Download - Survival Stakes Revised
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8/6/2019 Survival Stakes Revised
1/19
Survival
StakesArun Shan S 11125
Naresh 11130
Dhivya Laxmi S 11135Harish Shankar 11140
Kaustubh Sinha11145
Marketing Management Case
Study
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8/6/2019 Survival Stakes Revised
2/19
Western India Cosmetics (WIC), acquired by Excelsior
Manufacturing operations carried on at Aurangabad
(Maharashtra)
Product : Bharat- an ayurvedic soap, Herb - a herbal toothpaste,
Wash- a detergent powder, Sparkle and Bonjour, the toilet
soap
The survival of the company at stake
Introduction
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8/6/2019 Survival Stakes Revised
3/19
Excelsior 1000 Crore company
Core Business: Liquor
Reasons for this acquisition Contraction in liquor market
Post - Liberalization competition in the liquor market
Planning for diversification
Relation with WIC is in question
ExcelsiorWIC
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8/6/2019 Survival Stakes Revised
4/19
Annual Sales
Sales in Crores
Products
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8/6/2019 Survival Stakes Revised
5/19
Annual Sales
Figures indicate percentage of total sales for each product
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8/6/2019 Survival Stakes Revised
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Relative Market Share
Herb
Bharat
WashSparkle
Bonjour
DOGSCASH COWS
STARS
QUESTIONMARKS
?Market
growthrate
BCG Matrix
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8/6/2019 Survival Stakes Revised
7/19
BHARAT
Medium priced Ayurvedic ethnic soap
Bread and Butter of WIC
No threat of closing down , ,Competitor Chandrika Mysore Sandal Santoor
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8/6/2019 Survival Stakes Revised
8/19
HERB
Occupies a niche in highly
competitive market
Relatively less market share Annual sales Second best product
,Low end Competitors Babool
Promise
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8/6/2019 Survival Stakes Revised
9/19
SPARKLE
-High priced toilet Soap
- Low Sales Positioning didn t work
Erratic supply from factory /Low Relative market share low
growth rate
Lacks differentiating feature
,High End Competitors Lifebuoy
Lux
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8/6/2019 Survival Stakes Revised
10/19
BONJOUR
- Low Sales Positioning didn t work
Half dead product
Not favored by company May facedisposal
Erratic supply from factory
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8/6/2019 Survival Stakes Revised
11/19
WASH
Higher sales than toilet soaps
Struggling in Low price favored
market - ,Low end Competitors Henco Shudh
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8/6/2019 Survival Stakes Revised
12/19
Strength
Some products are partiallydoing well Bharat is earning revenue forsustenance
Weakness
Weak promotional strategies Unsuccessful Brands Lack of funds No support from parent company
Opportunities Cost cutting by hiring temporary
labour force Ayurvedic brand image
excellent scope
Threats
&P G and HUL aggressivepromotional strategy
Decline in sale of Bharat can
affect the company s survival
SWOT Analysis
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8/6/2019 Survival Stakes Revised
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Market Penetration*
Contracts with hotelsPromote the ayurvedic
content of brand
Bharat, Herb
Product Development *
Reformulation for HerbPromote TFM awareness
Low cost detergents
SparkleMarket Development*
Institutional Customers -
Like hotel chainsGeographic penetration
Bharat, Herb
Diversification
b2b products Backward
IntegrationRelated and Unrelated
New ProductsNew ProductsCurrent ProductsCurrent Products
Curr
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Ma
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Curr
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Ma
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New
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New
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Ansoff s Grid
* Valid only if fund can be
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8/6/2019 Survival Stakes Revised
14/19
Market Penetration
Advertise the herbal soap as unisex brand , ,Sales promotion free samples along with magazines if funded by
Excelsior
- - Advertise the all day freshness specialty of sparkle
- , ,Herb Sachets free tooth brush sales promotion
( )Try promoting usage in premium hotel chains by contracts and
in crowded tourist centers
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8/6/2019 Survival Stakes Revised
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Market Development
(Take the product where the competitors have low hand north
) India geographic penetration
-Ayurvedic content biggest advantage for institutional selling
via cosmetic shops and hotels
,Bharat being ethnic medium priced soap can be promoted by.contracts with Elite hotels
.Sparkle can be promoted using the same network as well
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8/6/2019 Survival Stakes Revised
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Product Development
( )Sparkle can be reformulated based on Total Fatty Matter to
compete as Bath soap
Bring awareness on TFM which major players are not doing
, [Bring in a promising quality in herb like clove oil medicinal
]effect Wash can be reformulated to reach market in low cost packs to
-compete the low end products
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8/6/2019 Survival Stakes Revised
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Diversification
b2b products like fatty acids Backward integration -Nail polish and remover Unrelated
( ), Hand wash herbal skin safe hand sanitizer Related
, -Fabric Conditioner Stain remover Related
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8/6/2019 Survival Stakes Revised
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Strategy Formation
,Focus on Ayurvedic products Create a Natural brand imagenew SBUs can target markets in this regard
Promotion of above strategy using funds raised by reducing cost
,of production if not supported by Excelsior
, ,Bharat Herb Market Penetration Market Development
Sparkle Product Development
Bonjour and Wash Divest
Strategy forproducts
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8/6/2019 Survival Stakes Revised
19/19
Thank You