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Akash

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all out growth story

all out growth story

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  • 1. Case Study
    Team members:
    Akashdeep Saluja (2010IPG_05)
    Ambati Nanda Kumar (2010IPG_08)
    Anshuman Srivastava( 2010IPG_17)
    Team Name:
    Economists
  • 2. The play started like…
    All Out : Yamraj of Mosquitoes was launched in 1990 by a small company known to the world as KAPL.
    Run by the Arya Brothers :Naveen, Anil, Bimal who spotted this Mosquito Repellant Business to be their Golden Goose.
    Tie up with a Japanese company, Earth Chemicals Co. Ltd. for the technology.
    The product consisted of a heating unit and small container of chemicals.
    The product was found to be much more effective than mats.
  • 3. Beginning of success story….
    The launch of All Out in 1990, started becoming popular.
    In the mid 90’s KAPL attained a share of 5% of the total mosquito repellents sold.
    The reason for the success of KAPL, because the other companies were concentrating on mats and coils.
    The sales of vaporizers segment reached about 253 million in 1996-97 which was dominated by KAPL.
  • 4. GSLL entered the market
    GSLL entered the market seeing the future growth of the vaporizer mosquito repellent after mid 90s.
    Good knight launched by GSLL with a jump in acquired a market share of about 40%.
    The launch of good knight expanded the market.
    Even after the initially huge sales of GSLL Good knight, KAPL was successful to clinch back the market again by launching some very lucrative offers to the customers.
    Solution to Ques 1
  • 5. Comparison GSLL Vs KAPL
    GSLL had strong market penetration in terms of distributors and percentage of retail outlets selling their product i.e. 54% as compared to 18%
    The price of liquid refill of good knight was Rs. 1.05/day as compared to Rs 1.2/day for all out.
    GSLL succeeded to have a major pie of 40% of the vaporizer market in just one year after its launch.
  • 6. Fight back of all out
    After the entry of good knight the competition was tough and to maintain its market segment intact it brought out different schemes to clinch back the market and it worked out successfully for them.
    • “ Deadly offer” in which the company was selling the pluggy and refill for just Rs 99 in1998.
    • 7. “Deadly exchange scheme” launched in 1999 to give customers exchange the mat machine for a pluggy one for just Rs 27.
  • Reasons for success of all out:
    • Innovation: As KAPL was the first company in the Indian market to launch a vaporizer which is quite more effective than other products in its competition
    • 8. Easy to use: All out was easy to use as it comes with a refill pack which lasts for 45 days whereas it was required in mats to change it daily.
    • 9. Innovative ad campaign: KAPL became famous for its innovative ad campaign which attracted a lot of customers towards it. Also the name of the product “All Out” proved to be lucrative.
    • 10. Very strong marketing: the company was also famous for its marketing tools and techniques which played a major role in accelerating the business.
  • Ownership transferred
    KAPL was bought by SC Johnson Ltd. – a US based company.
    SC Johnson bought KAPL in two phases i.e. in 2003 and 2005.
    The deal amount was not disclosed but was estimated at Rs. 380 crores.
    This helped the All Out brand a lot in terms of technology and innovation.
  • 11.
  • 12. Bright future
    Higher number of cases with diseases caused by mosquitoes in India.
    • 1.3 million cases and 610 deaths by malaria.
    • 13. 12419 cases and 80 deaths by dengue.
    • 14. 4482 cases and 774 deaths by encephalitis.
    Very less penetration of vaporizers as22.4% in metros, 16.6% in urban areas and 6.9% in rural areas in 2000.
    In addition to very less penetration, the increasing population at a growth rate of around 9% is also a major promoter of this business.
    Answer to Q2
  • 15. Hurdles
    As the liquid contains Allethrin which is proven to be harmful to human, so question arises on its success.
    Competition from existing competitors like good knight, maxo and mortein.
    Entry of new player.
    Competition from substitute products like coils, mats, etc.
  • 16. Company future
    • We are pretty sure that the company would be able to not just maintain but also increase its profit year by year.
    • 17. As still it has a market share of about 64%.
    • 18. Company is well settled and its not easy for any new entrant to compete effectively.
    • 19. Also the mosquito repellent market size is expected to grow up to Rs 39 billion by 2014-15, so there is huge scope of growth.
    • 20. For Alltherin, it should be noted that it is said to be harmful only when used in excess.
    • 21. Also the company has given certain guidelines viz., the doors and windows should be kept open while using the vaporizers.
    • 22. Company is also seeking for a substitute of Alltherin which could boost their market segment of vaporizers.
  • Steps recommended
    Company should come up with such a advertisement which would create awareness among people from the harmful diseases that can be caused by variety of mosquitoes and promote the use of vaporizers.
    To compete successfully innovation is a must, so we suggest to invest more money on R&D.
    Time to time customer feed back is a known tree to rely upon so as to maintain growth.
  • 23. Possible innovations
    The company has recently launched a pluggy machine model with a controller to adjust the rate at which the liquid vaporizes as per the requirement.
    We also suggest to launch a vaporizer that can even run on a battery, this will help them to clinch a market segment from coils that is presently about 50% of the total mosquito repellent.
  • 24. References
    • www.scjohnson.com
    • 25. www.rmiembassyus.org
    • 26. www.economictimes.indiatimes.com
    • 27. www.timesofindia.indiatimes.com
    • 28. www.niir.org
    • 29. www.physorg.com
    • 30. www.expressindia.com
    • 31. Indian express
  • Thank You