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Case 1

The document outlines the challenges faced by a distribution house that transitioned to manufacturing its own toothpaste brand, 'Success', after losing a profitable agency. Despite initial success, issues with packaging led to complaints and a decline in sales, exacerbated by a lack of advertising and ineffective marketing strategies for new products. The company ultimately struggled with its brand image and product launches, leading to the abandonment of both the 'Success' and 'Victory' product lines.

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9 views1 page

Case 1

The document outlines the challenges faced by a distribution house that transitioned to manufacturing its own toothpaste brand, 'Success', after losing a profitable agency. Despite initial success, issues with packaging led to complaints and a decline in sales, exacerbated by a lack of advertising and ineffective marketing strategies for new products. The company ultimately struggled with its brand image and product launches, leading to the abandonment of both the 'Success' and 'Victory' product lines.

Uploaded by

agarwalnaman445
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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A distribution house was handling a number of consumer products of reputed

companies, acting as their selling agents. The products were marketed by


the company under the brand names of their respective manufacturing
concerns. The company lost a profitable agency since the distribution of the
products was taken over by the manufacturer himself.

Based on its past experience on similar lines, the company introduced a


tooth paste in the market manufactured by itself, under the brand name of
“success”. At this point of time “c” was the brand leader in the tooth paste
market, followed by ‘B’ and ‘F’. When ‘Success’ of ‘Large’ size was launched
initially, the distribution was fantastic, in both the rural and the urban
market. The coverage was extensive and the consumer response was very
encouraging. The product was much in demand in all the retail outlets,
including pan shop. However, after sometime, the company started getting a
number of complaints related to packaging. The caps used were unable to
withstand the transportation, due to which the contents from the tubes were
leaking out. Without correcting these problems the company launched
various sizes of tooth paste like ‘Giant’ and ‘Economy’ under the same brand
name ‘Success’. Simultaneously, the company introduced new range of
products like talcum powder, Hair Cream, Toothbrush and shaving cream. All
these products were manufactured by the company itself. At the time of
launching these products, the company was already marketing shaving
cream and tooth brush under different brand names with regular trade
schemes. But the company did not operate any attractive dealer scheme for
the ‘Success’ range of products and the sudden spurt in the number of
products handled did not have the requisite advertising back-up.

The company began to notice a sudden decline in the sales of the newly
introduced products. At this stage, the company also introduced the
‘Success’ tooth powder in two different sizes. During this period the supplies
of the brand leader ’C’ were irregular and restricted. The other two
toothpaste manufacturers, viz, ‘B’ and ‘F’ did not have tooth powder.
Therefore, ‘Success’ tooth powder started moving well in the market.

The company again launched a new series of similar products except tooth
paste under a new brand name ‘Victory’. This turned out to be an utter
failure due to poor marketing strategies, which adversely affected the
company’s image.

The company appointed a new professional marketing chief, who decided to


go in for yet another range of cosmetic products groundling the ‘Success’
series of products, out of the market. The new venture also proves to be a
futile exercise, and the Victory range of products also had to be abandoned
finally.

Identify the problems in the case study given above.


Provide actionable alternatives and solutions to the case study above.

*****

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