Study of sales and distribution channel

of ONIDA and its competitorPresented by:

Mandhata SinghRoll No. :- 20

About ONIDA

Onida was started by G.L. Mirchandani, his brother Sonu Mirchandani and Vijay Mansukhani in 1981 in Mumbai. In 1982, Onida started assembling television sets at their factory in Andheri, Mumbai. Since then, Onida has evolved into a multi-product company in the consumer durables and appliances sector. Onida achieved a 100% growth in ACs and microwave ovens and a 40% growth in washing machines last year.

CONSUMER DURABLE: URBAN & RURAL INDIA

1.      In the top 5 million households, in affluence terms, 96 percent of households have color televisions, 82 percent own refrigerators, and 44 percent own washing machines.

2.      In the next 7 million households, penetration of color TVs is 69 percent, 58 percent for refrigerators, and 19 percent for washing machines.

3.      In the next tier of affluent households - numbering approximately 12 million - 50 percent own color TVs, 35 percent own refrigerators, and 8 percent own washing machines.

SWOT ANALYSIS: CONSUMER DURABLE INDUSTRY

STRENGTH o    “Accessory to Necessary” Air-conditioners are no longer perceived to be a item of luxury.o      Advancement of technology which gives the companies ability to introduce new products and new product features.o     High Growth. Key drivers being Urban and Rural. o     Government Policies in favor of Industry includes infrastructure development, reduction in excise duty and so on.

WEAKNESS o     Supply continues to outstrip Demand. Demand Cyclical and seasonal. o     Volatile performance of the agricultural sector have a negative impact on demand. The sector's performance is highly dependent on monsoon and reforms, which has failed often.

SWOT ANALYSIS: CONSUMER DURABLE INDUSTRY cont.

OPPORTUNITY o     Diversification. Developing new products for new markets.o     Easy availability of finance has stimulated consumers to buy durables.o     Changes in Consumer Outlook from spend now-save later mentality leading to high disposable income.  

THREAT o     Dozen companies operating in the white goods segment. Prices would continue to remain depressed and margins will be under pressure. o     Threats of cheaper imports from China and other South East Asian countries

SWOT ANALYSIS OF ONIDASTRENGTHApproach market through technology and high quality productsTarget is not only number driven but also about acquiring and retaining customersCreated a unique brand image for itself as a high end value driven brandTargeting the mass market WEAKNESSLess Investment is done on Promotions and Advertisement in comparison of the competitors.Now the DEVIL MAN in the advertisement is not working for ONIDA and company is not able to connect with this generation.Customers are not aware about all the products of Onida. OPPRTUNITIESThe Indian mass market.The high end value driven proposition helps in increasing market share.Growing semi urban market.Purchasing power of people is increasing day by day. THREATSIndian mass market may be captured by rival MNCs like LG, SAMSUNG and SONYDue to increased price of inputs and continuing price erosion there is downtrend in the consumer durable market

Objectives of the project

The project has been divided into two parts. One that is related with the internship work as per the guidance of the company mentor that required market visits to be carried out to different distributors and dealers to understand the way they operate and the interface between the company and them. The other part of the project is academic and deals with research, analysis and studying the various strategies that are employed by the company, its comparison with other players and so hence and so forth.

Research methodology

The research was of descriptive type. The data collection was primarily done through primary sources by carrying out the visits to the outlets of dealers and distributors, by interacting with them as well as customers etc. Moreover sufficient amount of secondary data was accessed through the internet search sources.

TYPES OF MARKETING CHANNELS

DISTRIBUTION NETWORK OF ONIDA

Onida has a very intense distribution channel. Onida’s principal assembly operations are conducted in a plant at Wada, 80km from Mumbai. Onida also has a plant at Delhi which meets the requirements of Northern region. Apart from this it has intense distribution network with 33 branch offices, 208 customer relation centers and 41 depots across India which ensures that Onida products are available on retail Shelves.   Onida also has presence in international market. With its sales and marketing office in Dubai reported 215% export growth in two years. The shipments to the Gulf contribute almost 65% of Onida’s export revenue while shipments to fast growing East African market like Uganda, Tanzania, Kenya, and Ethopia along with SAARC countries accounts for 16% of export revenue.

DISTRIBUTION NETWORK IN RAJASTHAN

Onida in Rajasthan has 6 distributor and 54 authorized dealer.

FACTORY (Mumbai)

COMPANY WARESHOUSE(JP

DISTRBUTORS

Total: 6

DEALER Total:54

CONSUMER

ONIDA DISRIBUTION NETWORK IN JAIPUR CITY

The total of distributor of Onida in Jaipur is:

• Business House

• Arora Electronics

ONIDA DISRIBUTION NETWORK IN JAIPUR CITY

Sr.

No

.

Firm

Name

Owner

Name

Company’

s Product

Product

Line

Units of

Product

Sales

force

Training Closing Scheme

Provide

d

1 Business

House

Mr.

Bhagwan

Onida

Whirlpool

Panasonic

All

Product

500 8-10 No

training

2 days Target

Scheme

2 Arora

Electroni

cs

Mr.

Deepak

Arora

Onida

Igo

All

Product

350 5-6 Formal

training

2 days Target

Scheme

ONIDA DEALERSr.No Firm Name Owner Name Onida

Product Line

Other Companies

Product

Sales

force

Training Closing Scheme Major Focus

1.Madan Aircons Mr.

Lokesh Madan

All product Sansui, Videocon 8 Formal Training 15Days Target,Cash

discounts

A.Cs

2. Agarwal

Trading

Agencies

Mr.Harish

Agarwal/

Mr.Piyush

Agrwal

All product Panasonic,

Videocon,

LG

4

Formal Training 15Days Target,

Cash Discounts

A.Cs

3. Amarjot

Electronics

Mr. Raivindra

Singh

All

Products

Samsung,

Videocon,

LG

4 Formal Training WeeklyTarget, Cash

discounts LCD TV

4.Galaxy

Electronics and

Furniture

Mr. Sanjay Yadav All Products LG, Whirlpool,

Samsung

4 Formal Training Weekend Target, Cash

disounts

LCD TV

5. Next Retail Next Retail Ltd. All Products LG, Samsung,

Phillips, Sony,

Videocon,

Etc.

7-8 Well

Trained

Target,

Cash discount

All product

Customer Service

Customer Relation CentresOnida has over 208 Customer Relationship Centers spread across India. In Jaipur City its address is as follow:Adonis Electronics Pvt.Ltd.A5, Yudhister Marg, C-SchemeNear Yojana BhavanOpposite Deer ParkJaipur302 0050141 - 3206300 5116601 / 5116602 jaipur.service@adonis.co.in

LG Distribution Network

Manufacturing Plant (NOIDA)

Company Warehouse (Jaipur)

Distributors(4)

DEALERS(21)

CONSUMER

Dealers and Distributors of LG:

The numbers of authorized dealer LG in Jaipur are 21 which are listed as follow: Silver Electronics Vaishali NagarGuman Furniture Private Limited Kalwad Road,Jhotwara Road Gupta Computers & Electronics Tonk PhatakVideon Electronics Jayanti Market,M.I.Road LG Shoppe M.I.Road Jain Electronics Jawahar NagarGanga Electronics SanganerSethi Electronics Kishanpole BazarJaipur Computers M.I.Road Vijay Investors Chandpole Bazar Gajendra & Mahindra Nehru Bazar Shri Vinayak Enterprises Malviya NagarAudio Vision Centre M.I.RoadGanesham Electrotech Malviya NagarSurya Marketing Shastri NagarShri O M Distributor Near 22-GodamS B Telelink Sansar Chand RoadS.M Appliances Shastri Nagar E-Mart India Limited Shastri Nagar Spencer's Hyper Malviya NagarMayank Electonics Sikar Road

SAMSUNGSamsung Distribution Network

Company Warehouse

Distributors

DEALERS

Manufacturing Plant (NOIDA, Sriperumbudur, Tamil Nadu)

CONSUMER

Samsung Dealers

Samsung Dealers The total number of authorized dealer of Samsung in Jaipur is 16 some of which are listed below: Samsung India Electronics Ltd Civil LinesAgarwal Trading Agencies JhotwareMahavir Electronics Jayanti Mkt, M I RdDigital Life Co MansaroverJindal Electronics Vki Area Vishwakarma Fridge Emporium Ajmer RoadSatisfaction Electronics Jayanti Bzr, M I RdAnita Electronic & Watch Co Bani Park, Laxmi Electronics Chaura RastaJain Electronics & Communications Jawahar Nagar

CONCLUSION

During the study of Sales and distribution channel used by Onida and its competitors in Jaipur city, the visits were carried out to the distributors and dealers of Ondia, LG and Samsung.

In the visit it was found that the product being manufactured at the manufacturing plant of these different companies, at their respective location before reaching to the customer passes through various distribution intermediates.According to the marketing practices, there are four different channel levels which are prevalent. They are zero level in which the manufacturer supplies the product directly to the end user, one level in which there is one selling intermediary, two level contains two intermediaries, three level contains three intermediaries. Onida follows two level channel which fits well in its distribution strategy and the infrastructure that is into existence.

First of all, after being manufactured at the manufacturing plant it goes in the company warehouse of particular region. E.g. Air condition manufactured by Onida at its Mumbai plant if has to be sold to the customer in Rajasthan than it first comes to the company warehouse of Rajasthan which is located in Jaipur city. From the company warehouse the product moves to its respective distributors who have define region for distribution. The company makes a particular firm distributor who has high potential of making dealers as it is the responsibility of the distributors to make dealers. The distributors than forwards the product to the dealers whosoever places the requirements. The distributors are provided with various in store and out store promotional inputs to promote the product which are then passed forward to the dealers. The kind of promotional inputs provided are:In Store PromotionBrochureLeafletsBannerPostersOut Door Promotion Neon Sign BoardBill Board

Apart from this the company has its own promotional budget which is spent in the form of commercial, print advertisement and also sponsors event to channelize its brand in the mind of the consumer.The Company also runs various Schemes for the distributors, dealers to motivate them to channelize their product to the customer. They are given Target benefits, Cash Discounts and various gifts for promoting the product. The company also has various schemes for the customer. After the product reaches to the customer every company has its various ways of providing after sales services so that the customer remains satisfied. The different ways of providing after sales services are:

1. Online Registration of Complain2. Service centre at various location3. Extended Warranty4. Customer Relationship Centre. 5. Annual Maintenance Contract

Recommendationi. Rural penetration

ii. Selecting channel member

iii. Training

iv. Communication

v. Performance evaluation

vi. Advertising budgets

References

Website: www.onida.com www.google.com www.in.lge.com www.samsung.com/in www.icmrindia.org www.wikipedia.org www.channelmanagement.com

Magazines:

-Pitch

-Storai

Sales and Distribution Management an Indian Perspective by . Pingali Venugopal. Sales and Distribution Management by Krishna K Havaldar & Vasant M Cavale

Marketing Management by Kotler and Jha

Marketing Management by Phillip Kotler

Marketing Management- Planning, Implementation & Control by V.S Ramaswamy & S.Namukumari

Case Studies in Marketing- The Indian Context by R. Srinivasam

Marketing Channels by Bert Rosenbloom

Thanks