BARON GROUP CASE STUDY

 FOR SOLUTION CONTACT

DR. PRASANTH BE MBA PH.D. MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: prasanththampi1975@gmail.com WEBSITE: www.casestudyandprojectreports.com

The Baron group entered the Indian consumer durables market in December 1994, and the markets were never tsame again. Over the next few years, at the corporate offices of competitors like Videocon, Philips and Mirc Electronicit was the same story - they were all making frenzied attempts to hold on to declining market shares. Baron's initproduct offering, an Akai color television (CTV), was priced at Rs 13,000 - while the market price was Rs 16,500. Thwas clubbed with an exchange1 offer on old music systems and TVs and free-gift schemes whereby 14-inch CTVmobile-phones, refrigerators and Bajaj Sunny mopeds were offered free on the purchase of a 21-inch CTV.

Themoves, combined with Baron's full-page advertisements that appeared regularly in the national media, lured buyers over the country. The move changed the CTV market share pattern very soon, with Akai's sales increasing from 25CTVs in 1993-94 to 4.29 lakh CTVs in 1997-98. In December 1998, Baron repeated the success story with the Aiwbrand in the hi-fi audio systems segment.

Within 5 months of the launch, Aiwa replaced Philips as the segment leadgarnering a 45% market share, as compared to Philips' 17.2% share. The launch of the TCL range of consumelectronics in 1999 also took the market by storm as the China based TCL was known for its dirt-cheap products. Walmost every new scheme and every new tie-up, Baron unleashed a new war in the Indian consumer electronics markA majority of the players began indulging in 'one-upmanship' on the pricing and promotion fronts. However, they soorealized that it was not very easy to match Baron's schemes and prices. The question on everyone's mind was tsame. How did Baron do it?

The Mulchandani family (Baron group)had started its consumer electronics business in t1970s. The group began with marketing and distributing products under the Bush brand name. Under the leadership J.R.Mulchandani, Bush emerged as one of the top brands in the audio cassette player market. However, in the next twdecades, Bush failed to withstand the onslaught of companies that were financially superior and had greater marketisavvy.

Answer the following question.

Q1.Give detailed reasons for the boost in sales of Akai color televisions marketed by The Baron group.

Q2.What was the marketing strategy adopted by the Baron group to boost sales.