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8/2/2019 Case Study Mm
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Case Study
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Karamchand Appliances Pvt. Ltd. (KAPL)
KAPL’s Brand ‘All Out’ is almost a generic name for liquid
vaporizers.
Liquid Mosquito Vaporizers is a 4 Billion Segment in India
with ‘All Out’ having 69% market share in 1999.
KAPL managed to wrest market share amidst stiff
competition from corporate giants like Godrej Sara Lee Ltd
(GSLL) and Hindustan Lever Ltd (HLL).
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All Out : Yamraj of Mosquitoes was launched in 1990 by a small
company known to the world as KAPL.
It was run by the Arya Brothers :Naveen, Anil, Bimal whospotted this Mosquito Repellant Business to be their GoldenGoose.
Tie ups with a Japanese company, Earth Chemicals Co. Ltd. forthe technology.
The product consisted of a heating unit and small container of chemicals.
The product was found to be much more effective than mats.
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The launch of All Out in 1990, started becoming popular.
In the mid 90’s KAPL attained a share of 5% of the total
mosquito repellents sold.
The reason for the success of KAPL, because the othercompanies were concentrating on mats and coils.
The sales of vaporizers segment reached about 253 million
in 1996-97 which was dominated by KAPL.
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Technological Innovations
Aggressive Marketing
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Invested heavily in other categories while ALL OUT had a
single point focus Could not catch up with the advertising challenges poised
by ALL OUT
Entry into Vaporizer segment led to over all expansion of
the market.
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65%
24%
7%
4%
All out Good Night Mortein Others
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STRENGTH
Advertising strategy
Japanese wick technology
Hassle free
Lasts longer
Pricing
WEAKNESSES
Harmful effects of
chemicals
Advertising criticized by
the industry
Major profits only through
1 product
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OPPORTUNITIES
Diversification of products
◦ Mosquito repellent spray
◦ Coils
◦ Creams
Electric racquets
Ultrasonic sound devices
THREATS
Dependence on a flagship
product for now
Advent of new substitutes
in the market
Can lose out on a market
where there is no electricity
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Product:
First of its kind –New Variety
Technologically sound
Vibrant Product Features
High Quality Packaging
Place
Easy accessibility
KAPL- `P’ stands for Place
Fought against well established multi-product giants
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Price
Price was initially high to cover the cost of initial investment
Flexible Pricing Strategy
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Unconventional Advertising Strategy:
Hindi Movie Video Cassettes FM Radio
Evening News Program/ Test Cricket Commentary
During Kaun Banega Crorepati ads
Series of failed ads by agencies followed by cost
effective approach by promoters
Adapting Ideas from parent Company
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o Higher number of cases with diseases caused bymosquitoes in India accounting for:
1.3 million cases and 610 deaths by malaria.
12419 cases and 80 deaths by dengue.
4482 cases and 774 deaths by encephalitis
o Vaporizers used the most with 22.4% in metros, 16.6% inurban areas and 6.9% in rural areas as on 2000
o The increasing population at a growth rate of around 9%
is also a major promoter of this business
o Improvement in literacy and health consciousness in ruralareas can lead to higher sales
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Agency Avenues came up with a baseline, “ All Out for modernmosquitos” to make its presence, which was a later rejected
The advertisement account shifted to HTA who released a series of six
ads using humor to promote the product, which was again a big failure
KAPL decided to take the ads on its own and then launched the
animated Japanese man eating mosquitoes which made a huge impact
on the company’s sales
The ad costed Rs.50000 to KAPL
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Ads on Videocassettes of Hindi Movies- lead to beingcriticized as ‘down-market
Cost a fraction due to around 20 duplications of
videocassettes in grey market.
However the above strategies, resulted in the brandattaining a very high mind-share amongst consumers.
Share of Voice (SOV) for All Out = 31% , whereas
SOV for Good Knight = 5%.
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Decrease the use of toxic compounds Launch new design for its products
Spend more money on attractive advertisement and marketing
Make it an environmental friendly product
Reduce its price against competitors with good quality Advertise new schemes like “deadly exchange offer”
Launch new products to meet the competitors and customers
demand
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