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Case Synopsis
The case talks about the firm named INDRADHANUSH PAINTS LIMITED (IPL).
Founded in early 1940s, it had developed its wide distribution network across India
by 1960s.
At the inception of IPL the paint industry was dominated by multinationals like
- ICI
- British Paints
- Goodlass Nerolac
- Others
Growth of IPL
Company started of with small distributors as the large ones were under the control
of multinationals.
It also identified preferences of the rural markets and modified its products
accordingly.
Enamel Paints
Liquid Paints
Distempers
Aluminium Paints
Stainers
Of these, the first three items had substantial sales in rural areas.
As purchasing power in the rural market was low, the company introduced
paints in small tins of
-50 ml
-100 ml
-200 ml
These small packs gave the company the following benefits -competitive advantage,
-added USP to the product
-Loyal customer base
The sales force working with Mr. Gupta, the current in charge of the rural
marketing operations, reported decline in sales during the past nine months when
compared YOY with last year.
The rural market share of the company had dipped from 45% to 43%.
Task before Mr. Gupta was to present the reasons for the fall in the market share
and also the future plans to increase the market share.
Also in 1993 there was drought because of which the entire paint industry was
declining.
COMPETITION
IPL; 31%
Others; 43%
IPL
Others
Goodlass Nerolac
Berger paints
Prices of Material
Types of
materials
Survey 1989
Survey 1993
Survey 1989
Survey 1993
Chuna
63%
15%
Rs. 22
Rs. 25
Cheaper paints
and distempers
2%
45%
Rs. 55
Rs. 62
IPL Harvester
distemper and
paints
35%
40%
Rs. 70
Rs. 80
Survey: Observations
Survey 1989
Paints were used for painting horns of animals & front entrance door of houses.
Distempers were used for color washing the walls of the houses.
Survey: Observations
Survey 1993
IPL distemper and paints were good quality but were expensive.
Benefits Received
Offering:
Decoration
Benefits:
Decoration of walls.
Decoration of horns of bulls/bullocks/cows.
Decoration of wheels and body of bullock carts.
Competition level
Benefit: Decoration of walls
Competition level
Benefit:
Decoration of horns of bulls/bullocks/cows.
Decoration of wheels and body of bullock carts.
Marketing Plan
Planning
Unit
Research
Unit
MAPPING
ENVIRONMENT
- Technological
ANALYSE
ORGANISATION
Mission
Strengths
Goals
-Economic
Weakness
- Cultural
ORGANISATIONA
L OBJECTIVES
Set
Marketing
Mission,
Goals
Impleme
nt
Assess
Performane
Develop Core
Marketing
(STP)
Marketing
Mix
Product
Determine
Performance
Benchmarks
Compare
Price
Place
Promotion
Planning Unit
Mission
Keep on increasing market share by 5% every following year.
Goals
To be the market leaders in Rural sector and have considerable
share in urban areas.
Research Unit
Strength:
IPL had comparative advantage over traditional Chuna & as
survey revealed people were switching to distemper & other
color paints.
Weakness:
Distemper had only one gaudy shade that was RED.
Pricing Strategy was inappropriate according to the market
Mapping Environment
Economic:
Preference was for cheaper product.
Cultural:
Paints were preferably used during festive season.
Organization objective:
To increase the market share from 43% to45%in the current
year.
Marketing Mission:
To increase the sales of the product.
Marketing Goal:
To have a competitive edge over others.
Marketing mix-4Ps
Product: increasing the product depth and using
attractive packaging.
Price : using market penetration strategy.
Promotion: Using radio, colourful banner.
using haats and melas as place of distributing channels
as
free sample.
Promotion
Implement
Determine performance benchmarks
Assess the performance
Compare
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