Post on 05-Apr-2018
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UJALA
The Supreme Whitener
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Ujala entered the market in 1983 marketed by Jyothi Laboratories.
It introduced a different variant in whitener segment, violet colored liquid that
dissolved easily in water.
The main competitor was Robin blue (market leader during that time).
By the end of 2002, it emerged as a market leader in whitener segment of
Indian fabric care industry (market share was more than 60% by the end of 2001).
It created a strong rural distribution network across the country with 4000
distributors and 2.5 million retailers.
Jyothi spent vigorously on promotional activities and their campaign was very
successful.
They have now diversified into other segments of FMCG sector.
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Liquid variant – better product Strong distribution network in
rural area
Large market – Indian psychology
B2B transactions with hotels,railways, airlines, etc.
Competition from existing
players Imitators
Technological development can
make product usage obsolete
SWOT ANALYSIS
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QUESTION 1:
Analyze the conditions prevailing in the Indian fabricwhitener market when Jyothi laboratories entered the
whitener segment. Focus separately on each element of the
marketing mix, explain how and why the company’s moves
helped Ujala become the market leader?
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Product Description – It’s a product which compliments the use of detergents by making white clothes
brighter.
Its basically is in blue powdered form.
Key players
Robin Blue
Market leader, Marketed by R & C, first player in organized sector
Used by limited number of brand conscious urban consumers
No defense strategies – no major marketing efforts , no significant development in
product.
Ranipal – Confined to limited geographical area.
Other small manufactures – Selling at very low prices.
None of the players tried to fill the gap between customer needs and the product, through
product innovation or product development
PREVAILING MARKET
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PRODUCTWHITENER – violet colored liquid
Serving customer needs in a better
way :
•It was easily and uniformly soluble in
water
• Wastage was reduced
PRICEUjala was priced higher than robin
•At 8 for 75 ml, whereas robin was
priced at 7 for the same quantity
•Marginal utility of money was higher
compared to Robin Blue
PROMOTIONAdvertisement over FM radio, state-
owned AIR and TVRegionalized the content of
advertisement
Used the jingle “ aya naya ujala chaar
boondon wala”
No limitation on advertising budget
PLACEFocused on rural markets(flank
attack)
Captured south India market first
(acquired 90% share in Tamilnadu and
Kerala) and then went national
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QUESTION 2:
Critically comment on the rationale underlying jyothi’s
decision to diversify into other segments of the FMCG
sector. Do you think jyothi will find it difficult to replicate
ujala’s success with its new products? Justify your answer.
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•Market reached saturation point
•
Reduce dependency on flagship product – with technological development, the usage of product might become obsolete.
•With diversification, during economic slowdown, the company would remain
relatively unaffected.
•The well established distribution network can be a great help for diversifying
into FMCG.
•Well known brand identity.
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•
High competition across all products- especially POST LPG•Product value
Unlike ujala’s magic most of the FMCG products now cater to
the need of customers and there is very little gap which JLL
would find hard to fill.
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QUESTION 3:
What strategies do you recommend for the brands Exo,
Maxo coil, Maya and Jeeva in competitive market and why?
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MAXO COIL•PRODUCT LINE EXTENSION
Launch liquid vaporizer- easy to use and store, no smoke.
• They should come up with different sizes to fit in the budget of
customers
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EXO-DISHWASHING BAR
•Product line extension
Launch a liquid variant, easy to store and reduced wastage.
•Expand Geographically-It should be launched across the country because
Banana leaf is widely used in south India.
MAYA- INCENSE STICK
• One packet consisting of different fragrances.
• Increase the margin for the dealers.
•Try selling to temples.
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JEEVA – AN AYURVEDIC SOAP
Differentiate the product from that of the competitors’ – for e.g.- placeit as an ayurvedic medicinal product; get certification from doctors,laboratories; promote on the basis of key ingredients.
Provide margins to intermediaries
Target and focus on a particular section of customers..