Survival Stakes

Marketing Management Case Study Arun Shan S Naresh Malik 11125 11130

Dhivya LaxmiS 11135 Harish Shankar 11140 Kaustubh Sinha 11145

Introduction
Western India Cosmetics (WIC), a cosmetic Company whose future is at stake 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

Excelsior WIC
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

Annual Sales

Annual Sales

BCG Matrix
QUESTION MARKS Herb

Bharat STARS

M ar ke t gr o wt h rat e

?
DOGS

Sparkle

Wash CASH COWS

Bonjour Relative Market Share

BHARAT
Medium priced Ayurvedic ethnic soap Bread and Butter of WIC No threat of closing down Competitor Chandrika, Mysore Sandal, Santoor

HERB
Occupy niche in highly competitive market Relatively less market share Average sales Second best product Low end Competitors Babool, Promise Market Player - Colgate

SPARKLE
Highly Priced Toilet Soap Low Sales - Positioning didnt work Erratic supply from factory Low Relative Market Share/ Low Growth rate Lack Differentiating Feature High End Competitors Lifebuoy, Lux

BONJOUR
Low Sales - Positioning didnt work Half dead product Not favored by company May face disposal Erratic supply from factory

WASH
Higher sales than toilet soaps Struggling in Low price favored market Low-end Competitors Henco, Shudh Market Player - Nirma

Strategy Formation
Focus on Ayurvedic products Create a natural brand image Intense promotion of Bharat for generating Cash for company Innovative new products must be introduced

Bharat, Herb Market Penetration, Market Development Sparkle Product Development Bonjour and Wash - Divest

Strategy for products

Ansoffs Grid
Current Products New Products

Current Market

Market Penetration Product Development Intense promotion of Innovative new products Skin specialized soaps Bharat Advertise for increased Offer services for skin usage(Unisex bath soap) care Introduce loyalty schemes Fabric conditioners, Increase sales force whitener Market Development Diversification activities

New Market

Rural Market Bharat, Herb Institutional Customers geographic penetration

Bharat, Herb, Sparkle

b2b products Backward Sparkle Integration Me too products(Tooth brush) Nail polish, remover, Hand wash(herbal skin safe)

Market Penetration
Advertise the herbal soap as unisex brand Loyalty schemes , sales promotion, free samples Increase sales force activities with the help of Excelsior Advertise the specialty of sparkle Herb - Sachets , free tooth brush, sales promotion Small size soaps, toothpastes at tourist centers, railway stations, bus stands and hospitals helps generate fund though not the market share

Market Development
Selling product at rural markets Take the product where the competitors have low hand (north India) demographic penetration Ayurvedic content - biggest advantage for institutional selling via small parlors, cosmetic shops and hostels Helps to generate funds for aggressive promotion

Product Development
Sparkle can be reformulated (based on TFM) to compete as Bath soap Produce soaps specialized for each skin type. Bring awareness on TFM which major players are not doing Tele-consultancy services for Barath, Herb. Fabric conditioner ,whitener, stain remover synergy with Wash Bring in promising quality in herb to promote it .

Diversification
b2b products like fatty products backward integration Tooth brush Nail polish and remover Herbal Shampoo Hand wash(herbal skin safe), hand sanitizer Products that doesnt demand aggressive advertisement .

Areas Marketing

Strength Some products are partially doing well

Weakness Weak promotional Strategies

Opportunity Resources of Parent company like R&D

Threat P&G and HUL aggressive promotional Strategy

Ayurvedic products excellent scope

Unsuccessful Brands Lack of funds

Excessive competition

Finance

Bharat is earning revenue for sustenance

Lack of funds Low Revenue

Cost Cutting by voluntary retirement schemes

No support from parent company.

Divest unsuccessful brands.

Manufacturing

Established units

Labour issues

Hiring temporary Changes may lead to labour force labor strikes

Thank You