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A Case Study
BY SANGHPRIYA GAUTAM SIDDHARTH M SARVOTTEMA VISHAKHA SAMDISHA SAHNI
Executive Summary
FMCG industry is the most emerging industry nowadays in Indian as well as global market. In India it is the 4th largest market, which shows that how important the industry is and how much it contributes towards our economy. FMCG includes the personal care products also like soaps, shampoos, etc. so our case-study mainly focuses on the market and study of Laundry SOAPS IN INDIA. It consists various multi national and domestic companies. Major players are Unilever(HLL), Nirma, Godrej, Johnson & Johnson, colgatepalmolive, etc. The detergent market is gradually developing very fast and day by day many new varieties, flavours, and fragrances, are added in it by various companies to exist in the market which gives tough competition to our local and domestic laundry soap company-Ravi Soap Factory .
Executive Summary
Our project consists study of 3 major players of laundry soap market and their SWOT analysis, BCG Matrix, 5 forces model of the industry and the companies. Various suggestions and recommendations are also been given to the Ravi Soap Factory. HLL is the most dominating company across the world in FMCG sector due to its vertical and horizontal integration. Then also Nirma and P&G are trying to give tough fight to it. Main mantra for success of the companies is the diversification of their business and their products. Thus the study provides detailed study of FMCG sector with focus on the Ravi Soap Factory.
INTRODUCTION
History of Ravi Soap Factory
Ravi Soap factory was established in 1980 at Rudrapur (now in Uttranchal) by Mr. Ram Singh. Mr. Ram Singh, a kirana merchant migrated from Pakistan at the time of partition. Mr. Ram Singh- ambitious, hardworking and social
Annual sales of the Ravi soap factory. (A SSI Unit Manufacturing, Non Detergent washing soap)
HLL
HLL worked hard to expand the detergent market by familiarizing potential users. Salesmen toured the villages in vans and, like high priests, preached to villagers about the usefulness and importance of Surf in daily life and its advantages over other soaps: Surf has more lather and is more soapy than any other soap HLL also ran advertisements showing how clothes could be washed by soaking them in a bucket containing detergent dissolved in the water.
Product Characteristics
Products belonging to the FMCG segment generally have the following characteristics: They are used at least once a month They are used directly by the end-consumer They are non-durable They are sold in packaged form They are branded
HLL
67
Godrej
10
Nirma
Colgate Palmolive
14
Present Scenario
With the increasing use of washing machines by the people in Terai region it was easy to use detergent powder though the detergent powder may cause some skin related problems. After looking at the declining sales graph of his company in 2008-09 Mr. S Singh also decided to advertise his products in the Cinema Halls. But this strategy did not work. After this Mr. S. Singh is thinking to manufacturer the detergent powder (NSD powder). The key challenge in the manufacturing process lay in producing a consistentquality product over large volumes and long time periods.
1-What can be suggested to Mr. Singh to increase the sales of Ravi soap factory? 2- Should Mr. Singh invest in the new technology of NSD or not?
SWOT ANALYSIS
Strengths: Quality product at low price. The existence of S.P. Solvent Plant in the same city. Monopoly in agricultural regions. Strong distribution network. The availability of cheap labour.
SWOT ANALYSIS
Weaknesses: For distribution of goods outside the city the company is totally dependent on external transport agencies, which are not reliable ones. The factory does not have NSD powder plant The factory is not aggressively advertising its products and is not able to build a brand name for itself to boost the sales of its products. No marketing manager in its organizational structure Old methods of computing and management
SWOT ANALYSIS
Opportunities: Long established network Proximity to various rural areas Digitialization
SWOT ANALYSIS
Threats: Rising need and demand for detergent Competitors rising in the area by aggressive marketing HLL, NIRMA, P&G penetrating the area Laundry cake becoming obsolete
Marketing Campaigns
ATL
BTL