Consumer Products Limited

Case study

Agenda

• Company profile.• Profit analysis of washing product group(WPG).• Dazzle• Product life cycle• Summary• Spark• Impact of Spark• Objectives• Alternatives.• thankyou

Company Profile

• Public limited company set up in 1940.• Authorized Capital-10 Crores• Product: FMCG, Washing Products– Washing Powder.– Washing Soap.

• Company’s main product- Dazzle(Accounted for 1/3 of the profits).

Exibit -1

Rs 500

Sales

10%

20%

70%

Profit Analysis of WPG.

• Maximum percentage of sales for the company, in case of Washing Product Group(WPG).

• Profitability of WPG is higher-a profitable division for CPL.

Soaps

• Own by SSI unit.• Localized area supply.• Contributed ¾ th i.e. 75 % to WPG.

Dazzle

• Contributed 1/3 of the profits WPG, i.e. 26.7%• Contribute 12% of turnover.• Position of dazzle in BCG Matrix.– Star position.(Huge growth & share).

Product Life Cycles Sales

TimeFor Washing powder

Summary

• WPG: important for CPL.• Dazzle:12% of turnover=26% profit of CPL• Washing powder: Urban Product &

bottlenecks in distribution• PLC: early maturity for washing powder

Spark

• Introduced a 700gm pack same price of dazzle.• Coupon system.• 6 coupon = one bucket (promotional strategy).

Impact of sales promotion by spark

Loss

15%

30%

29%

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Objective of Dazzle

• Get back the customers (15% of 26.7%).• Increase sales.• Get back customers from Bright & White also.

Alternatives

• Match sales promotion.• Price cutting.• Increase prices.• Expand distribution.• Low price brand.• Theme advertisement.

Thank You