Topics: Brand, Brand management, Brands Pages: 3 (816 words) Published: January 20, 2014
Brand Failures – The case of AIWA

Over the years, branding has become an integral part and parcel of any organization’s activity. The companies have realized that it might be difficult to survive without establishing a brand in the market. Therefore, all the initiatives are being taken by the companies to create a strong brand image and over power the competitors. However, the last few years have also revealed many cases of brand failures in the Indian landscape. Aiwa, one the big names in the electronics segment, has experienced a failure in establishing its brand in India and has faced the consequences. The case of AIWA

Over the years, AIWA has created a brand name for itself in the market being a leading manufacturer of audio products, including headphone stereos, stereo systems, portable stereo systems, minidisc players, CD and cassette players, and car stereo systems. Approximately 86 percent of company revenues are a consequent from such audio products. The company also manufactures and sells visual products, such as VCRs, color televisions, DVD players, and digital satellite television tuners; this sector derives revenue for about 12 percent of sales. Aiwa was the company that introduced first Japanese cassette tape recorder in 1964. The brand Aiwa enjoys the legacy of more than 58 years of operation in the global markets. Aiwa’s entry into the Indian markets was marked by aggressive pricing strategy to penetrate and capture a major portion of the market. In the initial phases of its operation in India, Aiwa realized that the customers are money conscious and always look for value for money in whatever product or service they wish to buy. Taking this into consideration, most of the products were sold at a price that was easily affordable by middle classes. It used sophisticated technology to manufacture its product thereby reducing the cost at every stage of production which enabled them to transfer the benefit to the customers....
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