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Videocon's Multi Branding Strategy Overview

Videocon adopted a multi-branding strategy to market similar consumer durable products under different brand names like Electrolux, Kelvinator, Kenstar, Akai, Hyundai, Sansui, and Toshiba. This allowed Videocon to cater to various market segments, obtain greater shelf space, saturate the market, and attract brand-switchers. While multi-branding involves high costs and risks of cannibalism, it helped Videocon gain a 30% market share by avoiding cannibalism and focusing each brand on specific product categories and price segments. Videocon supported its multi-branding through backward integration of manufacturing facilities and forward integration of its distribution networks.

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22 views16 pages

Videocon's Multi Branding Strategy Overview

Videocon adopted a multi-branding strategy to market similar consumer durable products under different brand names like Electrolux, Kelvinator, Kenstar, Akai, Hyundai, Sansui, and Toshiba. This allowed Videocon to cater to various market segments, obtain greater shelf space, saturate the market, and attract brand-switchers. While multi-branding involves high costs and risks of cannibalism, it helped Videocon gain a 30% market share by avoiding cannibalism and focusing each brand on specific product categories and price segments. Videocon supported its multi-branding through backward integration of manufacturing facilities and forward integration of its distribution networks.

Uploaded by

aruna2248
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Multi Branding Strategy

VIDEOCO
N
Multi branding
 Multi branding is basically the process of
marketing of two or more similar and
competing products by a firm under
different brand names
 Advantages?
 Disadvantages?
Multi branding
 Advantages:
Can easily cater to various segments
Obtain greater shelf space
Saturating a market by filling all price and
quality gaps
Catering to brand-switchers
 Disadvantages
Cannibalism
Involves huge costs
The market
 Consumer durables scenario in 1990’s
 Entry of Korean brands
LG, Samsung etc
 Competition issues
 What did the existing players do?
Onida – Igo
BPL – Evelux
What Videocon did?
 Adopt multi branding strategy
 Obtains marketing rights of various
brands
 Each brand was operated as an
individual SBU
Videocon’s strategy
Videocon India Ltd

Electrolux Kelvinator Kenstar Akai Hyundai Sansui Toshiba


Products offered
How does the multi branding
help?
Videocon Electrolux Kelvinator Sansui Kenstar

Washing Frost free Direct cool fridge TV Small


machine, AC, refrigerators and appliances and
TV microwaves air cooler
How does the multi branding
help?

Helps Videocon
focus on specific
products through
separate brands
How does the multi branding help?

Toshiba Videocon Sansui Akai

Premium Mid price Low price Low price


price
How does the multi branding help?

Helps Videocon cater to


different price segments
of the market
Advantage Videocon
 Now has 30% of market share in Indian
consumer durables market
 Avoided cannibalism successfully
 Top performing brands under VIL
1. Videocon
2. Electrolux
3. Kenstar
4. Kelvinator
How does Videocon support multi
branding?
 Backward integration
Videocon has the largest production
capacity in consumer durables. => must
have high volume of sales
Acquisition of various manufacturing
facilities like Thomson CPT, plants of Philips,
Electrolux, setting up CRT plant, compressor
manufacturing unit etc
How does it support this multi branding?

 Forward integration
Setting up its own distribution networks -
Digi world, NEXT, Planet M
 Diversified investments
Ravva oil fields
What Videocon is upto now?
 Brand makeover – the fluid ‘V’
 Plans to integrate the individual SBUs
 Killing unsuccessful brands like Hyundai
 Concentrate on international markets
 Talks going on to manufacture and
market Phillips CTV
Thank You!

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