IV: A. Market Shares in The Indian CTV Market in 2001
Exhibit V: Market Shares in Indian Microwave Oven Market in 2000
Exhibit VI: About Kelvinator
Exhibit VII: About Allwyn
Exhibit VIII: Market Shares in Indian Washing Machines Market in 2004
Exhibit IX: Market Shares in Indian Refrigerators Market in 2001
Exhibit X: Market Shares in The Indian AC* Market-1998-2004


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