case study on lightwel match company

1. By,
Aparna
Sairam singh

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MATCH COMPANY IN INDIA
ABOUT THE COMPANY.
MARKETING MIX
COMPETITORS
MARKET RESEARCH
PROBLEM IDENTIFICATION
RETAILERS
PERCEPTION OF PEOPLE
SUGGESTIONS

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First match company was establish in the year
1920.
Large scale production started in the 1970’s.
They also produced premium priced ,fancy
and special matches.
In 1940s Lightwel company started in India.

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Specialist in wax coated, book and festive
matches.
Later entered regular matchbox industry.
Four aces, chetak, snowax are the brands of
this company.
In 1970, decline in sales is observed.

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Product: The products are match sticks Book
matches.
1.Wax coated
2. Book matches
3. Festive matches
Place: Dominant position in North Indian
markets.
Price: The price of the match box was
reasonable and affordable.
Promotion: Promotion is done in all retail
outlets in north India

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The only competitors are small scale
manufacturers.
Owing to the excise rebates and other
incentives the small sector had steadily
gained the market.
Black bird matches by a small Haryana based
firm attracted the urban market.

7. 8000
7000
6000
units
million
5000
4000
large scale
3000
small scale
2000
1000
0
1972
1973
1974

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Although the brand is well known to the
people the sales has declined in 1970 so
research has been conducted.
What factors influence consumers to buy the
matches?
 By questionnaires.
 By focus groups.
 By interviews.

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The brand awareness of LMC is very high in
consumers as well as in retailers, but the
retailers were actively pushing the lower price
brands.
A major portion of consumers were
indifferent to the brand of match box they
got.
The major problem in the Lightwel match
company
1. Retailers
2. Perception of people about price

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61% of the people are aware of the brand but
only 20% were actually using it.
It shows us that the retailers were not pushing
the sale of the brand even when the people were
well aware of it.
The product occupies more space and less
margin so the retailers prefer to keep their stock
low.
The retailers are the ones who decide which
brand to push; hence they keep the stock for
those brands which earns them higher margin.

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Snowwax was distinctly perceived to be high
price brand.
92% thought Snowax was at 10p , 8% thought
it was at 8p.
10% thought chetak was at 9p, 60% thought it
was at 8p, 30% thought it was at 7p.
82% thought Black Bird is 7p, 18% thought it
was at 8p… 76% thought Four Ace was at 8p
and 21% thought it was at 7p.3% thought
Four Ace was at 10p.
29% use LW brands.

12. 350
No: of customers
300
250
200
150
100
50
0
Brand Recall
Brand
Retailer
recognition
push
Price based Did not buy
other

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As people are perceiving lightwel matches as
high price we can suggest that to display the
price on match box so consumers know the
actual price when they see it.
Establishing a wholesale market of this
company to encourage sales.
Decreasing the size of the product as it
occupies more space.

14. As consumers are not concerned about the
brand it is suggestible that
 The retailers margins are to be increased.
 New market entries are restricted (as in Coke
& Pepsi)
 Should concentrate on supply and
distribution of products.
 Less match sticks boxes are to be introduced
as product orientation.