VIBHAVA Chemicals Case Study

Marketing Management Assignment

(02/11/2012)
By Group-2 Abhilash.C.N.A Ambady.M.M Govardhan.V Josyula Krishna Sriram T.E Thiyagarajan.P Varun Pandey

Q1. What according to you are the problems faced by Vibhavas Black Belt brand?

Q2. Analyze Vibhavas response to Domexs attack?

Q3. Define the segmentation and positioning strategy for Black Belt. Would you recommend changing it? Segmenting

Positioning

We would recommend changing the positioning of Black Belt (as mentioned above) so that it can withstand the heavy competition from MNCs like HUL (DOMEX).

Q4. Select one of the strategic options presented in the case and state your reasons for selecting the option for meeting short term goals. Does it have long term impact on Vibhavas product portfolio?

According to the calculation mentioned below, we only have to achieve the extra 111 Million target by end of this year and for that we are going to use a mix of Strategies: Strategy #1-we will intensify Promotional efforts for Ozone floor cleaner because we have the existing goodwill & Public-Relations with the distributors and retailers. Also, we have home advantage in the market (Hubli). By intensifying our promotional efforts, we can get the sales up by 25.5 million and we will have the net profit of 5 Million. The calculations are given below for the same. OZON E Sales (In Millio ns) 130.5 300

YEAR 201011 201112

Increase in Sales (In Millions) Profit % for Ozone Increase in Profit (In Millions) Promotional Expense (In Millions) Net Profits (In Millions)

169.5 15% 25.42 5 20 5.425

Actual

Predict ed

Year 2007 08 2008 09 2009 10 2010 11 2011 12 2012 13

Year Index 1 2 3 4 5 6

Sales 174.5 249.1 355.6 507.6 724.4 1034.0

Actual Sales 180 240 360 520

Project ed Growt h Rate

Actua l Grow th Rate

HCA SALE S 72

42.73 42.73 42.73 42.73 42.73

33.33 50.00 44.44

96 144 208 289.7 6

Strategy #5- We will expand our market geographically as we already have the distributers channel for the same and we will target the rural population as MNC are not present in that segment hence there is less competition in this segment and also only generic products are available for HCA market in Rural Market. We have the advantage of economies of the scale against the generic products and we can give the customers more benefits for fewer prices as compared to the generic products. Also, the Governments hygiene enhancement campaigns will increase the sales of the cleaning products in the rural market. Please see below the market for the Specialty and traditional products with branded and generic products.