Scribd Logo
Upload

Welcome to Scribd!

  • 481 views

    Survival Stakes

    Uploaded by

    Shonit Mittal
    1) Excelsior Group acquired Western India Cosmetics (WIC) to diversify beyond its core liquor business, which faces regulatory threats in some states. 2) WIC struggles with unsuccessful brands, lack of product differentiation, labor issues, and inconsistent parent company support. Its top brands like Bharat soap and Herb toothpaste face intense competition. 3) An analysis using Ansoff's Matrix recommends strategies like market penetration for top brands, product development or reformulation for others, and market or product diversification to expand the business. 4) The document raises questions around whether WIC should phase out existing brands, strengthen its business through integration, or sell assets to cut losses

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd

    Survival Stakes

    Uploaded by

    Shonit Mittal
    481 views12 pages
    1) Excelsior Group acquired Western India Cosmetics (WIC) to diversify beyond its core liquor business, which faces regulatory threats in some states. 2) WIC struggles with unsuccessful brands, lack of product differentiation, labor issues, and inconsistent parent company support. Its top brands like Bharat soap and Herb toothpaste face intense competition. 3) An analysis using Ansoff's Matrix recommends strategies like market penetration for top brands, product development or reformulation for others, and market or product diversification to expand the business. 4) The document raises questions around whether WIC should phase out existing brands, strengthen its business through integration, or sell assets to cut losses

    Original Description:

    ppt on the case study of survival stakes (marketing)

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    1) Excelsior Group acquired Western India Cosmetics (WIC) to diversify beyond its core liquor business, which faces regulatory threats in some states. 2) WIC struggles with unsuccessful brands, lack of product differentiation, labor issues, and inconsistent parent company support. Its top brands like Bharat soap and Herb toothpaste face intense competition. 3) An analysis using Ansoff's Matrix recommends strategies like market penetration for top brands, product development or reformulation for others, and market or product diversification to expand the business. 4) The document raises questions around whether WIC should phase out existing brands, strengthen its business through integration, or sell assets to cut losses

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    481 views12 pages

    Survival Stakes

    Uploaded by

    Shonit Mittal
    1) Excelsior Group acquired Western India Cosmetics (WIC) to diversify beyond its core liquor business, which faces regulatory threats in some states. 2) WIC struggles with unsuccessful brands, lack of product differentiation, labor issues, and inconsistent parent company support. Its top brands like Bharat soap and Herb toothpaste face intense competition. 3) An analysis using Ansoff's Matrix recommends strategies like market penetration for top brands, product development or reformulation for others, and market or product diversification to expand the business. 4) The document raises questions around whether WIC should phase out existing brands, strengthen its business through integration, or sell assets to cut losses

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 12

    SURVIVAL STAKES

    CASE STUDY

    INTRODUCTION

    Western India Cosmetics (WIC), a cosmetic company, was established in 1992 at Aurangabad (Maharashtra). It was acquired by the Excelsior Group, Rs. 1000 crore company whose core business is liquor. Excelsior acquired WIC as a part of a deliberate diversification strategy because of the risks faced by its core business.

    Excelsior Group - The Current Scenario


    Excelsior Group, Is A Rs 1000 Crore Conglomerate Its Core Business Is Liquor, Diversified Into Real Estate, Consumer Products, Finance Etc. Acquires Western India Cosmetics(WIC) To Further Diversify. It Is Diversifying To Overcome The Threat Of Prohibition On Liquor Sales In Different States (Such As AP, Haryana). Liquor Business Under Threat Of Possibility Of Take-over
    Consu mer Financ Produc Others e t 4% 10% 6% Real Estate 10%

    Liqour 70%

    SALES

    PROBLEMS FACED BY WIC



    Burdened with unsuccessful brands. Little product differentiation. Labor strikes and bloated workforce Relatively less market share Erratic support by the parent company i.e. Excelsior.

    Annual Sales of WIC Brands


    30
    25 20 15 10 5 0 Bharat Herb Wash Bonjour Sparkle

    Annual Sales in Rs. crore

    BHARAT
    Medium-priced, ayurvedic and ethnic soap. Direct competition from Chandrika(South India) and Medimix(Pan
    India).

    Implicit threat from Mysore Sandal and Santoor but neither of them
    are ayurvedic products.

    Flat Market share. Bread and Butter for the company.


    Solutions/Improvements

    Add new features to the product by adding new ingredient like


    assortment of healing oils.

    Introduction of smaller sizes to cater to lower-middle class as well.

    Sparkle

    Bonjour
    1. 2. 3.

    A premium/high-priced soap. Currently on a refreshing soap platform. Quite unsuccessful in product positioning. No proper promotional campaign.

    Toilet Soap Annual Sales : 5 Crores Half Dead Product

    4.
    5.

    No sign of revival
    Lack of adequate promotion

    Solution/Improvement1.

    Solutions/Improvements
    1. 2.

    Short term strategies

    Discontinue Production If there are lack of buyers,

    Focus on product design and packaging. Divest the product

    2.

    Long term strategies

    Invest only in day to day operations

    and slowly divest.

    HERB
    Herbal Toothpaste 1. 2. 3. Has Gone Down Well With Consumers Occupies A Place In The Competitive Market Competitors : High-end : Close Up And HUL; Gel Toothpaste Medium : Low Colgate : Babool

    SALES
    Babool Pepsode Others nt Promise Colgate Gel CloseUP Colgate

    4. Lacks New Idea 5. Not Having Idea Of Shifted Into Gel Tooth Paste Solutions/Improvement

    Follow The Strategy Of MARKET PENETRATION, Launch The Product In Sachets. Market Development Strategy By Launching Product As Tooth Powder In Rural Areas.

    WASH
    Detergent Powder 1. 2. Annual Sales : 8 Crores Competitors : High-end : Ariel, Surf Ultra Low Priced: Ariel Supersoaker, Rin Power White, Nirma & Wheel. Others : Shudh, Henko. 3. No Money To Made At Top End 4. Flanks Covered By Other Players Solution/Improvements Remove The Product From the Portfolio.

    Sales
    12% 2% 6% 36% 8% 10% 26%
    Nirma Wheel Surf Ultra Ariel Super Soaker Rin Power White

    Ansoffs Model

    (Market Expansion Grid For WIC)


    PRESENT PRODUCTS
    NEW PRODUCTS

    Present Market

    I. Market Penetration (Intensive Growth)


    Increase Market Share Herb and Bharat

    III. Product Development (Intensive)


    Sparkle
    Product reformulation strategy Feature Addition-Anti Bacterial

    Convert nonusers into users Advertise their Health benefits

    Product feature additions strategy Offer product in different colors

    II. Market Development (Intensive) Herb

    IV. Diversification
    Introduce ayurvedic shower gel Launch herbal mouthwash

    New Market

    Target new segments Toothpowder for consumers of rural area

    Questions

    Should WIC phase out its existing consumer products and bring in its current range of products or retain them all? Should it sell of its assets and cut its losses before it is too late? Should it strengthen its consumer goods business through backward and forward integration?

    or

    IS THERE A FUTURE FOR WIC??

    You might also like