Consumer Products limited Essay

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EXECUTIVE SUMMARY
Consumer Products Ltd. was a public limited company and leading in marketing and manufacturing in household goods. Marketing was their co-coordinating function and the marketing management had the profit responsibility for a particular product/product group. Washing product is the major profit centre of the company. Their main product ‘
DAZZLE
’ accounted for 1/3 rd of profit of washing group. The washing powder market was 1/10 th of the washing soap market. The product quality is superior to all others. The company
’s market share was 80 present till September 1966. But, after it faced a solid competition from
Spark
,
CPL’s
market share reduced. Now the company had to decide as to how to regain profitability growth.

CASE FACTS


CPL is a leading in manufacturing and marketing in household products.


Washing product was the major profit centre for the CPL.


Their main product ‘
DAZZLE
’ accounted for 1/3 rd of profit of washing group.


Fabric washing market is divided into two products- Washing Soaps and Washing Products.


WASHING SOAPS
- small-scale units operating in very small localized areas contributed more than 3/4 th of the washing soap, they have inferior quality and had poor distribution channels at national level


WASHING POWDER
- production located entirely in the organized large-scale sector of the industry requiring greater technical knows.


Washing powder market was 1/10 th the size of washing soap market, but high profitability because of higher margins


The market for washing powders was restricted to large urban towns and the market was highly competitive but had high growth potential in small towns.
But difficulties in distribution and the high cost at distribution in smaller towns. The transportation part was left to the wholesaler’s trade channels Four main brands in washing powders market:
DAZZLE
,
BRIGHT
,
WHITE
and
SPARK.

 White and Spark - marketed by the same company.


Dazzle- leading in market share of washing powder until September 1966. It enjoyed a market share of 80 percent of the total washing powder market. Bright-10%, White-7%, Spark 3%


Until September 1966, Dazzle, Bright and White were sold in similar carton pack sizes of 700gm, 400gm, 200gm but Spark was sold only in bulks as 1kg and 2kg


Dazzle
- superior quality, expensive, targeted urban population


White and
Bright
- Inferior quality, Cheaper, targeted small towns.


Dazzle, Bright, and White- heavy expenditure on theme based advertising and some consumer promotion such as free gifts.  Spark’s
Promotion Strategy as on September, 1966
Pack size 1 kg, 2 kg. - Plastic bucket for Rs. 6 on six cartons of large pack - A coupon was printed on each large carton, six of these coupon could exchange at retail store for gift.


As a result, market share of Spark rose to 10% to 25% within just 4months.


White and Spark were marketed by same company

SITUATION ANALYSIS
CPL is a leading company with authorized cap of Rs.10 crores, dealing in household products. Marketing is their co-coordinating function and the marketing management has the profit responsibility for a particular product/product group. Washing product is the major profit centre of the company.
Their main product ‘
DAZZLE
’ accounted for 1/3 rd of profit of washing group. The product quality is superior to all others. Since the washing powder market is restricted to large urban areas, CPL has an opportunity to provide in smaller areas. But difficulties of distribution and the high cost of going to the smaller towns are acting as barriers. Hence they had to rely upon wholesale trade channels in such areas. Till September 1966, Dazzle enjoyed a market share of 80 percent of the total washing powder market. But after that Spark came up
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