8/6/2019 Survival Stakes Revised

1/19

Survival

StakesArun Shan S 11125

Naresh 11130

Dhivya Laxmi S 11135Harish Shankar 11140

Kaustubh Sinha11145

Marketing Management Case

Study

8/6/2019 Survival Stakes Revised

2/19

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

Introduction

8/6/2019 Survival Stakes Revised

3/19

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

ExcelsiorWIC

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4/19

Annual Sales

Sales in Crores

Products

8/6/2019 Survival Stakes Revised

5/19

Annual Sales

Figures indicate percentage of total sales for each product

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6/19

Relative Market Share

Herb

Bharat

WashSparkle

Bonjour

DOGSCASH COWS

STARS

QUESTIONMARKS

?Market

growthrate

BCG Matrix

8/6/2019 Survival Stakes Revised

7/19

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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8/19

HERB

Occupies a niche in highly

competitive market

Relatively less market share Annual sales Second best product

,Low end Competitors Babool

Promise

8/6/2019 Survival Stakes Revised

9/19

SPARKLE

-High priced toilet Soap

- Low Sales Positioning didn t work

Erratic supply from factory /Low Relative market share low

growth rate

Lacks differentiating feature

,High End Competitors Lifebuoy

Lux

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10/19

BONJOUR

- Low Sales Positioning didn t work

Half dead product

Not favored by company May facedisposal

Erratic supply from factory

8/6/2019 Survival Stakes Revised

11/19

WASH

Higher sales than toilet soaps

Struggling in Low price favored

market - ,Low end Competitors Henco Shudh

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12/19

Strength

Some products are partiallydoing well Bharat is earning revenue forsustenance

Weakness

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

Opportunities Cost cutting by hiring temporary

labour force Ayurvedic brand image

excellent scope

Threats

&P G and HUL aggressivepromotional strategy

Decline in sale of Bharat can

affect the company s survival

SWOT Analysis

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13/19

Market Penetration*

Contracts with hotelsPromote the ayurvedic

content of brand

Bharat, Herb

Product Development *

Reformulation for HerbPromote TFM awareness

Low cost detergents

SparkleMarket Development*

Institutional Customers -

Like hotel chainsGeographic penetration

Bharat, Herb

Diversification

b2b products Backward

IntegrationRelated and Unrelated

New ProductsNew ProductsCurrent ProductsCurrent Products

Curr

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Ma

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Curr

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Ma

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New

Ma

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New

Ma

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Ansoff s Grid

* Valid only if fund can be

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14/19

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

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15/19

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

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16/19

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

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Diversification

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

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Strategy Formation

,Focus on Ayurvedic products Create a Natural brand imagenew 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 forproducts

8/6/2019 Survival Stakes Revised

19/19

Thank You