This presentation analyzes the marketing of ALL OUT, a leading brand of mosquito repellent vaporizers in India. It discusses ALL OUT's success story, analyzing the marketing environment, competitors, and ALL OUT's strengths. It also covers marketing challenges, market segmentation, and recommendations. Key points include:
1) ALL OUT became a market leader through innovation, advertising strategy, and intelligent pricing despite competition from large FMCG companies.
2) While it faces threats from substitutes and awareness of allethrin toxicity, opportunities exist in rural expansion and product diversification.
3) Recommendations include expanding distribution, tapping the rural market, innovating new products, and validating toxin issues. Maintaining leadership requires constant
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This a case study review of a Harvard Business School:Procter & Gamble: Marketing Capabilities. Done under the Marketing internship of Prof Smaeer Mathur ( IIM L professor).
It is a small research work by our team GLOWING STARS. It is just made for a study purpose . it is not any kind of duplecacy or fraud. we think it will help students to know about POND's TOOTHPASTE.
An insight into why Ghari Detergent is a successful product, especially in the rural market of the country, its SWOT analysis, marketing mix, and Michael Porter;s Five Forces Model. Also, a suggestion on a variety of strategies which could be implemented to increase the reach and market share of the product, in reference with the Ansoff Matrix.
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All Out - a case study
1. WELCOME TO MARKETING MANAGEMENT PRESENTATION
Era Business School
FACULTY : PROF H MANOCHA
AJ/ Ajay K Raina; PGDM 2012-14
2. All those who have heard of KAPL, pl
raise your hands!
And those who have heard of Karamchand
Appliances Pvt Ltd, may say so!
3. Those who did not raise hands
&
Whosoever said this…………
Ek Macchar
Insaan ko “kuch
aur” hi bana
deta hai…!!
…..had not probably heard about ALL OUT!
Era Business School
AJ/ Ajay K Raina; PGDM 2012-14
4. Topic today….
ALL OUT
( A Case Study)
Akhilesh
Col Ajay K Raina, SM
Ankit
Rakshita
Era Business School
Muktesh
Babita
Anant
Praful
AJ/ Ajay K Raina; PGDM 2012-14
5. TIMELINE
• This case study is based on timeline of 1990s/ early
2000s and as such all figures and data of past decade
or so, as given in the case, have been used for analysis.
• Case study, per se, is not being repeated.
Era Business School
AJ/ Ajay K Raina; PGDM 2012-14
6. THE SUCCESS STORY
• ALL OUT is a well established brand name in
mosquito repellant (vapouriser) category.
• Even though the product is an outcome of a foreign
concept, like another domestic brand, Nirma
(Detergent segment), it has withstood the fierce
competition from FMCG giants like HLL, Godrej,
R&C and chemical biggies like Bayer, Balsara and
Tainwala.
• It has been a success story of marketing strategy,
innovative advertising and intelligent pricing.
7. AIM
• Aim of this presentation is to analyse the marketing
environment of All Out and make recommendations
for further improvement/growth.
Era Business School
AJ/ Ajay K Raina; PGDM 2012-14
8. SCOPE OF PRESENTATION
•
•
•
•
Marketing Environment Analysis.
Market Challenges and Segmentation.
Marketing Mix and SWOT Analysis.
Recommendations and Learning.
Era Business School
AJ/ Ajay K Raina; PGDM 2012-14
10. KEY SUCCESS FACTORS
• Fundamental. The biggest strength of All Out lay in
launching a path breaking product (even though
vapourisers were already being marketed in other countries)
and that too in a market that has only been expanding
ever since.
• Key Areas that have made the Difference.
–
–
–
–
–
Flexibility while negotiating for mosquito mats.
The pioneer advantage through technical innovation.
Preference for idea over name.
Innovative advertising strategy.
Competition helped in market expansion when it mattered
the most.
– Loss leader.
Era Business School
AJ/ Ajay K Raina; PGDM 2012-14
11. COMPETITOR ANALYSIS
• Mosquito Repellant Market. Turnover of ₹ 4
Billion; has following major segments:– Coils.
– Mats.
– Creams.
– Vapourisers.
– Sprays.
• Vapouriser Market.
– Market share of repellant market– 5% in 1996; 13% in
1999.
– All out- 69%.
– Others (Goodknight, Baygon, Jet etc) – 31%
12. COMPANY ANALYSIS
• Family owned; smaller than many other
competitors.
• Market leader.
• Single major product.
Era Business School
AJ/ Ajay K Raina; PGDM 2012-14
13. EXTERNAL ENVIRONMENT ANALYSIS..
• The Repellant Industry in India.
– Malaria and Dengue induced illness on the rise; usage
still very low.
– Only 16.4% in all urban areas; 26.6% in metros and 6.9%
in rural areas.
– High potential to grow.
– Mat segment holds more than 51% of the market share
with vapourisers’ share of just 13%.
– Market so wide that new competitors only widen the
market with total sales volume of All Out still on the
increase even though market share may decline.
14. …EXTERNAL ENVIRONMENT ANALYSIS…
• P – Political.
– Any change in taxation policy, environmental law, trade
restrictions will affect any industry.
– Picture looks stable with no major issues, at least during first
10 years of launch.
– Environmental issues, however, may affect.
• E – Economic.
– Risk factor high being a new product.
– Economic growth, interest rates, exchange rates and
the inflation rate.
– However, during initial days of dependence on Japanese
firms, affect of exchange rates and inflation are more likely to
be pronounced.
– With increased indigenisation, effects nullified to a great
extent.
15. …EXTERNAL ENVIRONMENT ANALYSIS
• S – Social factor.
– Younger nation- open to new launches.
– Increasing awareness towards toxins and harmful
effects.
– R&D must to address issues.
• T- Technology.
– First mover advantage.
– New product – innovation and risk.
– Technological edge available.
16. PORTER'S 5 FORCES MODEL
Substitutes
Substitutes like repellant creams, mats, sprays
and coils are a source of threat as well as
opportunity for market expansion.
Domestic tricks.
Suppliers
Major component
producers in Japan;
Buyers
Repellants are a necessary
Competitors
item even though vapouriser
All the major players have may not be the first choice.
Initially, due to negligible
financial muscle to sustain their
domestic production in
brands;
Consumer power is very
India, suppliers enjoy
While all of them have been high and consumers need to
high bargaining power.
competing with one another with be
persuaded
through
newer and newer products, All various positioning planks to
Allout offsets some of this Out retains pioneer advantage .
buy vapourisers that have
bargaining power through
not been seen before.
indigenous
production
during growth phase.
New Entrants
On a whole, many big names exist in the repellant
industry and even though their collective market
share is less than that of All Out, all of them
(including All Out) are likely to create fierce
competition for any new entrant.
17. PART 2 - MARKETING CHALLENGES
AND
SEGMENTATION
Era Business School
AJ/ Ajay K Raina; PGDM 2012-14
18. MARKETING CHALLENGES….
• Pre Launch.
– Not many people were aware of vapourisers.
– Environment conducive for a blue ocean strategy.
• Post Launch.
– Slow pick up after launch in 1990.
– Other major players launch their products; share v/s
volumes.
– Price wars.
• Later.
– Poison (Allethrine) controversy.
Era Business School
– Eco-friendly substitutes.
AJ/ Ajay K Raina; PGDM 2012-14
19. ….MARKETING CHALLENGES
• Current.
– How to retain market share?
– How to expand customer base?
– Environmental and health issues vis-à-vis public
awareness.
Era Business School
AJ/ Ajay K Raina; PGDM 2012-14
20. MARKET SEGMENTATION
• Initially launched at a higher price, All Out aims to be a
relatively inexpensive gadget.
• Focus on following market segments, as divided by :– Geographical – only metros initially, urban centres and towns later.
– Demographic Variables.
• Family- Cuts across age and focuses on family and familial protection.
• Income – Through ‘Deadly Exchange Offer’, attempted to absorb low income
customers
• Educated segment first.
– Psychographic/Lifestyle Variables - initially affluent class and later
middle/ low income group.
– Behavioural or Readiness State/Technological knowledge – It has
tried to tap into the potential market that is open to new ideas.
– Behavioural or Readiness State/ Health-consciousness - It targets
the convenience loving health-conscious market segment of the
repellant market.
(Single to Selective Specialisation)
21. EFFICACY OF MARKET SEGMENTATION
• Overall effective.
• It allows them to target all major market segments
that cater for familial needs, health conscious and
technologically-savvy consumers.
• Although it became more affordable with passage
of time, lower income consumers may not afford to
buy it regularly.
• Feasibility of further price reduction without
affecting quality of the product, is beyond the scope
of this ppt.
22. DISTRIBUTION SYSTEM
• Indian retail sector is composed of 97% “family-run,
street corner stores” and the remaining 3%
consisting of malls and shopping complexes.
• All Out sells its products through a chain of over
120 distributors; follows 2 Level marketing channel.
• But penetration at retail level (18 % of 900,000
outlets approx) needs to be improved further.
• Does not indulge in direct or e-retailing.
23. PART 3 – MARKETING MIX AND SWOT
Era Business School
Era Business School
AJ/ Ajay K Raina; PGDM 2012-14
AJ/ Ajay K Raina; PGDM 2012-14
24. PRODUCT
• Anti mosquito vapouriser.
• An innovation in itself.
• Being unique and new, it gave advantage to the
company even though it had its own share of risk.
• More convenient than cumbersome creams and
suffocating coils and sprays.
• Flip side of toxicity and its dependence on
electricity.
25. PRICE
• Initially.
– Premium pricing (no brand name but innovative and
path breaking).
– Also necessitated by high cost of imported components/
moulds and insistence of high quality of packaging.
• Later.
– Penetrative pricing (Huge cost reductions).
– Loss leader strategy.
– Indigenous production to cut costs.
Era Business School
AJ/ Ajay K Raina; PGDM 2012-14
26. PROMOTION
•
•
•
•
•
•
Advertising through professional companies/self.
Copied frog worked.
AIR and Cricket.
Video Cassettes.
MMR backfired.
Advertisements lost value after a while when
people got sick of watching its ads before every
song.
Era Business School
AJ/ Ajay K Raina; PGDM 2012-14
27. PLACE
• 2 Level marketing channels.
• Still urban/town-centric.
Era Business School
AJ/ Ajay K Raina; PGDM 2012-14
28. SWOT ANALYSIS
• Strengths.
- It is the largest domestic player, with 69% of the
market share.
- Bold decision making (product and advertising).
- Very strong brand (31% Share of Voice).
- Superior Japanese wick technology.
- Strong manufacturing competence and innovation.
- Low cost- high reach campaigns.
- Good target market penetration.
- Innovative marketing strategies.
- Product : Ease of use + Effective.
- Competitive pricing.
Era Business School
AJ/ Ajay K Raina; PGDM 2012-14
29. SWOT ANALYSIS
• Weaknesses.
-The company is dependent on one product for
major profits.
- Retail market penetration not very thorough.
- Electricity is an issue.
- Main component, Allethrine, is a toxin.
- Criticism of advertisement on ethical issues.
Era Business School
AJ/ Ajay K Raina; PGDM 2012-14
30. SWOT ANALYSIS
• Opportunities.
- Improvement in literacy and health consciousness
will increase use of mosquito repellants.
-Tremendous scope for rural market penetration as
the infrastructure improves.
- Increasing per capita national income resulting in
higher disposable income.
-Growing middle class and growing urban
population.
- Scope to diversify into related products.
Era Business School
AJ/ Ajay K Raina; PGDM 2012-14
31. SWOT ANALYSIS
• Threats
- Aggressive price and promotion activity by
competitors - possible price wars.
- Social changes - Rising awareness and growing
consumers obsession with natural alternatives.
- Globalization - there are chances of more and more
MNCs entering the Indian market.
- There can be no assurance that market share will
remain forever.
- Local (neem)/ eco-friendly (racquet) substitutes.
32. PART 4 – RECOMMENDATIONS
AND LEARNING
Era Business School
AJ/ Ajay K Raina; PGDM 2012-14
33. RECOMMENDATIONS….
• All Out needs to expand distribution network that
will not escalate its costs.
• A huge part of population is still uncovered;
potential must be tapped.
• Product innovation and/or diversification will
reduce dependence on one single product.
• Start exploring newer distribution channels like Etailing where high value chocolates are sold in
specialized packs.
• R&D to validate toxin-related issues and develop
safer alternatives.
34. …..RECOMMENDATIONS
• FUTURE: – Having established itself as a market leader, the
company has to look for expansion/ diversification to
keep its competitors at bay.
– In today’s competitive world, as we know, there can not
be permanent No 1 brands.
– Company has limited choice but to expand or get ready
to be eaten up by big fishes someday.
Era Business School
AJ/ Ajay K Raina; PGDM 2012-14
35. LEARNING
• Being innovative gives us an edge.
• Small firms can not only become very successful but
can beat the competition too.
• If R&D is not the strength, information gathering and
situational awareness can help.
• Innovative advertising rather than big ticket advertising
helps create awareness about the brand.
• Innovative advertising techniques can save money yet
promote your brand without escalating the budget.
• There is no permanent seat at the top and companies
need to constantly innovate and improve in order to
remain relevant.