The Balsara Group decided to enter the toothpaste market in 1974. There was significant competition from multinational brands operating in India. The Balsara Group identified several external and internal premises to support entering the toothpaste market. Externally, they saw growing personal hygiene awareness and a potential for an Indian brand to appeal to nationalist sentiment. Internally, they could leverage their existing household product distribution network, but they were limited by their smaller size compared to established brands.
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Balsara Group Case Study - Planning for Toothpaste Market Entry
1. Case Study
Balsara Group promoted balsara hygiene products
ltd. In 1978.Before promoting this company the
group was engaged in the business of household
hygiene products for eg-,air purifier under Odonil
brand, cleaning powder(odopic),water filter(Purita
s)And lavatory cleaner(sanifresh).
In 1974 ,the balsara group decided to enter
personal hygiene and decided to enter personal
hygiene and decided to go for TOOTH PASTE.
There was a cut throat competition of this product
by various multinationals operating in India.
2. Continued
The balsara group prepared the following premises:
1.External premises-these were
a) The concept of personal premises had begun to get importance due to rapid growth of education and growing awareness
b) Personal hygiene consciousness has developed due to frequent interaction among the people at professional and social levels.
c) Tooth paste was reserved for small scale sector. in future the competition can come from this only. The small sector was not giving
good quality products.
d) There was lot of scope for toothpaste market as majority of population was not covered by this necessity.
e) The existing players were multinational companies and there was anti-foreign product feeling particularly after the enactment of
foreign exchange regulation act(FERA),1973.the perception was that this feeling or swadeshi awareness could create favorable
response to a consumer product from Indian company.
Retaliation by the existing market players was not expected at large scale, particularly by the market leader(Colgate) because of its
complacency due to belief that the new brands would fade away like others in the past.
2. Internal premises .these were:
A. Balsara group was already in the business of household hygiene with the strong network of dealers and retailers. This net work could
be used for promoting and marketing toothpaste as well.
B. Consumer awareness and acceptability could be easily created as Balsara ‘s household hygiene products were market leaders.
C. The Company had a strong research and development department which was able to develop new products in hygiene area.
D. The company had a major weakness in terms of its size. the resources at the disposal of the company were limited. for introducing a
consumer product in a highly competitive market dominated by well established brands with very strong loyalty required huge
financial resources for promotion.
Questions for discussion and analysis
1.Based on the planning premises developed by the company, identify the opportunities,threats,strengths and weakness available to the
company.
2. “Planning is a bridge between present and future” comment on this statement.
3 Explain the planning type on the basis of
a) Frequency of use
b) Time frame
c) Organizational level