Lightwell Matchstick Case Analysis

Topics: Match, Sales, Trademark Pages: 6 (905 words) Published: October 28, 2011
Problem identification:

The performance of Ligthwel Match Company in relation to the total match industry had not been very satisfactory for the last two years. Sales have declined and seasonal fluctuations which were a regular phenomenon for the match industry have become more severe than before. Though LMC has a great reputation in India, its market share is continuously decreasing. Due to the excise rebate and other incentives, the small scale sector has been steadily gaining the market share of match industry. Black bird matches made by a small Haryana based firm had become phenomenally popular in some large urban markets. 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 .The small manufacturers were gaining the retailers loyalty by offering better margins, easier terms and flexible supply patterns. Also a major portion of consumers were indifferent to the brand of match box they got.

The high price perception of LW brands was a distinctly unfavorable factor in existing market conditions.

Decision issues: Forecasting of sales, Inventory and stock planning, terms and norms to the retailer, mode of supply patterns, and price of the product.


➢ Four Ace brand was the most well-known brand in market.

➢ Chetak and snowax were also well known but Black bird is used by maximum number of people.

➢ Price perception of various brands:

➢ 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.

➢ 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.

Percentage of respondents using Black Bird is 31 and Four aces is 20 , Chetak is 4, Snowax is 5 .

29% use LW brands. Black bird is the large one.

More people are buying low priced matches in the dry season but they are shifting towards high quality matches in monsoon season.

67% thought that all brands are same w.r.t price, 33% thought some brands were different from others in terms of price. 30% thought that some brands were costlier than others. 13.2% thought Four Aces is the costliest brand, 8.4 % thought Snowax is the costlier brand, 3.9% named Chetak is the costlier brand . Only 4.5 % of the respondents named other brands as costlier brands.

Only 9% thought some brands are cheaper,

6.39% thought that Black Bird was relatively in expensive brand.


67% thought that there were no differences in the quality of matches.

Of the other 33% majority thought Four Ace and Snowax are the high quality brands.

Number of Match Sticks:

80% thought that all brands have same number of match sticks in them.

20% thought some have more sticks in them. They named Four aces and Snowax.

75% indicated no brand preference.

25% indicated brand preference as Four ace, Black bird, Large ,Snowax and Chetak.

Informal questioning of retailers showed LW brands were asked more in monsoon season.

Consumers are brand aware but not brand conscious.

52% of retailers reported that Four Aces was the largest selling brand , 38% was the largest selling brand. This is very less compared to their market share before four years.

Product mix:

Product: Matchsticks, more space, less revenue, bulky transport, 3 varieties

Price: higher than bb and other small scale due to excise concessions\


Place: North India, bit of east, no west no south

Brand awareness and its effects on usage:

|Brand |Awareness |Usage |Usage: Awareness ratio | |Four Aces |61 |20 |0.33 | |Chetak |27...
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