Marketing Strategies on Case Study

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  • Topic: Marketing, Detergent, Laundry
  • Pages : 5 (1374 words )
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  • Published : September 8, 2009
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CASE STUDY
RAVI SOAP FACTORY
COMPANY OVERVIEW
PROBLEM DEFINITION:
DECLINING SALES VOLUME
The company is currently experiencing declining sales volume due to a stiff competition in the market. Customers are switching brands based on television commercials. Since the arrival of cable television in the terai region in 1997 ,the companies like HLL , Nirma ,P&G,Tomco started advertising their products heavily. The products include both detergent powder and detergent cake. HLL was focusing on “ SURF” detergent powder and “WHEEL” detergent cake. TOMCO was promoting economy detergent powder called “OK”. P & G was test marketing Arial microsystem. Nirma was also doing well in detergent cake and detergent powder segment. DECREASING PROFIT

Decreasing sales volume and lower product demand has lead to an overall decrease in net profits. Moreover , the cost of underutilization of plant capacity has eaten into the space of total cost per unit of soap produced. Therefore ,the company is not being able to enjoy the benefit of lower cost of production than its competitors. This has also lead to the consumers shifting based from their products. Thus , decreasing sales and overall profits. INABILITY TO OPERATE AT FULL CAPACITY

Due to decrease in the market demand of their product ,the company is not being able to operate its plant at full capacity. The company is thus at present manufacturing soap cakes below the full capacity level. This has lead to the under utilization of resources in the company. Thus the company is occurring huge losses. INCREASE IN THE NUMBER OF COMPETITORS

Terai region is becoming attractive prime market for many FMCG companies to sell their products. The advent of cable television in the region has increased consumer awareness. Booming Indian economy had led to the growth of per capita income in the country as well. Modernization and technological advancements have not left the terai region untouched. Increased purchasing power and changing lifestyle of the consumers has made them shift base towards better products. Thus ,the companies both national and regional are not leaving any stone unturned to tap this prime market. INCREASED USAGE OF WASHING MACHINE IN THE HOUSEHOLD

Modernization and technological advancements have not left the terai region untouched. Increased purchasing power and changing lifestyle of the consumers has made them shift base towards better products,such as increased usage of washing machine in the household. Booming Indian economy had led to the growth of per capita income in the country as well. STRUCTURE OF THE ORGANIZATION

The major problem with the ravi soap industry was its organization structure, a military organisation with centralized control by managing director over all the employee and personnel close to the line of action having no authority. Managing Director

(Mr. S. Singh)
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Sales Executive Production Supervisor Accountant
(Mr. Manutosh Roy) (Mr. Satish Khurana) (Mr. Ram Shankar)
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The present structure of the organization is such that the workers were the one performing the tasks whereas on the other hand the sales executive, production supervisor and accountant had no authority of decision making. The decision making authority was solely in the hand of Managing Director. SWOT ANALYSIS

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RECOMMENDATIONS
Keeping the problems faced by the owners of Ravi Soap Factory, the following suggestions have been provided. {draw:frame}
PRODUCT
The need of the hour in the case os ravi soap factory is to focus on the needs of the consumers and provide a product that will satisfy those needs. It is important to identify the core benefits that the consumers will locate in the company’s products. The following strategies should be employed :...
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