Samah Razor Blade Industries introduced a new product called Balaka Super blades in 1985 to replace their existing Balaka blades. However, the introduction of Balaka Super blades failed to capture the market as sales fell from 15 million to 8 million. There were several reasons for this failure including lack of proper market research, wrong marketing decisions, higher prices than competitors, and not accounting for stronger competition in the market at that time. Recommendations to successfully market Balaka Super blades in the future included conducting comprehensive market research, proper decision making, targeting different customer groups, and developing competitive pricing strategies. Recommendations to reintroduce the original Balaka blades focused on market segmentation, improving the marketing mix of product, price, place
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Assignment On
Case Study of “Samah Razor Blade Industries”
Course Title: Marketing Management & Practices
Course Code: MKT 5135
Submitted to:
Prof. Dr. Mohammad Salek
Lecturer
School of Business Studies
Southeast University
Submitted By:
Name Student Id Batch Program Section
Ishtiak Alam Preetam 2017010004011 26th MBA (1year) 2
Arifa Nasrin Akhi 2017010004013 26th MBA (1year) 2
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Case Summary:
The Balaka blade is the brand of Samah razor blade industries. It is one of the leading razor
blade manufactures in the country & at first they are produce only one blade which is Balaka. In
1985 they made a significant change in its product to introduce Balaka Super (B/S). After a
rigorous sales campaign B/S was marketed and it failed in capturing the market. Sales fell to 8
million from 15 million. It was established in 1966 and until 1976 it was only razor blade
manufactures in Bangladesh.
Question no. 1
Why do you think the introduction of Balaka Supper blades failed?
Answer:
We think that there are some major issues behind the failure of Balaka Super Blades. They are
given below:
1. Decision making Problem: B/S makes a wrong marketing decision. In that case we
found that the management of Samah Razor Blade industries decided to discount their
existing product. Balaka and their customer fall upon dilemma about their new product &
its price also creates barrier to introducing Balaka super blade.
2. Customer’s dissatisfaction: In one word we can describe marketing which is
satisfactory to the customers. The customers of Balaka had been quite satisfied with the
quality and price of Balaka. Though the target group was same for both products Balaka
Super could not make a place to the customers mind.
3. Lack of Marketing Research: The market survey was conducted only on Dhaka and its
suburbs.
4. Wrong marketing plan: They doesn’t make any proper marketing like competitive
review, sample of competitive products and pricing, SWOT analysis, marketing strategy
and action programs etc.
5. Pricing strategy: The price of balaka super was a bit higher though it provides superior
quality but it is a bit tough situation to buy this for lower middle class people.
6. Poor Demographic Analysis: Samah Razor Blade industries segmented their market for
middle class & lower middle class; it was another reason fails to introduction of Balaka
Super.
7. Stronger Competitors: Before 1976 there was no competitors of Samah Razor Blade
industry in Bangladesh but in 1985 when they took strategy for developing a new product
in that time competition raised in the market because besides of imported blades
Government owned blade company “Sword” also compete with Balaka super so that
Md.Maksud Rana 2017010004019 26th MBA (1year) 2
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customers bargaining power became high and also they had switching options from one
to another.
Question no. 2:
What recommendation would you make for marketing Balaka Super blades?
Answer:
We have some recommendation for marketing Balaka Super blades. They are given below:
1. Proper conduct of survey: Samah Razor Blade industries conduct their survey in Dhaka
and its suburbs. We think they should conduct a survey all over the country with full of
efficient resources which give the correct information about what people are demanding.
2. Proper decision making: Samah Razor Blade industries should take a decision to market
its new product Balaka Super parallel with the existing product which is Balaka.
Although survey can give positive result but the actual result will come out when Balaka
Super will be marketed.
3. Target group based product: Balaka Super and Balaka had the same target group which
is lower middle class. We think they could change the target group for Balaka super such
as lower class and upper middle class.
4. Pricing strategy: Samah Razor Blade industries should take different pricing strategies
for different target groups. For example, for lower class people pricing should be cheaper
rather than upper middle class people. So that they can effort the product.
5. Competition based planning: to sustain in the market, it is compulsory to have
knowledge what your competitors are doing to satisfy their customers. So, Samah Razor
Blade industries had to look out for its competitors strategies and analyze it to take a
sustainable strategies so that they could satisfy their customers.
4. 4
Question no. 3:
What recommendation would you make regarding the reintroduction of Balaka blades?
Answer:
We think Balaka blades had some opportunity regarding reintroduction. They are given below:
1. Proper market segmentation: The customers of Balaka ware lower middle class group
but we think they could target middle class and lower class people. At first they have to
target middle class, lower middle class and lower class.
2. Marketing mix: They could reintroduce Balaka by applying marketing mix.
Product: Samah Razor Blade industries could reintroduce Balaka by improving
product design, quality and packaging.
Price: Samah Razor Blade industries have to do little bit research about their
competitors pricing strategy then they can make a price for their blades with a
standard quality. We think this could help to re-establish their product value in
customers mind.
Place: By arranging effective distribution channel with qualified sales force they
can achieve their desire goals.
Promotion: This is the main part for Balaka’s reintroduction. To promote Balaka
blade following stapes can be taken.
a) Advertisement: They should advertisement in various way like T.V
channels, daily newspaper, radio, billboard etc.
b) Buy one get one options: For promotional purpose they may introduce
buy one get one option for the customers. It helps to stimulate their
customer to purchase again and again.
c) CSR activities: Samah Razor Blade industries can do some CSR activities
to the society like blood donation, tree plantation, beatification the cities,
donate some clothes etc.
d) Special discount for men’s saloon: Samah Razor Blade industries can
provide some special discount for saloon.