Survival Stakes

Marketing Management Case Study Arun Shan S Naresh 11125

11130

Dhivya Laxmi S 11135 Harish Shankar 11140 Kaustubh Sinha 11145

Introduction
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

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

Sales in Crores

Products

Annual Sales

Figures indicate percentage of total sales for each product

BCG Matrix
QUESTION MARKS

STARS

M ar ke t gr o wt h rat e

?
Herb DOGS

Wash

Sparkle

CASH COWS Bharat

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
Occupies a niche in highly competitive market Relatively less market share Annual sales Second best product Low end Competitors Babool , Promise

SPARKLE
High-priced toilet Soap Low Sales - Positioning didnt work Erratic supply from factory Low Relative market share/ low growth rate Lacks 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

SWOT Analysis
Strength
Some products are partially doing well Bharat is earning revenue for sustenance

Weakness
Weak promotional strategies Unsuccessful Brands Lack of funds No support from parent company

Opportunities

Threats

Cost cutting by hiring temporary P&G and HUL aggressive labour force promotional strategy Ayurvedic brand image Decline in sale of Bharat can excellent scope affect the companys survival

Ansoffs Grid
Current Products New Products

Market Penetration*
Current Market

Product Development * Reformulation for Herb Promote TFM awareness Low cost detergents

Contracts with hotels Promote the ayurvedic content of brand

Bharat, Herb Market Development*

Sparkle Diversification

New Market

Institutional Customers - b2b products Backward Like hotel chains Integration Geographic penetration Related and Unrelated

Bharat, Herb
*Valid only if fund can be

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

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.

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

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

Diversificatio n

Strategy Formation
Focus on Ayurvedic products Create a Natural brand image, new 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 for products

Thank You