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Survival

StakesArun Shan S 11125

Naresh Malik 11130

Dhivya LaxmiS 11135Harish Shankar 11140

Kaustubh Sinha 11145

Marketing Management Case

Study

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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 - aherbal toothpaste, Wash- a detergent powder,

Sparkle and Bonjour, the toilet soap

Introduction

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Annual Sales

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Relative Market Share

Herb

Bharat

Wash

Sparkle

Bonjour

DOGSCASH COWS

STARS

QUESTIONMARKS

?Market

growthrate

BCG Matrix

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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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HERB

Occupy niche in highly competitive

market

Relatively less market share Average sales Second best

product

,Low end Competitors Babool

Promise

-Market Player Colgate

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SPARKLE

Highly Priced Toilet Soap

- Low Sales Positioning didn t work

Erratic supply from factory /Low Relative Market Share Low

Growth rate

Lack Differentiating Feature

,High End Competitors Lifebuoy

Lux

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BONJOUR

- Low Sales Positioning didn t work

Half dead product

Not favored by company May facedisposal

Erratic supply from factory

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WASH

Higher sales than toilet soaps

Struggling in Low price favored

market - ,Low end Competitors Henco Shudh

-Market Player Nirma

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Strategy Formation

Focus on Ayurvedic products Create a natural brand imageIntense 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 forproducts

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Market PenetrationIntense promotion ofBharatAdvertise for increased

usage(Unisex bath soap)Introduce loyalty schemesIncrease sales forceactivities

Bharat, Herb

Product DevelopmentInnovative new productsSkin specialized soapsOffer services for skin

careFabric conditioners,whitener

Sparkle

Market Development

Rural MarketInstitutional Customersgeographic penetration

Bharat, Herb, Sparkle

Diversification

b2b products BackwardIntegrationMe too products(Tooth

brush)Nail polish, remover,

Hand wash(herbal skinsafe)

New ProductsNew ProductsCurrent ProductsCurrent Products

Current MarketCurrent Market

New MarketNew Market

Ansoff s Grid

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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

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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

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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

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Diversification

b2b products like fatty products backward integrationTooth brush

Nail polish and remover

Herbal Shampoo

( ),Hand wash herbal skin safe hand sanitizer

.Products that doesn t demand aggressive advertisement

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Areas Strength Weakness Opportunity Threat

Marketing Some productsare partiallydoing well

Ayurvedicproductsexcellent scope

WeakpromotionalStrategies

UnsuccessfulBrands Lack of funds

Resources ofParent company&like R D

&P G and HULaggressivepromotional

Strategy

Excessivecompetition

Finance Bharat is earningrevenue forsustenance

Lack of funds

Low Revenue

Cost Cuttingby voluntary

retirementschemes

Divestunsuccessful

.brands

No support from.parent company

Manufacturing Established units Labour issues Hiring temporarylabour force

Changes may lead tolabor strikes

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Thank You